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Report: Amazon’s Twitch Not Meeting Ad Revenue Expectations

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Topline: While Amazon’s Twitch dominates the live-streaming landscape, a new report from The Information citing people familiar with company financials says it only translated into a modest $230 million in ad revenue for 2018 and a midyear annual projection of $300 million for 2019.

  • According to the report, Twitch was hoping to see ad revenues between $500 million-$600 million in 2019, with the service eventually hitting $1 billion.
  • Partnered streamers on Twitch share revenue from commercials, with the option of running ads at will with the push of a button during streams, but the majority of earnings for top streamers comes from premium subscription revenue that’s shared with Twitch.
  • The same is reportedly true for Twitch, which is now making more off “commerce” like subscriptions; along with its ad revenue, the company is hoping to hit $1 billion in 2020.
  • However, given the top streamers generally get the majority cut from subscriptions, Twitch sees a better profit margin on ads, according to The Information.
  • YouTube, in comparison, is thought to bring in billions off ad revenue alone, and according to Laura Martin, an analyst at Needham & Company, the service as a stand-alone business could be worth up to $300 billion after Google acquired it in 2006 for $1.65 billion.
  • Part of Twitch’s strategy is expanding beyond its gaming roots, with its variety “Just Chatting” category rising 42% to 651 million in total hours watched in 2019, ranking behind only League of Legends and Fortnite, according to analyst firm StreamElements.
  • Twitch remains far away the leader in streaming with 73% of the market share, according to StreamElements, but it’s being chipped away by YouTube (21%), Mixer (3%) and Facebook (3%), all of which have signed major streamers away from Twitch.

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Key Background: Top gamer Tyler “Ninja” Blevins set off a bidding war late last summer when he signed an exclusive streaming deal with Microsoft’s Twitch competitor, Mixer. Facebook, YouTube and startup Caffeine have since signed exclusive streaming deals with former Twitch stars. The moves have just slightly ate at Twitch’s substantial lead in the market, but the long-term impact could be substantial. Regardless, YouTube has a distinct advantage over all other streaming platforms.

No matter the content creator, after they’ve finished streaming for hours on end, they’ll generally make 10-20 minute highlight videos to upload to YouTube.

Big Number: $970 million. That’s what Amazon paid for Twitch in 2014.

Further Reading: Take a look at the major streamer acquisitions that took place late last year.

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I’m the reporter for the Games section of Forbes.com. I previously served as a freelance writer for sites like IGN, Polygon, Red Bull eSports, Kill Screen, Playboy and PC Gamer. I also manage a YouTube gaming channel under the name strummerdood. I graduated with a BA in journalism from Rowan University and interned at Philadelphia Magazine. You can follow me on Twitter @mattryanperez.

Source: Report: Amazon’s Twitch Not Meeting Ad Revenue Expectations

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Rubicon Project And Telaria Are Merging To Scale Connected TV Advertising

Rubicon Project and Telaria, two publicly traded ad-tech companies, are merging.

Two publicly traded ad-tech companies are combining to push deeper into video advertising.

Los Angeles-based Rubicon Project and New York-based Telaria have agreed to an all-stock deal that will leave Telaria stockholders with 47.1% of shares while Rubicon Project’s stockholders will own 52.9%. After news of the merger, which was announced today, Rubicon Project’s stock price rose by more than 7% to $7.75 shortly before markets closed. Telaria’s stock price also increased more than 11% to $8.39.

According to a combined statement from both companies, the merger will create the world’s largest independent sell-side advertising platform. Telaria, which was known as Tremor Video until it rebranded in 2017, brings an expertise in connected television to Rubicon’s programmatic platform. In addition to connected TV, the companies will let publishers continue to buy ads on desktop, audio, mobile and other video platforms across an increased geographic footprint that includes the Americas, Europe and Asia-Pacific regions.

After the deal is finalized, Rubicon Project President and CEO Michael Barrett will become CEO and Telaria CEO Mark Zagorski will become president and chief operating officer.

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According to Zagorski, the merger will allow the company to better compete with even larger players and also better position itself for the era of connected television—a sector of the ad-tech space that’s expected to grow in next year. Combined revenue of both companies was $217 million between the end of September 2018 and September 2019, a 32% increase over the same period between 2017 and 2018.

In an interview, Zagorski tells Forbes “the reason why this merger made so much sense is there are so many complements.”

“What was also really apparent though as we were building our businesses out was there was this huge demand for this single, one-stop shop both from a buy side and a sell side,” he says.

The deal, expected to close in the first half of 2020, comes at a time when a number of ad-tech and mar-tech companies are merging or selling with higher frequency. Some companies are selling to becoming tools within larger firms while others are merging to create the scale needed to compete with juggernauts like Google and Facebook.

Apart from the existing competition, ad-tech companies also face heightened regulatory scrutiny and uncertainty as lawmakers at both the state and national levels look into regulating how companies collect and use consumer data for commercial purposes including digital advertising. Next month the California Consumer Privacy Act goes into effect, and several other bills are being considered in Congress.

According to Barrett, the two CEOs met each other years ago soon after entering their respective roles. He said they were inspired by companies like The Trade Desk, another publicly traded ad-tech company that has scaled over the years. Barrett said a combined company of Rubicon Project and Telaria would “complete the pie.” It also allowed Rubicon Project to grow its video business.

According to Telaria’s most recent earnings, connected TV made up 50% of the business in terms of net revenue, while Rubicon’s was much smaller. (Zagorski says the combined company—which will have a new name sometime next year—expects on a pro forma basis to have a connected TV operation in the “mid- to high- teens as a percentage of business.”)

“Although we were doing well in video, we were nowhere in CTV,” Barrett tells Forbes. “Then you look at all the success that Mark and Telaria has had in a hot, strategic area.”

Finding connected TV opportunities is increasingly appealing to marketers looking to diversify their advertising budgets. And while Facebook and Google have been able to win the majority of new digital ad dollars spent on mobile and desktop platforms, programmatic TV advertising is still largely untapped. That’s led major networks, streaming platforms and cable companies to look for ways to collaborate on sharing and scaling data. For example, Viacom, NBC, Fox and Univision have joined a consortium called OpenAP, which lets them pool their data for audience-buying.

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I’m a reporter at Forbes covering marketing, advertising, and technology. Previously, I was a tech reporter with Adweek and before that covered politics in Alabama for The Associated Press.

Source: Rubicon Project And Telaria Are Merging To Scale Connected TV Advertising

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Before even running your ad campaign, you first need to learn about the “flows” which are the general game plans. This way, you’re not just giving money to Mark Zuckerberg and then crossing your fingers, hoping and praying that your ads will work. And because some of you might be using the FB ad platform for the first time, I also added the basics such as creating your FB page and Business Manager account inside – plus on how to get access to your partner’s or client’s page/s as well (great if you want to provide this as a service).

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Source: Social Video Ads Zoo

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The very first Ad at the Top of the page is our Featured Ad, which is very similar to a Solo Ad. It allows you to create a catchy Subject Line to get your prospects attention; it has the body of the ad where you can create your sales letter to promote your offer; and below the display window is a link to your Target URL your prospects can click on to go to your main offer.

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Source: http://featuredoffersxtreme.com

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Source: http://primetimetextads.info

 

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Source: https://adscrisp.com/special/?aid=1

How To Determine The Best Ad Channel To Use In 2018 | Online Marketing Tools

There are plenty of ways to advertise over the coming year, so council members have some recommendations for choosing the right channel for you.

Source: How To Determine The Best Ad Channel To Use In 2018 | Online Marketing Tools

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you
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Gucci Is Going Gangbusters Online, Leaving Louis Vuitton In The Dust | Online Marketing Tools

 

Gucci was named as 2017 Momentum Award winner in online retail traffic by SimilarWeb.com, being the only luxury brand in the retail category. A deeper look into what is driving Gucci’s online traffic shows very different strategies compared to its next closest online competitor Louis Vuitton.

Source: Gucci Is Going Gangbusters Online, Leaving Louis Vuitton In The Dust | Online Marketing Tools

AnimationStudio Comes Loaded With Industry Leading Features That Are not Available In Any Other App

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When it comes to getting clicks and conversions online, the competition is downright FIERCE. Business people, online marketers, site owners, and even bloggers need to stay on the leading edge to remain competitive, otherwise they will get crushed! Tapping into the power of animated video is a great way to stand out above the competition!

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