Twitter is adding another advertising product to its arsenal, this time rolling out videos in promoted Tweets as part of a beta program for advertisers.
Video ads are often more expensive than normal ads that have photos or just text because they are seen by advertisers to often be more engaging — getting the viewer to remember the brand or possibly go out and buy something related to it. Facebook, too, has a video advertising product, and it's an area of natural interest for any large platform like Facebook or Twitter.
Twitter's video ad product does not play automatically in a Twitter user's feed, however. The company will charge for the ad when a user taps on the video and watches it, which in theory would mean that the user is already interested in whatever is being advertised when he or she taps the ad. That means the ad could be even higher value to brands looking to promote something on Twitter.
The company has rolled out a number of new advertising products this year, including its own mobile app install ad product — which has been good news for investors. In its most recent earnings report, Twitter reported that its user base and revenue grew much more quickly than analysts expected, promptly adding billions in value to Twitter's market cap.