More Marketers to Use Twitter, Renew with Service

Regardless of the turmoil that is rumored to be taking place inside Twitter, marketers continue to experiment with this social media format. For now, many of these advertisers are returning for additional promotions with Twitter. This positive attitude may explain why some analysts expect Twitter revenue to triple this year.

Ad revenue from social media sites, projected to be about $2.1 billion last year, has been largely about display. And most of that money went to Facebook. Twitter is rumored to have made about $45 million on ad sales last year and several research shops expect this figure to jump to $150 million this year. The firm has expanded into promoted tweets and promoted accounts as a way to build advertising.

For marketers that do advertise with the service, the numbers look promising. Recently published eMarketer statistics show that advertisers are seeing results from their investment:

  • Advertisers currently supported by Twitter: 600 (versus 150 last year)
  • Advertiser renewal rate: 80%
  • Twitter users following at least one brand: 40%
  • User engagement for Promoted Tweets: 3–5%

Twitter started out as a company that didn’t know what it wanted to be when it grew up. But now that private investors have poured money into the company and talked up the firm’s valuation to the astronomical figure of $3.7 billion, all eyes are on revenue generation. The adult Twitter, investors believe, will be a company that attracts ad dollars. Analysts are looking for the company’s management team to settle down and release new advertising tools. The service currently excels as a real-​time news source. And while Twitter is highly popular with users, marketers will expect a high level of service and the ability to reach those users. Otherwise, they’re likely to take their ad money and move onto the next new thing.

[Sources: Hempel, Jessi. Trouble @Twitter. Tech​.fortune​.cnn​.com. 14 Apr. 2011. Web 12 Aug. 2011; Reese, Stephanie. Quick Stat: Twitter. Emarketer​.com. 2 Aug. 2011. Web. 15 Aug. 2011; Dunaway, Gavin. Grim News About Twitter. Adotas​.com. 2 May 2011. Web. 15 Aug. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.