Boston, MA 04/07/2014 (wallstreetpr) -Twitter TV is one of the medium to understand the relationship between TV and social media. These products do not generate revenue directly for Twitter Inc (NYSE:TWTR), but it will attract more users and advertisers. So, the Company is expanding this product with different partners across geographies. In the U.S. Twitter partnered with Nielsen for the Nielsen Twitter TV Rating (NTTR). NTTR expanded to Italy and Australia. Recently, Twitter partnered with Kantar for the UK and Spain, with Video Research for Japan and GFK in Germany, Austria and the Netherlands.
Impact
Twitter TV rating will measure total activity related to TV programs and their conversation on Twitter Inc (NYSE:TWTR). It will assess both the authors and the audience who view the tweets. But, currently, number of tweets and authors are measurable and yet to explore the audience who view those tweets. It is believed that audiences are 50 times more than authors. It also attracts a larger number of advertisers into TV networks. So, the market seems to have larger user base for TV related activity on Twitter.
Twitter’s gain
Twitter generates revenues majorly from advertising that represents more than 75% of total revenues. It provides a platform for a broader range of advertisers with a different set of products.
The Company calculates advertising revenue per active user based on average Monthly Active Users (MAUs). MAUs are increasing with more activities occur over the tweets that drive revenue for the Company. As of December 31, 2013, Twitter’s average MAUs were 241 million, up by 30% YoY. Mobile MAUs accounted 76% of total MAUs and was increased by 37% YoY to 184 million. During 4Q2013, advertising revenue per thousand timeline views has improved significantly to $1.49 due to 26% YoY increase in timeline views.
Outlook
Twitter Inc (NYSE:TWTR) continues to improve user’s experience through new products such as Twitter TV. The Company expects future growth from such products having larger number of audience. It is believed that the Company expects growth in MAUs for advertising and anticipates revenue of $1.15 – $1.20 billion in future.
