American Express teams up with Twitter
Have something to say about McDonald's? You might just get a discount.
By Daniel James Hayden IV, Benzinga Staff Writer
American Express (AXP) and Twitter have teamed up to offer discounts when American Express cardholders send advertising messages to their Twitter followers.
It's a pretty clever idea. The companies can create a small army of advertising minions at very little cost. And Twitter users feel like they're getting a deal as well. The only people getting the short end of the stick are the Twitter followers who get subjected to all the shilling.
American Express cardholders can sync their cards with their Twitter accounts at sync.americanexpress.com/twitter. Once the two accounts are linked, the cardholders will be eligible for special deals at participating merchants such as McDonald's (MCD), Best Buy (BBY) and Amazon's (AMZN) Zappos.com.
First, the cardholder must send a tweet that includes a merchant's special hashtag. The tweet doesn't have to be an outright advertisement; it just must include the hashtag. When that happens, a deal gets loaded directly to that person's American Express card. The cardholder then makes a purchase from the participating merchant, and the American Express card account automatically receives a credit within days.
The new program is a win for American Express because it adds to member benefits and creates a deeper relationship between the company and its customers. It also places Twitter in a position to profit not only from e-commerce, but from sales at traditional brick-and-mortar businesses.
"American Express is turning Twitter content into commerce by connecting card members to merchants and delivering real world value to both," American Express executive Ed Gilligan said.
American Express reportedly planned to launch the program with just five participating merchants. However, the program attracted so much attention that nearly 20 companies have already signed on to take advantage of Twitter's viral marketing potential.
The partnership is one example of how Twitter could leverage its massive online user base to turn a profit. And that's good news for investors who are anticipating a Twitter IPO but have concerns about how the company will generate significant profits.
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
LATEST POSTS
The auto parts giant beats Wall Street expectations, while continuing to expand its stores in the U.S. and Mexico.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.

