Twitter buys mobile ad startup, rallies on coverage launch

|By:, SA News Editor

Twitter (TWTR +4%) has bought Namo Media, developer of a native ad platform for mobile apps. TechCrunch reports the purchase price is around $50M.

Namo's offerings will be integrated with Twitter's MoPub mobile ad exchange/network, which (per Twitter) reaches ~1B Android/iOS users. The purchase comes after ad giant Omnicom struck a $230M deal with Twitter that involves making ad buys via MoPub.

Interest in native ad formats - Twitter's Promoted Tweets/Trends serve as examples - has been especially strong for mobile, given the low click rates and even lower ad prices attached to standard mobile display ads. Namo bolsters MoPub's product line as it battles with Facebook, Google, Apple, and others in a very competitive in-app ad market.

Shares have rallied above $34 with an assist from Pac Crest's Evan Wilson, who has launched coverage with an Outperform and $45 PT. Wilson is upbeat about Twitter's recently-launched app install ads, which are delivered both via Twitter's site/apps and MoPub.

The launch follows five May upgrades that came in the wake of Twitter's lockup expiration.