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Twitter Ad Revenues to Near $400 Million by 2013

Ad dollars expected to triple this year

Twitter will earn $139.5 million in global ad revenues this year, up 210% from $45 million in 2010, according to a new forecast from eMarketer. By 2013, eMarketer estimates worldwide ad revenues at Twitter will reach nearly $400 million.

“Since their debut in April 2010, Twitter’s Promoted Products have proven successful in the US,” said eMarketer principal analyst Debra Aho Williamson. “Marketers have shown solid engagement rates with Twitter advertising—in some cases better than those on Facebook—despite Twitter’s relatively smaller audience.”

This forecast features a slightly lower 2011 ad revenue estimate than eMarketer’s previous estimate from January 2011—a result of Twitter’s slower-than-expected rollout of several advertising initiatives, including ad sales offices in markets outside the US and a platform enabling advertisers to buy ads on a self-serve basis. In January, eMarketer forecast that Twitter would have $150 million in ad revenue this year.

“Twitter took several months longer than expected to start selling advertising in the UK, but more international offices are coming soon,” Williamson said. “In addition, the self-serve platform has been in development for some time. When it launches, it will open up Twitter to more small and midsize advertisers.”

Ninety-six percent of Twitter’s ad revenues will come from the US this year, eMarketer predicts, falling to 88% by 2013 when ad dollars from elsewhere in the world will make up a more substantial revenue stream. Twitter’s US ad revenues will still more than double during that time period, rising from $133.9 million this year to $351.6 million in 2013.

“Twitter is looking to compete for the same advertisers that made Google and Facebook’s self-serve advertising platforms smash hits,” Williamson added. “Self-serve advertising accounts for about 60% of Facebook’s ad revenue—that’s a pinnacle Twitter will hope to reach as well.”

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Check out today’s other article, “Mobile and Social Commerce Create New Security Concerns for Consumers.”

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