Just two years ago, Twitter had virtually no ad revenue. This year, 53 percent of all its revenue will come from Twitter mobile advertising.
This information is from a new forecast from eMarketer, which shows that the company’s revenue is growing quickly; in fact, it is expected to approach the $1 billion mark by 2014. This growth is spurred by an increased focus on advertising on mobile devices.
The change in Twitter’s revenue source, eMarketer says, stems from the company’s improved reach and the advertising industry’s subsequent increased investment on mobile ads on the social network.
Twitter introduced mobile ads in March 2012 and the impact on revenue is already being seen. Twitter mobile ad revenues are expected to be $308.9 million this year, which is more than total ad revenues in 2012. Total ad revenue for 2013 — predicted at $582.8 million — is more than double last year’s $288.3 million.
This is all particularly impressive considering that mobile ads on Twitter didn’t exist until about a year ago and will continue to grow in the coming years. In fact, by 2015, eMarketer projects that total ad revenue at the company will be $1.33 billion, with 60 percent coming from mobile ads.
The report speculates that the mobile ad business has been built so quickly because of the “native” experience of the ads, which integrates into the core user experience of Twitter.
Given that Twitter is a private company, these numbers come from an analysis of “estimates from many research sources that track media buying trends, advertising and other revenue,” according to eMarketer. Forbes reports that the company is expected to offer an IPO as early as next year and, if that happens, it will be interesting to see how the company balances investor expectation of continued revenue growth with the user experience (including mobile ads) it has created.
Still, Twitter’s revenue is growing faster than initially predicted. When mobile ads were introduced, eMarketer estimated revenue in 2014 at $540 million, but increased that estimate to slightly over $800 million in September of last year.
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