Twitter is Raking in Ad CashWritten by Michael Levanduski
September 13, 2012 # 7:55 pm # Industry News, Specials # No Comments
I do not want to seem as if I am trying to promote eMarketer, with all the information I get from their studies and reports, but they are constantly coming out with some kind of new results that are worth writing about. Today, they have released a new prediction for Twitter as a social media marketing platform for the relatively near future. Their new predictions are based on a prediction made earlier this year about Twitter’s ad revenue. Now, though, eMarketer has brought up their predicted number by 50 percent. It seems that since their last report on the subject, something has caused them to gain quite a bit more faith in the social platform.
Twitter is continuing to grow worldwide ad revenues at a rapid pace, eMarketer estimates, with 106.7% growth predicted for this year.
eMarketer expects Twitter to reach $807.5 million in advertising revenue worldwide by the year 2014. That is quite a number. Twitter advertising in the US alone as of right now, accounts for 96% of the total ad revenue of the company. This means that since the last prediction eMarketer made about Twitter’s ad revenue, marketers have been hopping on the Twitter band wagon like crazy. To make the prediction shoot up that much, US advertisers had to show significantly more interest in the network. However, eMarketer is saying that the US impact on total ad revenue from Twitter will be dropping from its current 96% to 90% this year. By 2014, they predict that US will impact Twitter’s total ad revenue even less, with only 79% of the revenue coming from here. This will most likely result from countries all around the world continually adopting Twitter as a viable advertising source rather than US advertisers using the platform less. In the US, Twitter will be a popular place to drive traffic and market businesses for quite a while.
But with US ad revenues expected to rise from $259 million this year to $638 million at the end of the forecast period, Twitter’s share of total US social network ad revenues will continue to climb.
For total social network advertising revenue, Twitter is expected to contribute about 8.3% this year. However by 2014, eMarketer expects Twitter to account for 12.7% of all social advertising revenue, making a significant jump in just two years.
It seems that faith in Twitter’s advertising potential has gone up, at least for eMarketer. Twitter’s advertising potential was never really questionable, though. With their enormous amount of constantly flowing traffic, marketers have always known that it was a perfect social platform to advertise on. Twitter advertising is still something that is relatively new, but already their advertisements are performing quite well. It will be interesting to see how close to the actual mark eMarketer’s predictions are. Since they have based their predictions on the estimates of other researchers as well as common Twitter trends and since they have an impressive marketing prediction track record, I think we should be expecting numbers pretty close to those that the company has predicted.