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Posts Tagged ‘Twitter money’

Marketers Will Spend $150 Million On Twitter In 2011

So says a new report from eMarketer.

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.

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Twitter: First Sponsored Tweets, Now Sponsored Trends (Then Sponsored Followers, Lists & Retweets)

Sponsored trending topics may soon be making an appearance, according to All Things Digital’s Peter Kafka (@pkafka).

The basic gist seems to be this: Advertisers will be able to insert their own term into the list of trends that Twitter displays on users’ home pages and on its login page. Clicking on that term would call up a Twitter search results page, which would feature that advertisers’ “Promoted Tweet” at the top of the results.

Advertisers who have heard Twitter talk about the product say the service imagines charging “tens of thousands of dollars” a day for exclusive placement rights.

I have to say this sounds like a really bad idea. I hate the thought of companies being able to buy their way into what is supposed to be a user-generated, trending topics list. I mean, sure, capitalism and all that, and I’m all for Twitter earning a buck, but where will it end?

(Source: All Things D.)

Twitter On Future Profitability: "We're Thinking About Big, Big Numbers."

Twitter Chief Operating Officer Dick Costolo (@dickc) has been outlining Twitter’s plans for its new advertising system and addressing concerns about the company’s long-term monetization goals.

“We were valued at over a billion dollars last September, so we’re going to live in a world where we need to be generating hundreds of millions of dollars in revenue,” Costolo told Reuters. “We’re thinking about big, big numbers.”

Other points of interest:

  • Twitter is currently adding another dozen advertisers to their Promoted Tweets platform, which Costolo says has been “successful beyond our wildest dreams.”
  • Costolo says Twitter will start to “ramp this up aggressively” beginning in the third quarter of 2010
  • The long-hyped premium Twitter accounts are due this July or August

Costolo: “I’m super confident but it’s a dark tunnel and we’ll see where we are at the end of Q4.”

(Source: Reuters.)