This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Twitter Namo Buy Challenges Google and Facebook in Mobile App Ads

NEW YORK (TheStreet) -- Twitter's (TWTR - Get Report) purchase of Namo Media may prove to be the bargain of the year.

Terms of the deal haven't been disclosed, but The Wall Street Journal cites an anonymous source saying it was worth less than $100 million, and TechCrunch reports its value is around $50 million.

So for a modest price Twitter gets a place at the biggest new revenue table in the online world, mobile apps, which also happens to be Google's (GOOG - Get Report) biggest headache.

A recent study from eMarketer, reported in Advertising Age, tells the tale.

As users switch to mobile devices, they stop searching on browsers and start doing it inside apps. The shift is already underway and should continue to cut into desktop ad revenues.

The eMarketer study throws the mobile apps into a category called "other." This basically consists of a host of single-purpose apps such as the Yelp (YELP) restaurant app and Priceline's (PCLN) Kayak app. It's this shift in traffic that explains Facebook's (FB) decision to spend $19 billion to buy WhatsApp. Facebook is following traffic.

Yelp and Kayak are just examples, however. The traffic is going through hundreds of apps. And it's these owners of the small apps who are flocking to agencies such as Namo Media to seek "monetization."

The mobile threat to desktops is growing rapidly. According to eMarketer people already spend more than an hour more each day using digital media than watching TV, and mobile is driving the shift.

Flurry, which runs the AppCircle mobile ad network, estimates users now spend 86% of their mobile time inside apps and that this has been increasing.

Gaming apps are the big winners, but Facebook is now taking 17% of mobile users' time, which is why that stock has been on a roll lately. Still, Facebook is less the consolidator of the mobile app ad space than the leader in an increasingly fragmented field.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $750.26 0.00%
TWTR $25.75 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
TSLA $231.61 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs