For a service that limits messages to 140 characters, Twitter is expecting some big ad revenues in the next couple of years. Most of the firm’s growth is attributed to the mobile channel. With so many consumers relying on their smartphones, analysts believe that Twitter is appealing to a wider audience – a fact that marketers are noticing.
The way eMarketer analysts see the future, Twitter stands to more than double its revenue in the next 2 years. After ending 2012 with revenue of $288.3 million, a 100% increase over the previous year, the revenue projection for 2013 is $582.8 million. This is another 100% revenue increase. By 2014, revenue should be at $950 million, globally.
Over time, Twitter’s ad revenues will increasingly come from non-U.S. sources. In 2012, 90% of the firm’s revenue came from the U.S. but by 2015, that figure will drop to 76%.
The mobile component of the 2013 revenue will be $308.9 million or 53% of the total. This is a healthy figure which might have some skeptics raising their eyebrows. But analysts believe marketers are warming up to mobile advertising as firms like Google and Facebook push their offerings. Analysts say that the growing acceptance of native ads is making a difference for Twitter. When consumers see Promoted Tweets, which look so similar to every other tweet, some are clicking them to read more. Others are clicking to access possible deals or promotions.
To learn more about Twitter Users, check out the Audience Interests & Intent Report available on the Research Store at ad-ology.com.[Source: Twitter Forecast Up After Strong Mobile Showing. Emarketer.com. 28 Mar. 2013. Web. 12 Apr. 2013]