American Express teams up with Twitter

Have something to say about McDonald's? You might just get a discount.

By Benzinga Mar 7, 2012 5:41PM

Image: African-American woman shopping online (© Ariel Skelley/Blend Images/Getty Images)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 from Benzinga:
9Comments
Mar 8, 2012 2:20PM
avatar
does this mean Warren Buffett likes Twitter? he likes AXP...
Mar 8, 2012 2:17PM
avatar
The future. Its the companies that keep finding better and more innovative ways to use social media that will win. Twitter is already becoming to cluttered. But uses like this will keep fueling the creative minds for it to thrive. Well done on both sides. 
Mar 8, 2012 1:51PM
avatar
Coming soon: 5% interest on all trivial tweets.
Mar 8, 2012 1:50PM
avatar
Seems like a match made in heaven. Where else can the financial institution / social network site team-up take us?
Mar 8, 2012 2:13PM
avatar
This is one of those marriages we hope to see last, unlike Russell Brand and Katy Perry.
Mar 8, 2012 1:56PM
avatar
This is great...I wonder if other credit card companies will follow suite in the future!
Mar 8, 2012 1:56PM
avatar
It sounds like Twitter may be getting some percentage of the profit with a program like this but it still won't provide them with the significant revenue stream a company needs to stay afloat. 
Mar 8, 2012 1:51PM
avatar
This is interesting. I guess we're going to see more of this in the future, as social media becomes increasingly important to customers and retailers.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. 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 Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

105
105 rated 1
271
271 rated 2
420
420 rated 3
633
633 rated 4
492
492 rated 5
532
532 rated 6
725
725 rated 7
515
515 rated 8
343
343 rated 9
140
140 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
EOGEOG RESOURCES Inc10
SWNSOUTHWESTERN ENERGY COMPANY10
TAT&T Inc9
COPCONOCOPHILLIPS9
More

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.