India Internet News
Twitter Acquires AdGrok Team To Work On Monetization Platform
01 June 2011
Twitter has purchased a group of a small Internet company whose supportive utilities control advertising campaigns on Google Inc, stepping up the microblogging site's effort to generate income.
Tuesday, AdGrok declared the procurement on its website stating Twitter requested them to work on a "monetization platform." The company told that it had served customers on Google's AdWords platform but would stop doing so by the end of June. His detailed comment says, "We're happy to announce that Twitter has acquired the AdGrok team. Starting today, we will be working full-time on Twitter's revenue engineering team."
A speaker of Twitter, Matt Graves, approved that two AdGrok team members were now working at the San Francisco headquarters of Twitter as part of the deal. Graves wrote in an email saying the third AdGrok co-founder has left Twitter and joined Facebook.
Although Twitter gave no information about the price, but, according to the tech blog Techcrunch, the deal was closed at below $10 million.
Twitter has been increasing efforts to create revenue under the leadership of new CEO Dick Costolo, presenting various methods for marketers to provide ads within the microblogging service. But the company's revenue growth has showed a delay on some of its online peers.
As per eMarketer study, Twitter is supposed to get in about $150 million in ad revenue this year, compared to Facebook's approximately $4 billion in ad revenue.
Twitter is a well-known social networking websites in addition to Facebook and Zynga, and is closely observed by sponsors thinking about a potential initial public offering. It even grant people to send 140-character text messages or "tweets" to groups of supporters.
By December, Twitter was worth $3.7 billion with a $200 million financing round led by venture capital industry Kleiner Perkins Caufield & Byers. An auction of Twitter shares on the secondary market in March recommended investors were estimating the company at more than $7 billion.