Twitter Inc. (TWTR) is rolling out in-stream video advertisements on its platform as people are watching more clips on their handheld devices. The company said video impressions grew significantly from Q3 to Q4 2016.
The San Francisco, California-based company has been recently experimenting with automatically promoting videos with high engagement from select publishers. Based on the success during a trial run in the U.S., it expects videos will offer an effective medium for marketers to reach out to their target audience. (See also: Twitter Loses 17th Executive in 12 Months)
The offering includes running in-stream video ads at the start and during other video content. In one study, Twitter users who saw a video ad were 50% more likely to become more aware of the promoted brand, had a 18% higher purchase intent, and felt 14% more favorable about the brand, compared to those who did not see the video ad, the company said. The micro-blogging site also said that video ads on Twitter are twice as likely to be remembered compared to the same ads appearing on other premium sites. The study was conducted with IPG Media Labs to examine the effectiveness of video within a social media feed.
The company said it will make investments in related technology with an aim to offer enriched experiences for consumers, publishers, and advertisers. It will announce more details on the initiative during the Digital Content NewFronts in New York scheduled for May 1.
While Twitter’s move to invest in technology appears positive, it comes on the back of a spate of problems faced by other leading online video platforms, such as placement of pirated content and inappropriate or offensive videos. Alphabet Inc.'s Google (GOOGL) faced suspension of ads by prominent advertisers like AT&T Inc. (T), Verizon Communications Inc. (VZ), and Johnson & Johnson (JNJ) as they claimed that their ads were appearing alongside YouTube content that promotes terrorism and hate. (See also: Verizon, AT&T Added to List of Companies Suspending Google Advertising)