Backing up speculation the company would make such a move, the FT reports Twitter (TWTR) plans to use mobile ad exchange MoPub (set to be acquired for a reported $300M+) to create a mobile ad network that will deliver targeted ads on 3rd-party sites/apps using information gleaned from a Twitter user's followers and tweets.
Competition in the mobile ad network space has grown intense. Google's AdMob, Apple's iAd, and Millennial Media/Jumptap (MM +0.3%) all have entrenched market positions, and Facebook just restarted a test for a targeted mobile ad network (leveraging data on Facebook activity) of its own.
On the other hand, Twitter possesses volumes of useful data on the interests of its active users, and is going after a mobile ad market eMarketer expects will grow 89% this year to $16.65B (Google and Facebook will account for a large chunk of that).
Mobile accounted for 65% of Twitter's Q2 ad revenue, and 75% of the company's monthly active users during the quarter at least partly accessed Twitter through a mobile device.