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Twitter to start sharing video advertising revenue

twitter e1473081487519

Twitter to start sharing video advertising revenue

Microblogging site Twitter has recently announced that it will start to share the advertising revenue it generates from videos with the individuals who created them.

Previously, any revenue the platform has gained from video advertising has only been shared and distributed among its corporate partners, including the likes of CBS and the NFL in America.

It is believed that the popular social site has been targeting video advertising and has pushed to feature more videos on its platform in a bid to gain more users and drive engagement on the site. This is part of its battle plan to combat its fierce social media rivals Snapchat and Facebook, which pride themselves on their video prowess.

For the time being, Twitter will only be making its revenue sharing scheme available to Twitter users in its native USA. At this early stage, it is unclear about whether the company plans to make this scheme a worldwide thing.

The announcement was made on the Twitter corporate blog, in which the company explained that it would be allowing all its video creators to “generate revenue at scale”. Despite the announcement, the percentage of revenue that would be set aside to be shared with the video creators was not revealed. However, it has been reported that the company planned to give as much as 70% of generated revenue to the relevant individuals.

Twitter may need to pull out all the stops in this campaign in order to draw level with more video-centric competitors such as Facebook and YouTube, so it is logical for it to offer such a large proportion of the revenue to creators. To put this figure into perspective, YouTube, arguably the largest video site online, shares up to 55% of the revenue it generates from video advertising with the videos’ creators.

According to the Twitter blog, approved users from the US will be given the option to tick a box when they upload their video content, which will grant the site permission to play adverts before the videos are run and allow them to be part of the revenue share scheme.

Twitter has also recently changed the maximum length of videos, by increasing it from half a minute to 140 seconds long. It has also increased the number of livestreaming events across sports, news, and entertainment.

The company has been faced with some tough times recently, with shares in the site falling by 0.6%. However, it is believed that revenue for the second quarter of the year rose by 20%.

Alan Littler
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