Twitter has endeavored to enter the new ad niche. This company with over 330 million of monthly audience has had little success of capitalizing from its user base, and its decision to enter another market may seem as a reasonable one. At this point, Twitter shifted its focus to the news market by launching TicToc news streaming service, which allows the company to take advantage of the deep-pocketed business users.
While Twitter has lost the race for ad dollars to Facebook, it may have found another target to compete with – LinkedIn, a professional network that is owned by Microsoft Corporation. During a couple of years, this social network had a worker whose duties included tutoring and educating CEOs of large companies, including such people like Bob Iger (Walt Disney Co) and Lloyd Blankfein (Goldman Sachs Group Inc). Recently, Twitter has launched a 24-hour news service of news streaming in cooperation with the Bloomberg Media Company, which allows this social network to get access to a completely new ad niche. Moreover, such a service is able to attract both ordinary users and business people.
The new TicToc news streaming service is a result of a cooperation between Twitter and Bloomberg
This 24/7 news streaming service is called “TicToc by Bloomberg” and it streamed, for example, the discussion of Brexit by the Prime Minister of Great Britain Theresa May. That stream attracted more than 4,000 viewers at once. When the American House of Representatives voted on the tax bill (the proposition by President Donald Trump to decrease the one-time tax for capital expatriation) was also streamed on Twitter, gathering over 55,000 viewers. Updates of global news amassed hundreds of thousands of viewers more.
Neither Bloomberg nor Twitter have disclosed the agreements about the TicToc news streaming service. Yet, many observers point out that, typically, similar projects are based on sponsorship or ad revenues. At the present time, the TicToc project has 7 initial sponsors, including CME Groups Inc., a marketplace for trading derivatives, and AT&T, American telecommunications giant. Yet, Bloomberg also told that the company will probably open up to a bigger number of sponsors.
After the launch of the TicToc service, the shares of Twitter noticeably rose. Over the last 12 months, the shares of this company have risen up to 45%. And this occurred despite the fact that ad revenues have fallen down 8% during the same period. Yet, the price of shares is half of what it was at the end of 2013, after Twitter undertook an IPO.
Even though many business people and observers are excited to see Twitter partnering with Bloomberg, they are not sure whether it will bring any profit to the company. In particular, they claimed that it will be difficult for Twitter to compete with LinkedIn, as the daughter company of Microsoft is far better at providing analytics and measurements to the end customers.