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December 7, 2015

Lack of advertising model is hurting Vine, causing brands to flee

by John_A


Vine launched more than two years ago as a video sharing service that limits uploads to just six-second clips. The service, which is overseen by Twitter, has been forced to fight with Snapchat as the go-to for short-form content. While Snapchat has been securing partnerships and launching new feaures, Vine is in a place of confusion. After all, video has become a vital part of Twitter. And the overall problem for Vine could be the lack of a clear advertising model. Brands are fleeing Vine in favor of Twitter, Facebook, Instagram, and, obviously, YouTube to spend even more of their money.

Tyler Hissey of Hill Holliday, Boston-based marketing communications firm, told Adweek that Vine is missing tools to keep brands on the service:

“Over time, it became difficult for many marketers to achieve scale. In the last six months or so, brands have started to de-emphasize Vine as a channel because of the targeting capabilities on all these other platforms.”

Adweek looked at research done by Tubular Labs, examining the social media accounts of forty major brands. Between September and November of this year, a meager 4.5% of the 2,500 videos posted could be found on Vine. A large number of brands are halting the use of Vine altogether without caring that their accounts have been inactive for months. Vine hasn’t clicked with marketers after the buzz surrounding the service ended. Its only advantage seems to be enlisting the stars of Vine to create content published on their own channels rather than the brands’.

Vine may be wealthy in user-made content, but the brands are what will keep the lights on. If Twitter can’t figure that out, Vine could be spun off into its own entity or sold to another company seeking to enter the world of video.

Source: Adweek

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