Twitter has never really been profitable. Despite its huge reach, massive usage, and relatively high value on the exchange, it’s not profitable. The way it is progressing, it won’t be for quite some time. Unless something big happens.
Researchers at EMarketer think that something is Amplify and that it will improve Twitter’s income by about 84 percent, to $1.1 billion annually this year. Twitter Amplify is the program begun last year that allows Twitter to get in on the multi-billion dollars in advertising revenues spent on television every year.
Basically, Amplify works like this: Twitter’s salespeople work alongside traditional representatives from high-end media content producers (e.g. the NBA, NFL, etc.) and offer a unique proposition of video highlights on Twitter sponsored by the advertiser to go along with their main event advertising.
In sporting events, these are basically highlight reels played after the full broadcast is complete. An example would be the fifty-eight second highlight reel of the U.S. Open Djokovic vs Nadal match sponsored by Heineken beer. The video received 18,000 views and Heineken saw a 71 percent spike in brand mentions that day.
Earlier this month, a similar ad-sponsored video tweet was sent by MTV after Zac Efron won the MTV Movie Award for “best shirtless performance.” This one got more than 100,000 views.
If Amplify continues to receive advertisers’ attention as a main event add-on, it could very well be what takes Twitter from red ink to black.