Twitter Inc (TWTR) Explores Advertisement Opportunities Outside Its Social Network, Partners With Flipboard And YAHOO JAPAN CORP (YAHOY)

The shares of micro-blogging site, Twitter Inc (NYSE:TWTR), jumped in excess of 6 percent after the social network announced partnership with Flipboard and YAHOO JAPAN CORP (OTCMKTS:YAHOY) for a new advertisement initiative. The micro-blogging site would display its adverts on the mobile apps of partner companies.

Twitter has struggled recently with its revenue streams and this new partnership will picture the company as a strategic advertising platform that extends beyond its social network. While talking about its recent partnerships, Twitter Inc (NYSE:TWTR) said,

“We’ve been thinking a lot about how we can take the rich canvas of the Promoted Tweet and extend it beyond Twitter, to all the places where Tweets go today. That’s why we’re pleased to announce our first partnerships to syndicate Promoted Tweets outside of Twitter: with Flipboard (@flipboard) and Yahoo! JAPAN.”


At the same time, the micro-blogging site gave an idea of its reach on different platforms with the social network getting up to 185 billion Tweet impressions in its third quarter 2014 itself. Twitter is going to announce its fourth quarter 2014 financial results tomorrow and this partnership might keep investors interesting even if the social network company falls short in earnings expectations.

In addition to it, Twitter Inc (NYSE:TWTR) mentioned the benefits of this new alliance while discussing about the existing syndication of Tweets on different third-party apps and websites. The company added,

“Combine that with the flexibility and control of a Promoted Tweet, and we think marketers will have an almost infinite capacity to create large-scale, rich and well-targeted advertising campaigns across a variety of platforms.”

Market experts are considering it an excellent initiative towards the monetization of the micro-blogging site. Robert Peck, SunTrust Robinson Humphrey analyst, said,

“Further, we think as Twitter signs more business development deals (Biz Dev) like these (both new and/or extensions of existing relationships like Flipboard or maybe an ESPN), that not only will monetization accelerate, but MAUs as well (particularly “Automatic MAUs”).”

This article has been written by Prakash Pandey.

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