Facebook has time and time again proved to be the king of social media. The social media war between the biggest companies Facebook, Twitter, and YouTube has been in the form of acquiring the largest share of the market and generating revenue from advertising. Twitter currently offers creators 70% of the revenue from ads generated from their videos. The high percentage of the pay from Twitter was meant to attract video stars to help build its video business.
The Industry analysts are, however, raising eyebrows about the pay structure being used by Twitter to a product being offered by its larger rivals. Twitter’s strategy raises the question whether the advertisers will have to pay more for the ads than on Facebook and YouTube. Twitter opened the video ad program last year for publishers and on Tuesday, it extended the program to individual creators who want to make money from the program the same way people earn on YouTube and Facebook.
The strategy by Twitter will be similar to what Facebook and YouTube are offering. Twitter will place ads alongside creator’s videos, and the creators will benefit from the 70% of the ad revenue and Twitter will keep the remaining 30%. While Twitter is paying better than its rivals, this strategy might not end up making more money for the company than its competitors. Reports indicate that advertisers are pressing Twitter to lower its video rates.
YouTube and Facebook offer creators 55% of the revenue. The recent push by the advertisers to force Twitter to reduce its prices may impact negatively to Twitter’s revenue, and the company may be compelled to reduce the percentage given to the creators. There is also the number of people targeted by these videos. Facebook and YouTube have more users and hence more people are expected to watch the videos than Twitter. Creators may be forced to make a choice between going to Twitter for higher revenue or remain on Facebook and YouTube for a bigger number of clients.
Twitters strategy is still a big idea considering it is a platform that will offer a supplementary revenue stream for creators. Producers stand to benefit even more because they have the option to place the same videos to YouTube, Facebook, and Twitter. It is yet another platform for diversification for creators which means more revenue for them.