Terrific analysis. Twitter has a big opportunity, especially if it adds a long-form video capability.

In a world with long-form video on Twitter, the next time a video advertiser wants to catch the attention of ABC’s “Scandal” audience, that advertiser will have a plethora of options for its ad buying, including YouTube, Facebook, Twitter, ABC and more. But think about the benefits that Twitter presents to an advertiser. All it needs to do is to post a tweet with the video, which will reach its followers for free, and then promote that tweet to people watching “Scandal” during its airing (which generates 2,200 tweets per minute and can be targeted via Twitter’s TV targeting). That video tweet will end up being more valuable than pre-roll on YouTube, as it’s targeting users watching “Scandal” across a variety of platforms, such as cable, Web and satellite, and it is ridiculously easy to embed across the Web. What started as a tweet to your followers ends up giving you hyper-targeting that reaches Twitter’s highly engaged audience in real time and has unlimited distribution via the rest of the Internet.

Twitter is already the medium of choice for event interaction.

In addition to its one-up with television, Twitter has a big step ahead of YouTube when it comes to direct engagement. Brands successfully engage with their communities in many different ways on Twitter. Major brands have customer service monitoring Twitter 24/7. They share updates, interact with fans, comment on Super Bowl power outages and more through the social network. Each brand’s account essentially turns into the public persona for that brand on the Internet.

The stakes are huge. Twitter’s next move will have a huge impact on both the cost and implementation of advertising over the foreseeable future.