This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Twitter Namo Buy Challenges Google and Facebook in Mobile App Ads

Stocks in this article: TWTRGOOGYELPPCLN

NEW YORK (TheStreet) -- Twitter's (TWTR) 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) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs