Posts Tagged ‘twitter income’
Google earned more than half of the $8.8 billion spent worldwide by advertisers on mobile internet ads in 2012, giving the search giant a 52.36 percent share of global ad revenue.
This year, both the global mobile ad market and Google’s share therein is expected to almost double, with eMarketer forecasting mobile internet ad revenues of $8.85 billion for Google in 2013 from $15.82 billion overall, far ahead of second-placed Facebook, which is tipped to earn $2.04 billion (12.9 percent share).
One of the most effective – and lucrative – advertising products on Twitter is the Promoted Trend, which allows brands to dominate the Trending Topics on Twitter with a hashtag or phrase that sits right at the top of the list, thus guaranteeing high visibility and, one would assume, clicks.
This prominence comes at a price – back in February, the cost of a Promoted Trend on Twitter in the U.S. was hiked to an eye-opening $200,000. For one day. This is all relative, of course. There are more users of Twitter in the U.S. than in any other country, so they can charge more. A 24-hour Promoted Trend in the UK costs around £20,000, simply because, proportionately, less people will see it. But those figures add up, and they add up fast. In March alone, Twitter raked in more than $5 million from Promoted Trend advertising, and that was simply from sales made in the States.
Market research company eMarketer has raised its forecast for advertising revenue on Twitter, with the firm predicting $582.8 million in ad spending on Twitter in 2013 and $950 million in 2014.
This is an upward revision from a previous report that forecast $800 million in ad revenue for Twitter by 2014.
eMarketer expects Twitter to earn $150 million in revenues this year, the vast majority of which will come from the US. This represents a substantial increase over revenues of $45 million during 2010, the first year Twitter sold advertising.
By 2012, eMarketer forecasts, Twitter revenues will reach $250 million. But the company must show it can live up to its hype.
“If Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook, it will succeed in gaining revenue,” said Debra Aho Williamson, eMarketer principal analyst. “In 2011 it must work overtime to give its early advertisers a positive experience.”
Twitter’s monetization efforts will go into full gear this year, with the current Promoted Products suite and the pending launch of a self-serve platform akin to Facebook’s highly successful ad targeting system.
Twitter revenues will still be small compared to those of Facebook, but by next year eMarketer expects Twitter to pull in more ad dollars than Myspace.
Looks good, but despite what appears to be impressive growth, certainly percentage-wise, Twitter’s numbers seem a little shy to me. As of right now, Twitter’s overall network size is about one-quarter of that of Facebook (about 600m) – will the latter really be making 20x what Twitter makes in 2012, even with their three-year head start? And if so, isn’t that a pretty big fail on Twitter’s part? And what are these ‘other social networks’ that are on target to reach $1.5 billion?
As usual, take it all with a hefty pinch.