Twitter Inc. (NYSE:TWTR) Wins Large Video Ad DealDate Published: 2016-10-04
Author: Ophir Gottlieb
Twitter Inc. (NYSE:TWTR) just announced that it has won a large video ad deal, and circumstantial evidence points to another win with political ads.
The CW network together with Ford Motors Inc. (NYSE:F) have signed the first ever Twitter Inc. Amplify upfront video ad deal according to Yahoo! Finance via CNBC.
On the latest Twitter Inc. earnings call, the company noted that video had become its largest advertising revenue driver even though it didn't exist a year ago. This deal with the CW and Ford marks a landmark -- it's an upfront deal and this is how it will work (emphasis added):
Twitter Inc. (NYSE:TWTR) has had several deals through its Amplify video ad product, but according to Mike Park, the director of content partnerships and Amplify, Twitter Inc. has never signed a deal of this size before. That comment is critical because the NFL deal with Twitter Inc. was also through Amplify, and as far as the world has been told, that deal will generate $50 million in video ad revenue.
While news stories fill our feeds with stories proclaiming the death of Twitter Inc. and its slipping relevance, Christina Norman, CEO of media agency Media Storm, said pretty much the opposite. Here's her take:
Before we conclude this dossier we also want to point out that we have collected circumstantial evidence that political ads were purchased on Twitter Inc. and were rather targeted. Check out this poll from @OphirGottlieb (the author):
We can see that Twitter users basically either saw no ads, or they saw a ton of ads. That points to very specific ad targeting, which is the crown jewel of the marketing world. Given this circumstantial data for Twitter Inc. (NYSE:TWTR) and the news surrounding the new large video ad deal, it does seem like Twitter Inc. is gaining momentum.
The author is long shares of Twitter Inc. (NYSE:TWTR).
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