Twitter will be the first to sell ad inventory in the so-called programmatic ad market, according to people familiar with the matter. The move could help make up for some of the earnings that have slumped since Elon Musk bought the company.
Mobile ad tech company InMobi is now allowed to sell Twitter inventory, according to Twitter’s updated Ads.txt file, which shows vendors allowed to sell inventory by publisher. is the only third-party vendor A year ago, the Ads.txt file didn’t list third-party vendors as authorized sellers of Twitter inventory, but that’s changed.
According to InMobi’s website, it has driven advertising campaigns for companies including McDonald’s, Marriott Bonvoy and Mondelez International.
Twitter appears to want multiple vendors to sell ad space. That’s because big publishers and app developers tend to work with a number of ad tech vendors to expose their inventory to as many potential advertisers as possible.
Twitter has been in ongoing talks with ad tech vendors about partnerships for months, according to people familiar with the matter. A lack of resources has slowed talks, one of the people said.
Insider reached out to Twitter for comment, but received an automated message reply without addressing the question.
Urgent need to reorganize the sales team
The ad tech partnership should theoretically allow Twitter to serve more advertisers.
Within the milliseconds it takes for a page or app to load, open marketplace advertisers participate in a fast auction where advertising space is awarded to the highest bidder. An open marketplace allows advertisers to serve ads to target audiences across multiple sites and apps without negotiating with each publisher or platform individually.
However, open marketplaces tend to be the lowest-cost environment for advertisers to reach large audiences. Larger publishers typically set aside premium inventory for direct sales deals that give them more control over pricing.
In April, Insider Intelligence cut its 2023 advertising revenue forecast for Twitter to $2.98 billion, down 37% from its October forecast. . Twitter is facing problems ranging from content moderation to technical glitches to a drastic layoff that has left many of its marketers’ connections no longer working.
Musk’s hiring of former NBCUniversal head of ad sales Linda Yaccarino as Twitter’s next CEO is largely an attempt to reclaim the advertising industry, observers inside and outside the company say. This is the view of Yaccarino, highly regarded in the advertising industry, has a huge network of influential marketers and ad buyers (although ad sales on Twitter are very different from ads centered on prestigious TV shows). ).
“Linda needs to rehire a new sales team,” said Matt Prohaska, CEO of Prohaska marketing consultancy, on Twitter for programmatic to work effectively. added that there is still a “great opportunity” for intent-focused data and ad inventory. Yaccarino has not yet officially taken office.
Shiv Gupta, founder of ad tech education firm U of Digital, says training is critical to turning programmatic advertising into a revenue generator.
“While it’s nice to ‘light the fire’ and hope the revenue just rolls in (which it might, to some extent), to consistently generate revenue from programmatic advertising, Linda’s team needs You need to be able to properly interact with programmatic advertising in the marketplace,” Gupta said.
Twitter sold its mobile ad network, MoPub, to game ad tech firm AppLovin for $1.05 billion, with Musk taking over Twitter in October 2022. That was before the acquisition. The move to partner with external programmatic ad vendors comes more than a year later.
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(Edited by Ayuko Tokiwa)
Source: BusinessInsider
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