Advertisers Are Shying Away From Vine, Gravitating Towards Competitors

Vine, a video platform owned by Twitter Inc (NYSE: TWTR), has been losing market share and brand appeal to new video formats such as Facebook Inc (NASDAQ: FB) and Snapchat. AdWeek's Lauren Johnson wrote that between September and November, Vine contributed only 113 of 2,500 social videos, as brands are having a difficult time targeting their core audiences using the platform.

Tyler Hissey, a senior digital strategist at Hill Holliday wrote, "Over time, it became difficult for many marketers to achieve scale [on Vine]. 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."

One of the biggest issues with Vine's platform is that it doesn't have an advertising model, unlike competitors Facebook and Snapchat. Industry experts believe that while Vine videos are known for being entertaining, without a revenue generating business model it will be very difficult for companies to achieve scale on the platform.

Another disadvantage for Vine is that its videos are limited to only six seconds of content. Mark Brook, a director of Digitas Studios, said there are few opportunities to tell a story about a product in that short of a time frame, which makes it difficult for advertisers on the platform.