Twitter Increases Share of Social Ad Revenues - eMarketer

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Twitter Increases Share of Social Ad Revenues

By 2014, the microblogging service will take in 12.7% of US social network ad revenues

September 13, 2012

Twitter is continuing to grow worldwide ad revenues at a rapid pace, eMarketer estimates, with 106.7% growth predicted for this year.

That may seem like a steep drop after the above-200% growth seen in 2011, but throughout eMarketer’s forecast period the microblogging service is expected to maintain growth in the high double digits, reaching $807.5 million in ad revenues worldwide by 2014. eMarketer expects an increasing share of Twitter’s total revenues to come from advertising from 2011 through the end of the forecast period, since the revenue potential for deals with search engines and other partner sites—once the service’s only source of revenues—can only go so high, whereas the potential for selling more ads remains large and scalable.

Twitter Ad Revenues Worldwide, 2010-2014 (millions and % change)

Twitter has increased its efforts to sell advertising outside the US, and the US portion of total ad revenues is expected to drop correspondingly, from 96% last year to 90% this year and just 79% by 2014. 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.

Last year, eMarketer estimates, Twitter accounted for 5.5% of such revenues, up from a measly 2.3% in 2010. But by 2014, 12.7% of all social network ad revenues in the country will go to Twitter.

US Social Network Ad Spending Share, by Venue, 2010-2014 (% of total)

eMarketer forms its estimates of Twitter advertising revenues worldwide based on the analysis of estimates from other research firms; Twitter usage trends; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders.

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Check out today’s other articles, “Who Is Most Concerned About Mobile Privacy?” and “Word-of-Mouth Drives Local Consumers in Canada.”


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