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Twitter Thinks ‘Niche’ Will Help Them Boost Ad Revenue

Twitter is making a splash in video content.

Last month, Twitter announced that it would be establishing a native video player meant to take on the likes of YouTube, Facebook and Vimeo. As part of the new rollout, the microblogging network permits verified Twitter users to upload and share videos that are under 10 minutes.

In order to tap into the big-brand advertisers, Twitter acquired Niche, a New York-based startup that connects Internet celebrities with these very same advertisers. This has prompted news outlets to call Twitter somewhat of a social media talent agency. A move such as this will make it easier for advertisers to seek out online stars that are sometimes hard to locate for digital marketers.

The terms of the deal were not disclosed – media reports have pegged the number between $30 and $50 million – but the agreement boosted Twitter’s shares by 2.7 percent to $47.50 in after-hours trading. So far this year, Twitter stock is up 30 percent.

Twitter CEO Dick Costolo noted to Bloomberg News that this acquisition can help Viners gain bigger advertising revenues. “It’s absolutely the very beginning of providing monetization opportunities to the Viners. It’s just going to be awesome for the brands who want to leverage the great work these Viners do to create stories.”

Previously, the two-year-old Niche has partnered with Twitter and Vine. One of the projects they collaborated on was the Hewlett-Packard ad that was designed by an array of high-profile talent. Vine itself has produced a large number of celebrities who have developed intense followings by simply having a radiant personality or impeccable talent, a camera and Internet access.

Of course, this has paid off significantly for these stars and starlets because marketers want to cater to these men and women on YouTube, Vine, Instagram and so on. Niche does this by selecting the right celebrity that can target a specific audience. Niche generates revenues by receiving a percentage of the deal between the advertiser and content creator.

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