Twitter has been struggling financially for a long period of time and investors and shareholders are pretty concerned about the platform’s future. Back in January, Twitter’s CEO Jack Dorsey promised to take actions to turn things around and now, the social media platform has announced a new advertising unit for live streaming and video clips.
In an official blog post, the company confirmed that the ads can be aligned with highlights and live streams from its partners and news outlets. The company has noted that they will reveal more details regarding the new ad unit during its session at the Digital Content NewFronts in New York next month.
A recent report from the eMarketer revealed that the digital video ad market will reach net spending of over $77 billion by end of 2020 alone and understandably Twitter is planning on taking share of the up and coming revenue stream. The company noted that a recent analysis has found that users on Twitter are 50% more likely to be aware of the ads.
As mentioned earlier, Twitter’s CEO is planning on attracting more advertising revenue in the coming months. In January, he said, “While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we’re moving fast to show results.”
Whether the company will get the intended results or not is remained to be seen but if the company decides to introduce annoying ads in form of video, it might push users away from the platform.
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