Twitter has recently introduced a 6-second viewable ad bid in an effort to further diversify its video advertising offering.
Details and Implications:
Twitter is introducing an option for advertisers to run video ads up to 15 seconds but only be charged should the video run for a full six seconds with pixels at 50% in-view. Whilst we would to like to see viewability improve to fall within our group standards, agreements are to be discussed with respective advertisers if there’s appetite to test performance. This option is now available globally on Promoted Video, In-stream Video Sponsorships and In-stream Video Ads for creatives up to 15 seconds.
This represents the first time Twitter is theoretically charging advertisers for completed views, especially if they create six-second assets. In a play for video ad dollars, Twitter is now giving advertisers the platform to really lean into short-form assets, coupled with the use of its new in-house content studio.
Advertisers will publish their video ads on Twitter as normal, but this new bidding option will enable advertisers to choose to be charged only if and when their video is viewed for 6 seconds. In its announcement, Twitter said: “With this, advertisers have the security of transacting on a longer view, while still providing the optimal experience of a short-form, mobile video to their audience.”
A recent report by EyeSee (a research company that produces studies of audience engagement based on advanced eye-tracking technology) and Twitter saw that short-form, under six seconds, no sound videos with distinct branding returned better ad recall and message association on mobile than linear TV-style videos. Though the 6-second or completed views may cost more, the trade-off is higher completion rates and hopefully an uplift in engagement rates.
Twitter’s ad revenue in Q2 2019 was up 21% year-over-year, bringing in $727m. Though Twitter hasn’t segmented its ad revenue, it did say in 2018 that video ads accounted for more than half of its quarterly revenue.
According to eMarketer, advertisers globally are expected to spend $2.97bn on Twitter ads this year, compared to the expected $14.41bn on Instagram ads and $67.37bn on Facebook ads. With digital ad spend continuing to grow, it’s no surprise that Twitter is introducing its new 6-second bidding option to keep existing advertisers and potentially reach new ones.