Social media giant Twitter Inc ( TWTR ) confirmed its acquisition of New York-based advertising technology start-up Tap Commerce. Financial terms of the deal were not disclosed, though media reports indicated that the deal is valued at around $100 million..

Twitter’s business hinges on advertisements posted on its site alongside the tweets through smartphones and other mobile devices. Twitter (NASDAQ TWTR) has been under pressure to become a mainstream player and is striving to expand its user base, which is a key metric for such companies.

In recent months, Twitter has redesigned its mobile apps, websites and released features such as allowing image previews in the timeline and in direct messages. Earlier on Monday, Twitter announced the general availability of its mobile app promotion suite that will enable advertisers to drive a large volume of cost-effective app installs by reaching users directly in the Twitter timeline.

Twitter (NASDAQ TWTR): Acquisition of TapCommerce

The acquisition is part of Twitter’s broader strategy in mobile marketing that it started last year with its acquisition of mobile-ad exchange MoPub. Richard Alfonsi, vice president of global online sales, said in a blog post that together with TapCommerce team, Twitter will be able to offer mobile app marketers more robust capabilities for app re-engagement, tools and managed service solutions for real-time programmatic buying, and better measurement capabilities.

Tap Commerce does re-targeting, or targets ads based on previous user activity. It targets consumers who have downloaded an app to reopen and reengage with these apps. Twitter noted that TapCommerce enables real-time programmatic mobile ad buying across multiple exchanges reaching over 50,000 apps. According to TapCommerce, its demand-side platform now processes over 15 billion targeted ad impression bids each day, across 50,000 apps worldwide.

Twitter (NASDAQ TWTR) Business News

Twitter (NASDAQ TWTR) has seen its stock price drop nearly 40% this year as analysts fear the company is mired in stagnant growth in both users and ad sales.Those slowing growth numbers recently saw the departure of the Twitter’s COO Ali Rowghani and the promotion of Alexander Roetter to head of engineering in May due to his advertising experience. The capture of TapCommerce certainly brings in some hope for the revival of Twitter (NASDAQ TWTR)stock.

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