Investor’s Cheer Twitter Inc (NYSE:TWTR)’s Video Business Model

Posted by Chris Bell January 3, 2014 0 Comment 1928 views

Twitter Inc (NYSE:TWTR) stock jumped up close to 6 percent during trading yesterday on the back of the news that it was on the verge of tying up loose ends to offer video based advertising platform to its paying advertisers. The stock was trading at $67.5 per share when markets closed yesterday and was trading 9.6 percent below its high price point of $74.73 per share since it started trading publicly in November last year. With the latest fight back by the stock, Twitter Inc (NYSE:TWTR) investors have regained most of the losses they suffered in the last week of the previous year when due to news of analyst downgrades, the stock lost close to 17 percent of its market value in just two days of trading.

Move Towards Social Media Advertisements

These anticipated moves by Twitter Inc (NYSE:TWTR) represents a gigantic shift that is currently underway in the advertisement industry, where in advertisers are seen actively ear marking more and more of their ad budgets to video based ads in Social media at the cost of traditional TV advertisements. Readers should note that Twitter Inc (NYSE:TWTR) is not alone in trying to monetize the video based ad platform. In early December Facebook Inc (NASDAQ:FB) had launched its own version of video adverts which would get featured on users home page in the live feeds section.

Twitter Inc Follows Facebook Inc

These moves by the social media players indicate the huge growth that is being anticipated in the spending on video ads which can be customized and addressed to target customers by leveraging the latest in business intelligence and data mining technology. As per a report which was brought out by  eMarketer an online portal about e commerce, the ad spend in the video segment on social media is went up by 43 percent between 2012 and 2013 to level out at $4.15 billion and this is expected to further grow to a bigger chunk of $5.79 billion in 2014.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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