SnappyTV To Boost Twitter Engagement Levels

  • Twitter has announced the acquisition of SnappyTV, a provider of tools for real time edit of live videos.
  • The acquisition is aimed at integrating SnappyTV tools with Twitter amplify, in order to boost engagement rates on the social platform.
  • A more engaged user base could bring higher value to the social platform, which could go a long way in sustaining Twitter’s extraordinary revenue growth rate.

Twitter acquires SnappyTV

Yahoo has been on an acqui-hire spree for close to two years and Google took ahead its acquisition strategy as it swallowed down two more start-ups yesterday (June 19). Facebook, the king in the social network space recently flexed its financial muscle gobbling up Whatsapp and Oculus VR. We certainly have reached a stage where acquisitions have become a norm in the internet and tech space.

Twitter (NYSE:TWTR) too has added a few to its flock, with the latest entrant being SnappyTV. Attached below is a tweet from Kevin Weil, VP of Product for Revenue at Twitter, confirming the acquisition of SnappyTV.

Tweet announcing SnappyTV acquisition

Following the Namo Media acquisition to boost native advertising on the platform, Twitter has now decided to add the flair of live video to tweets posted on the platform. While the terms of the deal are yet in the dark, a confirmation of the deal is posted on the Twitter blog as well as the SnappyTV blog. So let’s understand what SnappyTV is all about and how can it take Twitter’s monetization strategy ahead.

SnappyTV: A platform for live TV clipping, editing & distribution

SnappyTV is a tool which enables a user to clip and edit live TV streams, clips which can then be shared on the internet. The tool is already used by various media partners of Twitter, as mentioned by Twitter in its blog.

Snappy TV’s platform for live clipping, editing, and distribution is already widely used by brands and our media partners to share video clips on Twitter, both organically and via Twitter Amplify. Together, we’ve worked with the biggest content partners in the world to inject the best video content into Twitter’s real-time conversation, straight from the TV to your mobile device.

The tool enables an advertiser/partner to edit live content and focus on a high-impact excerpt from the content rather than the entire content. The high-impact excerpt can then be posted to Twitter through Twitter’s amplify platform. The result is heightened activity among Twitter users in the form of tweets and retweets. An example of a tweet with a video clip is attached below.

Tweet with a video

Tweets just got richer. The acquisition is aimed at integrating SnappyTV with Twitter Amplify and bringing a real-time aspect to videos posted to Twitter’s platform. The result will be users being able to watch clips in real-time from live video feeds. Users, who were until now engaged in real time conversations can also, watch a video clip which has been hashtagged (#) with the relevant topic.

The result is clear. A more engaged user creates more data which leads to better targeted advertising. Better targeted advertising on the platform will lead to more number of advertisers willing to pay a higher price for advertising and voila, you have revenue growth!! That is what we think SnappyTV acquisition is all about.

Twitter acquisition strategy aimed at sustaining topline growth

In conclusion, Twitter seems to be spot on with its acquisition strategy. The acquisition of MoPub ad exchange helped Twitter align itself for ad sales on the mobile platform while the Namo media acquisition will attempt to find a balance between revenue generation and user experience through its focus on native advertising. With user experience taken care of and a mobile ad exchange set in place, Isn’t it time to bring in more advertisers and better prices? Well that’s precisely where SnappyTV helps. A more engaged user base could be a game changer for Twitter. SnappyTV could go a long way in helping Twitter sustain its growth rate extraordinaire for a longer period of time.

The move to acquire SnappyTV is a smart one from Twitter’s management. However, a question to ask as a twitter investor is whether these ‘right’ moves are enough to justify the current valuations and earnings growth priced into Twitter’s stock price. At a last twelve month price-to-sales multiple of close to 28, Twitter currently trades at ‘scary’ levels given its almost non-existent bottom line. We would rather sit out a bull run in this stock than stay invested with the huge risks currently associated with the stock. Happy investing!! And keep reading for the latest updates on your favorite internet stocks.

To see Twitter’s latest stock price movement, click here (NYSE:TWTR)

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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