Stars bring in dollar signs

With Niche purchase, Twitter finally understands its influencers’ power

Twitter has just acquired Niche, which it describes as a “service provider” for the growing “creative community” on Vine and Twitter. The company didn’t disclose the terms of the deal but Re/Code and Business Insider report it was likely between $30 million and $50 million.

Niche has built strong connections with the homegrown celebrities on Vine (and Instagram) by matching them with brands that want them to advertise their products. There’s other social media companies that do the same, profiting off networks of influencers on Instagram, Snapchat, Pinterest, Vine, Twitter, and Facebook.

For a long time Twitter was out of this loop of moneymaking. It’s a smart move for Twitter to buy Niche because in addition to generating revenue through the star-brand deals, the company also gets plugged into its own community of influencers.

As I wrote about in November, until recently Twitter largely ignored its Vine stars. Its competitors, like Facebook and Instagram, started courting them away in the process. Arguably the largest Vine star, Jerome Jarre, even jumped ship to focus on Snapchat.

With the Niche purchase, it seems the company has started to understand the importance and revenue potential of its creative talent.

One Response to “With Niche purchase, Twitter finally understands its influencers’ power”

  1. Ehud Barone

    This is a very powerful and smart move by Twitter. Twitter is now capable to start making money from its own users’ social influence. On the other hand, Pinterest isn’t there yet although it’s known that brands are spending more on Pinterest social influencers over Pinterest paid ads.

    The next natural big step for Twitter is to take this acquired product into the next step and turn it into an integrated ads system targeting ads to users based on their social influence. This way Twitter would benefit from:
    1) Loyalty and retention of social influencers – they would get special ads and unique incentives from brands (e.g. discounts, VIP invites, free trials)
    2) Everyone could be a social influencer – enabling any user and not just celebs become an influencer that gets special offers (see above bullet)
    3) Leverage Google partnership by offering brands social influencers based ads system which allows them to promote their Google search result ranking by targeting and generation word-of-mouth through social influencers (e.g. social signals)