As Twitter prepares for its much-publicized initial public offering (IPO), questions remain about how much the social media giant will grow its mobile advertising presence.
Analysts point to concerns such as lower-than-anticipated revenue from MoPub, the mobile ad business that Twitter acquired for $350 million in stock before it filed for an IPO. In Securities and Exchange Commission (SEC) filings, Twitter revealed that MoPub had $6.5 million in net revenue for the first half of 2013.
Previously, the only gauge of MoPub's size in the marketplace was an estimated revenue "run-rate" of $100 million. "Just $6.5 million over six months? From a company that employs about 100 people? That's a shock to those observing the deal," Business Insider reported.
Comparatively, Millennial Media, one of MoPub's competitors, had net revenues of $45 million over the same half-year period on gross revenues of $106 million.
Still, Twitter is no slouch when it comes to mobile marketing presence. The company's percentage of advertising revenue from mobile reached 70 percent in the third quarter of 2013, up from 65 percent in its second quarter.
In addition, Twitter said in its IPO filing that it plans to expand its user base across geographies, develop and improve its mobile applications, and build and acquire new products. Twitter also plans to improve ad targeting capabilities, develop new advertising formats, and open up the platform to additional advertisers through the expansion of the self-serve platform in different geographies.
Twitter plans to price its stock at between $17 and $20 per share, and sell around 70 million shares.
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