eMarketer Forecast: Twitter Ad Revenues expected to reach $259 million in 2012; $540 million by 2014

In 2011, the popular online social networking service Twitter gained a whopping $139.5 million in advertising revenues, registering a growth of 233% in its second year of Ad selling. According to eMarketer’s new forecast, Twitter would see Ad Revenues growing by 83% to $259.9 million in 2012. Further, the research company estimates global ad revenues of $540 million by 2014.

According to Debra Aho Williamson, principal analyst at eMarketer, “Twitter is positioning itself for strong growth over the next few years. […] to achieve a trajectory similar to Google and Facebook, Twitter still needs a proven, turn-key ad platform and a significantly bigger user base to deliver the reach advertisers demand.”

“Twitter does have an advantage over its competitors, however, in terms of advertising performance,” said Williamson.

On Twitter’s international expansion, Williamson said, “Twitter’s continued expansion of its international sales force will help more than double the company’s overseas revenue each year for the next two years.”

In the present, about 90% of Twitter’s advertising revenues are contributed from the US sources. The contribution of other countries was just about $26 million to the total ad revenues in 2011. Although the expansion of international sales force would diversify the revenue sources in three years time, still 83% is estimated to come from the US.

Twitter vs. LinkedIn

The latter earns more ad revenues from sources outside the US. However it being a business-related social networking site, the total ad revenues and growth rate does not match to the Twitter’s level.

According to eMarketer’s forecast, this year LinkedIn would record a 46.1% (year-on-year) increase in its ad revenues to $226 million mainly due to money coming in from abroad. The market research firm estimates that US advertisers may count for 60% of revenues only by 2014.

Source: eMarketer Press release


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