How Twitter’s Periscope can drive user growth
Twitter’s (TWTR) live-streaming app, Periscope, could well prove to be a differentiating factor in driving user growth for the company. Twitter is investing heavily in Periscope, as the platform is growing in popularity and driving more user engagement, owing to increased video usage.
Twitter stated that in the last 12 months, over 200 million broadcasts were created on Periscope and over 110 years of live video are being watched every day. So Periscope could help Twitter gain a considerable share in the video ad market, which is growing fast.
Why video will drive future ad revenues
Advertisers’ shift to online platforms, especially video, is leading to the rapid growth of the video ad market. According to a report from eMarketer and as the chart above shows, US (IVV) digital video ad spending could grow to $14.8 billion in 2019, reflecting a healthy compound annual growth rate (or CAGR) of 23%.
Periscope could be a powerful platform that allows Twitter to attract users. This change would increase engagement levels and, in turn, drive ad revenues. However, Twitter has some catching up to do. Presently, Google’s (GOOG) YouTube leads the video ad market while Facebook (FB) has also become more aggressive in leveraging this fast-growing market.