Home  › Media › Video
YouTube is the world's largest video-sharing website

If YouTube Acquires Twitch, Will Digital Marketers Benefit?

  |  May 22, 2014   |  Comments

How will those in the digital marketing ecosystem be affected by YouTube's acquisition of Twitch, the leading gaming platform?

Most marketers have seen the reports that YouTube will acquire Twitch, the world’s leading video platform and community for gamers, for $1 billion. So, what would this mean for YouTube if or when it happens? And, more importantly, will digital marketers see any benefits?

Let’s begin at the beginning. Todd Spangler, New York digital editor of Variety, broke the story, entitled "YouTube to Acquire Videogame-Streaming Service Twitch for $1 Billion: Sources," on Sunday afternoon, May 18, 2014. He wrote, "Google’s YouTube has reached a preliminary deal to buy Twitch, a popular videogame-streaming company, for more than $1 billion, according to sources familiar with the pact. The deal, in an all-cash offer, is expected to be announced imminently, sources said."

Well, it’s now Thursday morning, May 22, so apparently "imminently" doesn’t mean "in a New York minute." Or, maybe "preliminary" doesn’t mean "it’s a done deal." Or, quite possibly, the "sources familiar with the pact" were leaking the story in order to generate interest from other potential buyers at an even higher price.

Whatever is going on behind the scenes, the spokespersons for YouTube and Twitch have declined to comment.

The lack of a formal announcement hasn’t prevented the chattering class from weighing in on the deal. Depending on which opinion you read, YouTube’s acquisition of Twitter is too hot, too cold, or just right. Here are some recent headlines:

So, what would all this mean for YouTube if or when a deal is officially announced? Well, there’s no reason why anyone on Google or YouTube’s side of the table would leak the deal prematurely. So, unless the "sources" turn out to be a couple of Twitch investors – which include Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Inc., Thrive Capital, and Draper Associates – who can be expected to take the money and run, it means that YouTube will be adding some new executives with "loose lips."

Now, that shouldn’t be a deal-breaker. Besides, YouTube will get Twitch. Since launching in June 2011, Twitch now reaches 45 million visitors a month, with the average visitor spending 106 minutes a day on the site. Twitch also features more than 1 million broadcasters, which has benefited from the platform’s presence on Xbox One, the all-in-one gaming and entertainment system from Microsoft, and PlayStation4 (PS4) system, Sony Computer Entertainment’s (SCE) next-generation computer entertainment system.

audience-broadcasting-phenomenon

Twitch’s video platform is the backbone of both live and on-demand distribution for the entire video game ecosystem. This includes game developers, publishers, media outlets, events, user-generated content, and the entire e-sports scene. In February 2014, The Wall Street Journal ranked Twitch as the fourth-largest website in terms of peak Internet traffic in the U.S. fortifying the brand as an entertainment industry leader and the epicenter of social video for gamers.

In fact, this would be such a big deal that Spangler’s story included this news nugget: "YouTube is preparing for U.S. regulators to challenge the Twitch deal, according to sources." Disclosure of this behind-the-scenes insight is another reason why no one on Google or YouTube’s side of the table was responsible for leaking the deal prematurely.

So, if or when this deal happens, will digital marketers see any benefits?

If you talk to the folks at Gameloft, a leading global publisher of digital and social games, then it is business as usual. But, Gameloft was already a Twitch partner and Gameloft’s "Asphalt 8: Airborne" for iOS was the first ever mobile game to feature Twitch’s live-streaming functionality. Gameloft demonstrated the game’s broadcasting capabilities back in March during the week of the Game Developers Conference with a 24-hour live stream event on Twitch.

However, if you talk with most digital marketers, they were so focused on all the opportunities on smartphones, tablets, and even smart TVs that they’d totally overlooked the equally attractive opportunities on game consoles. So, the reports that YouTube was on the brink of the verge of the edge of acquiring Twitch for $1 billion has been a wake-up call.

With 18- to 34-year-olds watching less TV than ever before – and reading less, too, both online and print – it’s been somewhat of a mystery where they’ve all gone. Well, the general answer is online video. And following this week’s wake-up call, digital marketers now know the specific answer is Twitch. That means that digital marketers have already benefited from reports, even if they were premature.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Greg Jarboe

Greg Jarboe is president of SEO-PR, which provides search engine optimization, public relations, video marketing, and social media marketing services. He's the author of "YouTube and Video Marketing: An Hour a Day," a faculty member at Rutgers University and Market Motive, as well as a frequent speaker at SES conferences.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Fort MillWe are looking for a talented Internet Marketing Campaign Manager to join the...
    • Online Marketing Coordinator
      Online Marketing Coordinator (NewMarket Health) - BaltimoreWant to learn marketing from the best minds in the business? NewMarket Health, a subsidiary...
    • Call Center Manager
      Call Center Manager (Common Sense Publishing) - Delray BeachWanted: Dynamic Call Center Manager with a Proven Track Record of Improving Response...