Twitter (NYSE:TWTR) enjoyed healthy gains on Thursday after it unveiled a new initiative called Tailored Audiences, which would allow Twitter to use data shared by advertisers to retarget users and display more relevant ads. This would all be courtesy of browser cookies that advertisers use on desktop platforms. Twitter has been testing Tailored Audiences for several months, and preliminary data suggests that advertisers will see meaningful gains in engagement along with substantial cost savings.

There are privacy concerns that Twitter will have to navigate to avoid offending users, but if it can do so, then Twitter will strengthen its value proposition to advertisers. Twitter's advertising platform -- and overall business -- continue to mature and evolve, and Tailored Audiences is the latest evidence of that.

In this segment of Tech Teardown, Erin Kennedy discusses Twitter's latest move with Evan Niu, CFA, our tech and telecom bureau chief.

Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.