Twitter Launching Ads For Logged Out Users

Shares of Twitter Inc TWTR spiked higher by more than six percent Thursday morning.
Twitter announced that it will now offer marketers the ability to reach over 500 million visitors to Twitter that do not log in to the platform.
Re/code noted that this is the ‘moment Twitters investors have been waiting for.'

Hundreds of millions of people end up reaching a Twitter page per month and do not log in to their Twitter account or do not have one in the first. As such, these users were out of reach for marketers to advertise their products to. On Thursday, Twitter announced a new initiative to reach the 500 million people who visit Twitter each month. In a

blog post

, Deepak Rao, Twitter's Product Manager, said that the company will test a new program in which marketers can now reach this large, previously untapped audience. Rao noted that marketers can now target people who click on links to Tweets in a Google search and offer branded, promoted content alongside organic Tweets. Related Link:

Twitter Having Best Day Since Early October "By letting marketers scale their campaigns and tap into the total Twitter audience, they will be able to speak to more people in new places using the same targeting, ad creative, and measurement tools," Rao stated. "Marketers can now maximize the opportunities they have to connect with that audience." Shares of Twitter gained more than six percent following the announcement, a move that shouldn't surprise investors, especially as Re/code stated this was the "moment Twitter investors have been waiting for." It should be noted that Twitter's announcement has been anticipated by many investors, including at least one notable Wall Street analyst. SunTrust Robinson Humphrey's Bob Peck

commented in a note

back in August that Twitter has several upcoming initiatives to boost user and engagement growth in 2016, one of which includes targeting logged-out users. Peck noted that Twitter's initiatives could result in a 45 percent growth in revenue and 65 percent growth in EBITDA. Accordingly, the analyst argued the risk to reward profile on Twitter's stock "ets up favorably" heading into 2016.

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