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By Me Yesterday: Twitter Buys India-Based Startup ZipDial to Tap Emerging Markets

Our main story at WSJ.com begins:

Twitter Inc. agreed to buy India-based mobile marketing startup ZipDial for an undisclosed sum in its first acquisition in Asia, as it seeks to tap more offline users in fast-growing emerging markets.

Countries like India, Indonesia and Brazil are key to Twitter as it tries to attract new users and advertising dollars, analysts say. Emerging markets are increasingly becoming an important part of Twitter’s growth strategy as it peaks in developed markets such as the U.S. and the U.K. In the three months ended September, Twitter reached 284 million monthly active users, about 77% of whom came from outside the U.S.

Bangalore-based ZipDial is known for its “missed call” marketing service, which allows consumers to dial a number for a company and hang up before connecting. The company in turn sends them free text messages containing advertisements and other content, like sports scores, without users incurring a charge.

A colleague and I also wrote this primer on ZipDial:

Twitter said Tuesday it is paying an undisclosed sum to acquire ZipDial, a Bangalore, India-based startup known for its success at “missed call” marketing.

Wait, what’s a missed call?

In India, many cost-conscious consumers use missed calls — they dial a number, let it ring, then hang up before connecting — to send a message, like “I’m running late,” to friends and family. A missed call is free, since callers are only charged when the other party answers.

What does ZipDial do?

ZipDial lets companies take advantage of this practice. The startup, which was founded in 2010 and has 56 employees, provides services that allow brands to advertise a number for “missed calls.”

For example, in one campaign for Colgate toothpaste, users could give a missed call to a special number shown on advertising banners in Mumbai, then receive a text message. Consumers would respond to that with their addresses, and then are sent a free sample of toothpaste.

ZipDial’s other clients have included the likes of Unilever, Procter & Gamble, Walt Disney and more.

Click through for more.

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