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ADWEEK: Why Amazon’s Deal With Twitch Makes Sense

 

ADWEEK’s Michelle Castillo covered the acquisition of Twitch by Amazon. While it may have come out of left field, she wrote, analysts believe that the Amazon-Twitch acquisition deal—worth a princely sum of $970 million—sounds like a perfect match.

Michelle and Brian discussed the acquisition. Following is an portion of their conversation.

Altimeter analyst Brian Solis pointed out that the move solidifies Amazon’s play to target the coveted youth that find themselves at home watching videos on YouTube and clips on Vine. “My hunch is that they’re buying Twitch to pursue the younger generation, this sort of new digital audience where the second screen for every day consumers is actually the first screen,” he said.

Twitch boasts a 90-plus percent ad completion rate compared to the industry average of less than 50 percent, per mobile ad serving and analytics company Celtra. Solis believes that those facts, with the added bonus of the amounts of data it will be able to glean from Twitch’s users, could make the e-commerce outlet a dangerous force in the ad space.

“We’re going to see insight into a mysterious consumer, one that I think is counter intuitive to the traditional consumer that brands and advertisers tried to reach. It’s almost like an alien discovery to some brand strategists,” he said.

Read the article in its entirety here.

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