The explosion of video is a huge revenue opportunity for social networks, and
The microblogging site on Thursday said it is launching a test version of a new advertising product that makes it easier for marketers to buy video ad spots and for publishers to profit from video content. The product works through an automated process: Content creators upload their videos to Twitter, and brands target categories of videos in which they want their pre-roll ads to run. Publishers are paid the majority of the ad revenue -- 70% -- and brands can choose to target specific types of users on Twitter, for example, based on their age or interests.
The product is an extension of Twitter's Amplify product, which launched about two years ago to make it easier for brands and publishers to create campaigns together featuring instant replays from heated sports games or what favorite celebrities are wearing on the red carpet. Both Twitter and marketers love the product, as it has generated plenty of revenue for the company and raises awareness around brands. Twitter created an automated version of Amplify in May to make it easier for brands to deliver video highlights to users through promoted tweets, Twitter's version of native advertising.
"We’re announcing a new offering for Twitter Amplify designed to let many more publishers and creators monetize their video content on Twitter, while making it easier for advertisers to reach massive audiences and sponsor great content," Twitter's senior product manager David Regan said in a blog post. "With this update, advertisers can run video ads against premium content automatically based on their preferred content categories — without having an existing publisher-advertiser deal in place."
"With this expanded version of Amplify, we’re excited to help people enjoy more great video, publishers drive more revenue and brands align with the best mobile video moments, all at scale," Regan added.
The test of the new ad product is currently available to select publishers and brands in the U.S. Twitter plans to expand the program globally over time. Amplify campaigns have run in more than 20 countries, the company said.
Forecasting firm eMarketer predicts that Twitter's U.S. ad sales will increase 57.2% to $1.30 billion in 2015 from a year earlier. The firm expects Twitter to capture 2.2% of total digital ad dollars in the U.S. this year, up from 1.7% in 2014. On Monday, Twitter announced that Square CEO Jack Dorsey is the social network's new permanent leader. Dorsey, a Twitter cofounder, served as CEO of the site from 2007 to 2008 and is tasked with reviving the product and reversing sagging user growth. Former Twitter CEO Dick Costolo stepped down in July after months of investor discontent.
