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Twitter (TWTR - Analyst Report) has recently renamed its Ads API Program that it unveiled a year ago. The rebranded platform is now called Twitter Marketing Platform Program. Moreover, a new website called “The Twitter Partner Marketplace” has also been launched.

The first five partners who have built on this platform and are offering Twitter advertising features to their clientele are Adobe (ADBE - Analyst Report), Salesforce, HootSuite, SHIFT and TBG Digital. As per the company, this rebranding became essential as over the years Twitter had managed to expand its network of partners much beyond advertising alone.

Twitter followed the footsteps of its rival, Facebook (FB - Analyst Report) by building a partner ecosystem. This program is only a part of the larger objective of highlighting the best products and services. The website is portrayed as a showcase for all its partners.

As spending on online advertising is expected to increase manifold compared to traditional media, Twitter has a massive growth opportunity, due to its strong mobile products. Mobile advertisement contributes approximately 70.0% to Twitter’s revenues.

According to market research firm, eMarketer, Twitter’s revenue share in the mobile advertising market is expected to increase to 4.1% in 2014 and 4.4% in 2015.

We believe that new products and services will attract new customers, going forward. Twitter’s ability to attract more advertising revenues, despite significant competition from Facebook and market leader, Google will be something to watch out for in the near term.  

However, higher costs and continuing investments on product development will hurt profitability, going forward.

Currently, Twitter has a Zacks Rank #3 (Hold).

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