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AppLovin stirs up a mobile ad pot when buying Twitter’s MoPub for $ 1.05 billion.

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AppLovin Today, we have agreed to buy mobile advertising company MoPub from Twitter for $ 1.05 billion in cash. The deal is a combination of marketing, advertising, and gaming properties, all integrated into one company, which can be frowned upon by the industry.

Based in San Francisco, AppLovin has come a long way and is now a $ 27.9 billion publicly traded company. AppLovin was founded in 2012 by Adam Foroughi, John Krystynak and Andrew Karam. Focused on mobile advertising, marketing and analytics in an era when mobile games were becoming more popular and becoming the largest platform in the gaming industry.

Then it began to make some crucial moves that helped build its value further across industry boundaries. In 2018, we launched Lion Studios to publish and promote the game in collaboration with mobile developers. Raised funds from Hondai Capital and KKR and acquired Max, an in-app bidding company.Invested and acquired several mobile game studios Machine zone Estimated at $ 600 million in February 2020.

The latter move was significant as Machine Zone’s Game of War: FireAge and Mobile Strike titles generated billions of dollars in revenue and hundreds of millions of downloads. As a result, AppLovin has grown so large that it has been competing with many gaming customers. With the acquisition of MoPub, a leading mobile advertising company, the fear of competing with customers through a combination of entities remains today. Whatever the fear, AppLovin has become a financial Jaguar note and has begun to acquire many companies. It culminated in April with a $ 23 billion initial public offering that far surpassed rivals such as the game Zynga.

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Above: LivingSocial Product VP Mike Bidgori; praises co-founder and CEO Adam Foroughi. Venture Beat Writer Mark Sullivan at Mobile Beat 2014

Image Credit: Mike O’Donnell / Venture Beat

Twitter purchased MoPub for $ 350 million in 2013, expanding its advertising business, placing ads within other apps, and building Twitter’s own ad auction. Twiiter focuses on profitable products it owns and operates, driving growth across key areas of services such as performance advertising.

Twitter CEO Jack Dorsey said in a statement: Thanks to the amazing team and customers who have contributed to the success of MoPub on Twitter over the years. “

In 2020, MoPub generated approximately $ 188 million annually. Under the agreement, Twitter will provide AppLovin with certain services for a period of time after closing to enable an orderly transition between publishers and advertisers. The transaction will close in the coming months.

AppLovin said the deal is very strategic as the combination of MoPub and AppLovin platforms benefits both customers and partners in the broader mobile app ecosystem. AppLovin said it helps publishers maximize revenue growth through intensifying demand and competition for each ad impression. For advertisers, AppLovin said it will extend its reach to hundreds of new customers with market-efficient pricing. In the first half of 2021, AppLovin said it promoted 2 billion installations through the platform.

reaction

Rivals running the mobile monetization business have seized the opportunity to point out the importance of separating mobile advertising from the game for the fairness of both types of customers. Jude O’Connor, chief revenue officer for rival Ad Colony, said the deal “has the side effect of excluding another independent player from the means advertisers can take to reach consumers.” Said. She said there is a subtle line for advertisers between advertising with partners who have multiple strengths to leverage and bidding on a fully vertically integrated self-attribution black box.

Another rival, Chief Revenue Officer, Dave Simon, said in a statement: As we’ve seen, the combination of technology and service industries creates a trade-off between what’s good for consumers and what’s good for providers. Fully Vertically Integrated Content-Advertising-Mediation-Continuous integration by attribution companies can involve independent developers who trust the mediation layer to deliver the best results.

In a statement, Kunal Nagpal, general manager of InMobi’s publisher platform and exchange, said it would be interesting to see how game publishers feel about this shift. The work AppLovin does for game publishers in the advertising business.

Still, some of this was triggered by market conditions, such as Apple’s push to emphasize privacy over targeted advertising. As a result, game publishers like Zynga are now buying their own mobile marketing company, Chartboost. We can expect more gaming companies to start acquiring their own mobile marketing divisions and create more vertically integrated companies.

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AppLovin stirs up a mobile ad pot when buying Twitter’s MoPub for $ 1.05 billion.

https://venturebeat.com/2021/10/06/applovin-stirs-the-mobile-ad-pot-as-it-buys-twitters-mopub-for-1-05b/ AppLovin stirs up a mobile ad pot when buying Twitter’s MoPub for $ 1.05 billion.

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