Twitter’s Content Chief Sprinkles Black Magic on Ad Revenues

By CultureBanx Team

  • Twitter’s Q3 ad revenues surged up 29% to $650M

  • Kay Madati streamlined Twitter’s content strategy

The inability for Twitter (TWTR +1.76%) to make money has definitely changed since it posted four profitable quarters, following Kay Madati, Head of Content Partnerships coming onboard in the Fall of 2017 from Viacom (VIAB +1.01%) owned BET.  His strategy of partnering with pre-existing content providers to build sizable awareness and exposure for things Twitter users care about is paying off.

Why This Matters: Video has become increasingly important to Twitter’s business and Madati along with his team have been able to quell investors concerns over the company’s strong push into video partnerships primarily due to the increase in advertising sales. In its most recent quarter the social media platform reported ad revenues surged up 29% to $650 million. This is primarily attributed to ad sales on broadcasts from media companies like Live Nation, Major League Baseball and Major League Soccer.

Madati and his team have been able to quell investors concerns over the company’s strong push into video partnerships

Just this past summer Madati adopted a regional management structure rather than the previous one based on categories like news, sports and live video. This more streamlined content strategy enabled the company to broker deals with Will Packer Media, Disney/ESPN and Viacom.

Madati told Variety the immediacy of Twitter is perfectly astute and ready to be complemented by content providers’ product. He sees them as ideal partners rather than competitors. “We are not foes to the television or media industry, we are friends. And we back it up by putting data behind that around how the deals come together, what the opportunity is and how we all can make money together,” he said.

Situational Awareness: Twitter said the number of its daily active users rose by 9% year-on-year, even though this was the slowest growth rate in two years. It’s important to note that while user growth has been a bit lackluster, they’ve figured out a way to make more money per user than ever before. Ultimately, investors were continually looking for proof of concept that video ad revenues would lead to sustainable growth in revenue and profits and now they have it.

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