Social media giants embrace mobile advertising with gusto

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Twitter's $230 million mobile advertising deal with Omnicom is part of a trend among social media sites to beef up their mobile ad capabilities.

As part of the deal, Omnicom will integrate its automated ad buying unit Accuen with Twitter's mobile ad exchange MoPub, which Twitter bought last year for $350 million, according to The Wall Street Journal.

The deal with lock in ad rates and inventory for Omnicom agencies and give Omnicom a "first look" at new ad units and opportunities being developed by Twitter, the newspaper reports, citing company sources.

"This is the first holding company agreement we've done on the mobile ad exchange side. It's great for us because we'll now have high-quality advertisers coming through the exchange," Adam Bain, Twitter's president of global revenue, tells The Journal.

The Twitter-Omnicom deal follows Twitter's launch in April of a mobile app promotion suite for its MoPub exchange and native ads service that sells ads that blend into content on mobile devices, according to a report by Media Bistro's All Twitter.

In addition, Facebook launched its mobile ad network Audience Network, which promises mobile advertisers the ability to "extend their campaigns beyond Facebook and into other mobile apps," FierceMobileIT reported last month.

Commenting on Facebook's move, Erez Gross, senior vice president of mobile and display advertising at Matomy Media Group, writes in an Inside Mobile Apps column: "While it remains to be seen how beneficial Facebook's Audience Network will be for app developers' monetization efforts, two of Facebook's other recent ad-targeting tools--Custom Audiences and Lookalike Audiences--have proven to be useful for improving the performance of mobile app install ads."

"Facebook has long been a friendly venue for mobile app publishers seeking new users. Now, with its new mobile ad network and more advanced ad targeting and performance solutions, it offers several methods for achieving higher performance from mobile app install ad campaigns," Gross adds.

For Facebook at least, its mobile ad strategy is working. The social networking giant saw 59 percent of its overall ad revenue come from mobile in the 2014 first quarter, representing a 30 percent increase from the first quarter of 2013.

For more:
- read The Wall Street Journal article
- check out the All Twitter report
- see Gross's column

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