I’ve discussed this before, why acquiring Reddit would be a great idea for Twitter. Reddit is essentially a news and entertainment sharing web site and ranks in the top-10 most visited web sites in the U.S. The nature of its services closely aligns with Twitter’s, which is also typically a news and entertainment microblogging web site.
Reddit’s monthly active users (MAUs) stands at more than 200 million and offer a great opportunity for Twitter to make some solid bucks by monetizing this currently undermonetized platform.
One way to do so could be by monetizing video content. Reddit is rumored to be venturing into a Netflix-like native video content service. Twitter has already made a move in monetizing video content through its “Promoted Moments” service. Integrating the two platforms could open new doors of revenue for the company.
Unlike Reddit, however, there’s one social platform that is popular and already has a nicely monetized model. Pinterest is a media content sharing social medium, primarily for photo sharing, where users can generate and save ideas.
Pinterest’s MAUs have reached more than 100 million this year and are expected to grow to over 329 million in the next three years. Pinterest is already making over $90.0 million in revenue and is expected to increase this number to $2.8 billion by 2018. (Source: “Leaked Pinterest Documents Show Revenue, Growth Forecasts,” TechCrunch, October 26, 2015.)
Just like Twitter, Pinterest has its own version of promoted content called “Promoted Pins,” whereby advertisers can pay to get more visibility on the web site. In addition, Pinterest users can buy products on the web site through the “Buyable Pins” feature. With this acquisition, Twitter will be able to add a solid revenue base, boosting both its top- and bottom-line numbers.