Twitter Scores Possible World Cup Win

  • 2014 World Cup boosted Twitter’s Q2 revenue by $24M
  • Twitter has 267 million international users

A lot has changed for Twitter (TWTR +0.44%) since the last World Cup. Primarily the addition of video, along with a users ability to discover content that’s relevant to their interests. Will Twitter be the actual World Cup winner?

Why This Matters: The 2014 World Cup boosted Twitter’s second-quarter revenue by $24 million, according to MKM Partners. Some analysts predict this year’s event will be worth more and can affect results for the second and third quarters. At this point the company has a more refined platform and strategy, which means the event could deliver an even larger boost this time around. Black U.S. adults use Twitter more than any other ethnic group at 26%, according to Pew Research.

Twitter has exhibited its ability to shape global events and its head of content Kay Madati is helping make video profitable for the company. Madati recently announced 30 new video content partnerships. Video ad spending at Twitter is set to total $18 billion in 2018, according to eMarketer.

Through the social media giant’s deal with Fox Sports, the network will provide next to real-time highlights of every goal scored throughout the competition. “Video is a major area of strength for Twitter, already driving more than half of the company’s total ad revenue,” wrote JP Morgan analyst Doug Anmuth.

The company now has 69 million monthly users in the U.S. and 267 million abroad. It’s important to be aware that advertisers typically spend more to reach users in the U.S., compared with international markets particularly in developing areas.

Situational Awareness: Twitter is now generating nearly half its revenue from international markets, compared with just a third at the time of the last World Cup. This international audience is important given that the U.S. didn’t qualify for the competition.

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