Twitter's plans to expand live streaming of major sports events, reported by Recode, is a much-needed strategy if the company hopes to regain its luster on Madison Avenue. Among 13 leading digital media companies, Twitter ranks 11th for offering innovative and creative opportunities and 12th among senior advertising decision-makers for providing engaging content worthy of premium pricing, according to a new survey of advertiser and agency executives conducted by MyersBizNet.
Recode reported that Twitter is "in talks with the NBA, Major League Soccer and Turner to acquire digital streaming rights for live sports and sports-related events."
Twitter recently reached an agreement with the NFL to stream football games and other related NFL content.
Recode also reported two weeks ago that Twitter had sold 60% of its 10-15 NFL packages, potentially generating $50 million in ad revenue. Content costs are an estimated $10 million. While Twitter generally maintains a strong relationship with advertisers, recent upheaval in the company's management has created uncertainty. Twitter has struggled to establish a clearly defined brand and advertising value proposition, as Facebook, Google and YouTube have enhanced their presence and leadership.
Amazon, Hulu, Snapchat, Buzzfeed and Aol have also ramped up their offerings and surpassed Twitter in perceived value, creativity, low fraud environment, responsiveness, and engaging content, according to the MyersBizNet survey. Fewer than half of advertiser and agency executives with digital advertising responsibility rate Twitter positively for "engaging content/environment justifies premium pricing." Buzzfeed ranks first among the 13 leading companies for engaging content, with nearly three-quarters of respondents to the MyersBizNet survey rating the company positively. Hulu, Snapchat, Facebook and YouTube all generate 60% + positive responses in the category.
While the Twitter brand retains strong cache in the ad community, the investment in streaming rights to leading sports franchises should be a positive game-changer for the company as its competitors capture a larger share of digital ad budgets. Only 38% of ad execs surveyed by MyersBizNet currently rate Twitter positively for "providing innovative and creative opportunities."
In the next four weeks, Jack Myers TomorrowToday will be publishing highlights from the detailed results of the annual MyersBizNet Survey of Advertising Executives on Digital Media Company Value and Performance (available to all MediaVillage.com premium member companies).
For more information on MyersBizNet reports, including full methodology, contact John McMenamin, COO, at email@example.com.