Twitter, Inc. (TWTR) announced this morning it will begin beta testing a new feature called “Promoted Video,” which is aimed at brands looking to upload and distribute their videos to the Twitter network. The feature expands upon the previously announced Twitter Amplify program which is expected to allow content producers to upload, share and “measure the distribution effectiveness of their video content on Twitter.”

Twitter Amplify was more geared towards big media companies, while Promoted Video seems to be an attempt to reach a broader group of potential video advertisers. This morning’s blog post also said that the company is working to make it easier for advertisers to set up campaigns by running ads with a Cost Per View (CPV) buying model. Promoted Video testers will also receive access to video analytics, including completion percentage and a breakout organic versus paid video views.

An article on TechCrunch.com stated, “The move comes at a time when Twitter is working to show advertisers and investors that while its user growth figures are only slowly climbing, Twitter content actually reaches a larger audience thanks to views by non-logged in users.” Online technology companies have gotten heat recently in fears that the stocks may be overvalued. Some of these new products are undoubtedly an attempt to prove to investors that they aren’t just a website, and that they do have a solid business model. But do they?

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Jaclyn McClellan
ABOUT THE AUTHOR:

Jaclyn is an Assistant Financial Analyst at AAII. She is a honors graduate from DePaul University with a Bachelor's of Science in Business with a major in finance. She is currently a 2014 Level I Candidate in the CFA Program.

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