Twitter, Periscope

Twitter has recently been focusing all its attention on building out its live video strategy. Fresh on the heels of the release of the much-awaited Periscope Producer API, the company is now looking to monetize its growing population of live videos with short pre-roll ads. This is Twitter’s first attempt in over two years to make revenue from Periscope, by displaying ads both on live broadcasts and replays.

While the introduction of pre-roll ads, the micro-blogging platform is aiming to give both the creators and brands a chance to earn by monetizing their content and advertise to reach a wider audience respectively. These ads were previously limited to videos on Twitter but are now being extended to Periscope as well. Speaking on the same in the official blog post, Mike Folgner, Group Project Manager at Periscope said,

Pre-roll ads on Periscope video enable brands to marry their message with specific broadcasts from creators and publishers.

To make use of this new monetization opportunity, the brand advertisers have been provided the same features and tools they’ve been using to design their campaigns till date. Yes, you publishers can continue using the Amplify program to roll out your short video ads to Periscope videos on Twitter. Content creators, on the other hand, will now be required to select a small check box before starting your live stream to insert pre-roll ads in the beginning.

Twitter has decided to offer both content creators, as well as publishers, a similar 70/30 revenue split model on the ads running on the platform. These pre-roll ads can come in various formats, but you’ll have an option to skip the longer ones to jump into the live stream. But, you’ll miss a part of the stream if you continue watching the ad, that’s up to you. Further, Folgner continues to add,

The experience will mirror how ads currently appear on all Twitter video: when consumers scroll through their timelines or search for content from a specific publishers or creators, Periscope videos – live and replay – can start with a short ad.

Previously, Twitter was restricted to displaying ads during live streaming events, such as NFL Games or Game Awards, from select premium publishers. It even extended to Periscope videos through promoted tweets and other Amplify campaigns. But, the features are now available more generally across the micro-blogging platform.

This is a significant development for Twitter not only in terms of focusing on its live video strategy but also opening up another new revenue stream in time of dire need. The company has recently been witnessing a substantial decline in advertising revenue, which shows it also has other worries except stagnated user growth.

Turning to video ads could prove quite beneficial for Twitter as they’re costlier as compared to other formats. And live video streaming is a growing avenue that will surely attract advertisers, who will shell out premium prices to purchase that prominent pre-roll ad space during live events streaming on the platform. This will also give bored teens and creators to earn some bucks by streaming their lovely faces through the front lens of their cameras. Yes, we’re the camera generation and this move will further help move the needle for the said trend.

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