Chinese technology conglomerate LeEco has been expanding its presence rapidly in last few months and is now all set to make its brand known to consumers across the globe in the near future . On Wednesday, LeEco announced that it has entered into an advertising partnership with Twitter Inc (NYSE:TWTR) to further grow its global influence. Under the partnership, Twitter Inc will be providing LeEco with access to campaign-based analytics and custom research, along with strategic advertiser tools and resources. Moreover, LeEco will also get access to the social media company’s first-to-market advertiser innovation, like its recently launched video-advertising product First View, in the current year.
First View was launched by Twitter Inc in February this year. It allows marketers to reach a wide audience by giving them the exclusive ownership of the company’s advertising real estate for 24 hours. When a marketer uses First View, the promoted video of their brand gets the top ad spot on the timeline of a Twitter user, regardless of whether the user is accessing Twitter through the app or its website.
A Global Brand
LeEco started primarily as an online video company in 2004, but in the last decade has grown into a full-fledged technology conglomerate engaged in multiple businesses, which includes Internet TV, smartphones, electric cars and e-commerce. Due to its dominance in the cyber-video field, the company has been called ‘Netflix of China’. Last month, while unveiling its electric autonomous vehicle, called LeeSEE, the company compared it to Tesla’s Model S, saying that when released LeeSEE will surpass the Model S in ‘all aspects of performance’.
Though the company is well-known across China and has made impressive strides in different emerging technologies, it still remains a relatively unknown entity to consumers outside its home country. In December last year, it revealed its ambition to become a global company with plans to enter several overseas market in 2016.
In order to become a global brand, a company needs to reach audiences across the world and what better way to do it than by partnering with a social media company that boasts of over 300 million monthly users. While experts may argue that LeEco can achieve better results by partnering with other social media companies, LeEco’s conviction in Twitter stems from the success the company has achieved in India by using Twitter’s platform.
Commenting on the partnership, LeEco’s Head of North America Operations, Brian Hui, said, “From streaming entertainment to smartphones to smart televisions to cars and more, LeEco’s global vision of an internet ecosystem-powered future connects everything that matters to our consumers and partners. Having seen success using Twitter to power our brand in India, we look forward to expanding our global presence through this partnership with Twitter.”
Betting On Twitter
Since its IPO in 2013, the one major concern that investors have always had with Twitter is its struggle or rather its inability to monetize its user base. To address that, Twitter has experimented with various products and strategies in the past couple of quarters, but so far none of them have produced the desired results that the company was hoping for. Considering that Facebook is usually preferred by advertisers over Twitter because of the relatively high ROI it provides, there is no doubt that LeEco is making a big bet by partnering with Twitter instead of the former. However, if the company eventually ends up winning this bet, not only will it be a win for LeEco, but will also be a major win for Twitter.