Twitter, says Debra Aho Williamson, an analyst at research firm eMarketer, ``creates a community, a bond between people''.
NEW YORK: Americans don't just watch TV anymore; they talk about it on
Twitter. From the comfort of couches, they share reactions to touchdowns
and nail-biting season finales _ and advertisers and networks are taking note.
Examples of Twitter's influence abound. The recent finale
of ``Breaking Bad'' generated a record 1.24 million tweets. The
conversation peaked at 22,373 tweets per minute according to analytics
firm SocialGuide. People used the hashtag ``GoodbyeBreakingBad'' nearly
500,000 times. During this year's Super Bowl, sports
fans generated 24 million tweets about the competition and nearly half
of the game's nationally televised commercials contained hashtags that
encouraged viewers to tweet.
Twitter, says Debra Aho
Williamson, an analyst at research firm eMarketer, ``creates a
community, a bond between people that doesn't really exist without
Twitter.''
As Twitter prepares for its initial public offering,
the San Francisco-based company is also working hard to insert itself
into the TV advertising economy. In recent months, the social networking
company has forged partnerships with television content owners such as
CBS, MTV and the NFL
through a program it calls Amplify. The platform lets content owners
beam real-time video clips to Twitter users who may have seen _or could
be interested in _ their TV programming. It also allows marketers to
communicate with viewers who saw their TV ads, extending commercial
pitches to consumers' smartphones and tablets.
TV tie-ins allow
Twitter to diversify its revenue stream beyond the relatively small
niche of digital advertising campaigns, a move that should appeal to
potential investors. On Thursday, Twitter unsealed documents for a Wall Street
debut that could take place before Thanksgiving. While the company did
not reveal how much money it makes from its TV partnerships, it touted
its own ``strength as a second screen for television programming.''
Twitter wrote in its S-1 filing with the Securities and Exchange Commission that ``45% of television ads shown during the Super Bowl used a hashtag to invite viewers to engage in conversation about those television ads on Twitter.''
Twitter's public nature makes it an especially attractive platform for
tracking live-TV conversations. So much so that Nielsen recently began
using Twitter's data to measure online social activity around TV
programming, starting with this fall's TV season.
Nielsen will
release its first ``Nielsen Twitter TV Ratings'' report on Monday. The
study measures TV-related conversations on the social network. Nielsen
found that in the second quarter of this year, 19 million people wrote
263 million tweets about live TV events, up 38 percent from a year
earlier.
Some 19 million people tweet
about TV shows, a 24 percent increase from last year. The audience
measurement firm also found that many people read tweets about TV shows
while they watch them _ even if they don't post anything themselves. As a
result, Nielsen says the Twitter TV audience for an average episode is
50 times larger than the number of people who are Tweeting about a show.
Separately, Nielsen found that the ``Breaking Bad'' finale was by far the most tweeted-about program last week.
On Sunday, the NFL showed just how Twitter-enabled promotions work. Minutes after Cincinnati cornerback Adam Jones intercepted New England's Tom Brady,
ending the quarterback's streak of 52 games with a touchdown pass, the
NFL posted a video clip on Twitter. The clip shows Jones bobbling, and
then snagging the ball before it hits the ground.
The 32-second clip was prefaced by an 8-second video ad for a Verizon
Droid mobile phone. ``Adam Jones ends the Pats undefeated season,
Brady's TD streak AND a rainstorm. With 1 INT,''
the league tweeted.
By inserting itself into the online buzz, the
NFL was able to remind people
the game
was going on live at its NFL Network channel. Meanwhile, it earned new
revenue from Verizon, a longtime sponsor that wanted to showcase its NFL
Mobile app.
The NFL has more than 5.1 million followers on Twitter. But its new partnership with Twitter means the
tweet also went out to millions of other users who might be interested.
Hans Schroeder, the NFL's senior vice president of media strategy and
development, says he expects promoted tweets will eventually reach tens
of millions of fans, multiplying its reach.
``We think it'll drive tune-in to our games and drive more people into the experience through NFL Mobile,'' Schroeder says.
As part of the deal, Twitter shares some of the revenue from Verizon's
advertising spend when the phone company pays for ``promoted tweets.''
Previously, the money might have gone only to the league itself.
Twitter's projected 2013 revenue is about $582 million, according to
research firm eMarketer. At the moment, the company generates tens of
millions of dollars of revenue from all of its TV deals, including those
with ESPN, Turner networks,
CBS and others, according to Brian Wieser, an analyst with Pivotal Research Group.
That's not huge. However, says Wieser: ``This year, it's about getting the foot in the door.''
Wedbush Securities analyst Michael Pachter estimates that Twitter gets
just a small fraction of its revenue from the TV deals _ around 1
percent. But by next year, the deals could amount to 5 percent, and 15
percent the year after, he says.
Twitter isn't alone in its
quest to befriend TV content companies. Facebook, too, is recognizing
the value of live TV chatter. Because of its sheer size _ nearly 1.2
billion users versus Twitter's 218 million _ Facebook has more
conversations than any other social network. During the ``Breaking Bad''
finale, more than 3 million people generated 5.5 million ``interactions,'' that is, status updates, comments or ``likes.''
For now, Facebook's TV partnerships are not intended to generate
revenue, the company says. Rather, they are ``focused on helping people
discover great content,'' says Justin Osofsky, Facebook's vice president
of media partnerships.
Over the past few months, Facebook has
rolled out more Twitter-like features as competition between the world's
leading social
networks
heats up. There are now hashtags on Facebook, and the company is
encouraging celebrities to use its site to interact with fans _ just as
many of them do on Twitter.