Twitter’s 70/30 revenue split is better than YouTube’s deal.
Online influencers will now share in revenue from preroll video ads.
It’s getting easier to make money on Twitter.
Twitter Is Offering Influencers a New Way to Make Money on the Platform
Adding preroll ads ‘as simple as checking a box’
The social network announced Tuesday morning that it is opening up its monetization tools to creators. This means that pre-approved creators in the U.S. will now be able to share in revenue from ads that run ahead of their videos.
According to ReCode, Twitter wants the kind of video creators YouTube has — and the massive audiences that come with them.
To make this dream a reality, the company is pulling a page from YouTube’s playbook: It’s going to sell ads alongside creator videos and share that ad revenue with the people making the content. And Twitter is offering very appealing terms.
Unlike YouTube, which gives 55 percent of the money to creators and keeps 45 percent, Twitter is using the same revenue split it already offers other Amplify video partners, like the NFL: 70 percent to the content creator and 30 percent back to Twitter, according to a person familiar with the arrangement.
Of course, Twitter needs to offer an appealing revenue split like this. It’s nowhere close to the video destination YouTube and even Facebook have become, and it’s late to the game when it comes to paying creators. The network’s high-profile stars have wanted a revenue split for some time — it’s been a point of contention for the company’s stable of “Vine stars,” many of whom have left for places like YouTube where their videos actually make money.
So even with an appealing offer, it’s unclear whether Twitter will be able to entice creators and viewers who already think of other video platforms first, or if the move is too little too late.
A few more details about Twitter’s update:
- Twitter already offers this same revenue split to some premium content creators, like the NFL. But this move is for YouTube-style stars, and also automates the process — approved creators simply click a rev-share button when they upload their video.
- The revenue split only applies to video on Twitter, not its other video properties, Vine and Periscope. At least not broadly. (Vine started experimenting with a similar program back in June). Expanding it to those other platforms is a logical next step.
- Twitter is not requiring content exclusives as part of the deal. That means creators can post the same video to Twitter that they also post elsewhere.
- Twitter will not provide any advance funding to creators as incentive for trying the program. This isn’t a shock. While Facebook has been paying all kinds of users to use its livestreaming feature, Twitter has refused to pay people (at least publicly) to use its own broadcast tool, Periscope.
- Anyone can apply for the program beginning Tuesday, though it’s only open to U.S. users.
According to VentureBeat, Twitter is rolling out a new way for content creators to monetize their videos and work across the platform. The company’s Amplify Publisher program now supports the inclusion of pre-roll ads to videos, while its Media Studio and Engage apps have received updates designed to make uploading, managing, and publishing media more efficient.Originally geared toward publishers, the Amplify program allows premium quality videos to be uploaded to Twitter. Once uploaded, users need to check a box prior to tweeting, and a pre-roll ad will be inserted into the video. Twitter claims to provide opt-in controls, letting creators choose which videos will be impacted by this placement, tweet by tweet. Additionally, there’s a non-exclusivity clause, meaning that content shared on Twitter can also be monetized on other platforms.
For those distributing videos through Twitter, the company promises a revenue share arrangement of a 70/30 split in favor of the creator, a similar model to that offered to publishers. It’s not surprising that videos are a big part of any company’s social media strategy, and Twitter certainly doesn’t want to be left behind in the ongoing battle with its competitors. It’s already capitalizing on broadcasts of sporting events and other events of national interest, but now it’s looking at individual creators and how to get them to buy into Twitter’s strategy.
The move will likely be welcomed by advertisers who have been chomping at the bit as they waited for a way to attach their ads to content aimed at a targeted audience. Of course, with a limited supply of created content, the cost per ad might be higher than if there were a steady stream from which to choose. It’s safe to imagine that the earlier creators to subscribe to this program could win out.
With the launch of this effort, Twitter is really digging deep to capture the influence of creators, something that YouTube first did years ago. But even withNiche on its side, Twitter has an audience questioning what the company can offer it over Facebook, Snapchat, and YouTube. Since its acquisition in 2015, Niche now counts more than 35,000 creators worldwide, as well as top brands, all eager to produce branded content that they can monetize.
For Twitter chief executive Jack Dorsey, this community represents one of the five priorities he wants the company to address this year. Efforts — such asopening up Moments to more creators — are slowly being made in the hopes that this influential group can really showcase what Twitter is all about and drive old and new users to the service.
To support creators, Twitter recently launched desktop and mobile apps that provide resources for publishing media and engaging with fans. On both its Engage and Media Studio tools, creators will find a unified media library that displays not only videos, but images and GIFs, as well as a way to schedule and plan tweets. It also offers collaboration features that support team workflows. And Twitter’s Engage app has a specific new section that lets creators track their earnings.
At the rate Twitter is going, it’s perhaps only a matter of time before we start to see this program not only opening up worldwide, but perhaps expanding to other video areas — as Vine and Periscope have done — so creators can start to monetize everything around live conversations.