Recent deals by Twitter (noted here ) show that the social media giant is getting serious about content and expanding past the original 140 character limit imposed by the company. Since 2010, Twitter allowed advertisers to use their social network on an invite-only basis. Only recently did they open their doors to all public advertisers including large and small businesses alike. This is an enormous change for the social network that will hopefully generate upwards of 1 billion in advertising revenue for 2014.
Many social networks these days are working to expand their advertising footprint. Facebook has been targeting advertising revenue since its early inception and it now represents more than 80% of their total sales. Twitter is largely interested in the massive amounts of additional data that advertising will generate. The analytical potential is exponential, allowing advertisers to strategically place their ads to maximize their return.
ESPN recently struck a deal with Twitter that will bring TV content directly to the social network. ESPN will be featuring sports highlights via Twitter that will be ad supported. Users will be able to view the latest sports clips without having to leave Twitter.com or the associated app. Last fall, test clips from certain football games received over 7 million views. More views, in turn, generate more traffic and thus more revenue for Twitter. The revenue potential is obviously there. Twitter has been actively trying to cut deals with the other major TV networks as well.
How much more potential do you think really lies within the social media advertising space? What are some other potential revenue streams that social networks like Twitter can take advantage of? Following the ESPN deal, what other types of TV content would are using interested in watching? News?