Twitter’s Ratings Deal ‘Is Bigger Than Most People Thought,’ Says Research Firm

mobile, Web TV, social TV

mkabakov /

Twitter’s partnership with Nielsen to provide social TV ratings has been undervalued in the media and the tech industry, according to a Greencrest Capital presentation supporting its recent claims that Twitter is heading toward a 2014 public stock offering.

The partnership with ratings giant Nielsen, announced in mid-December, will gauge the reach of online and mobile conversations about television shows based on Twitter data.

“To the extent that Twitter becomes a place to go for ratings, it also becomes place for advertisers to go,” said Max Wolff, a senior analyst at Greencrest.

The Nielsen partnership positions Twitter to control a growing market share of the growing sector of social TV, opening the door to substantial revenue, according to Wolff.

The deal “gives Twitter real-time insight into TV programming” and “makes it more precise for Twitter to develop ad campaigns that will be accretive to major advertising partners,” Wolff said.

Further, by positioning the response on Twitter as an important driver of television ratings, studios, programs and stars will have a powerful incentive to participate on the social network, he said.

“It will make their Twitter incarnations the cornerstones of their ratings,” Wolff said.

Twitter will be worth $11 billion by 2014 if it can match its 2012 performance in the coming year, the Greencrest estimates. The firm does not believe Twitter has yet turned a profit.

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