Twitter may generate $1b in ad revenue in 2014

Mar 30, 2013
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Twitter may generate $1b in ad revenue in 2014

Twitter's ad revenue is expected to skyrocket in 2014. The social network has seen a huge rise in mobile advertisement revenue, and is expected to continue on with that momentum throughout the next year. According to eMarketer, 53% of Twitter's ad revenue comes from mobile advertisements alone. That's a huge percentage, especially considering that Twitter generated nothing from mobile advertisements back in 2011.

eMarketer expects that Twitter's ad revenue will be around $582.8 million this year, with $308.9 million of that revenue coming from mobile ads. That figure will leap all the way to $1 billion next year. In 2015, that number will jump up 33% to $1.33 billion, with an expected 60% coming from mobile advertisements. Twitter, like Facebook, sees the significant revenue mobile devices can bring to its service.

Twitter may generateion 1b in ad revenue in 2014 1

Twitter's targeted marketing and its improved reach are appealing more and more to advertisers. It had also recently launched an advertisement API that allows marketers to develop more effective marketing tools, and that allows advertisers to shell out more relevant ads to a better targeted group of users. Tests with the API showed a significant boost in user engagement as well as an increase in brand followers.

$1 billion in revenue doesn't seem too far off, especially since the company has just officially announced that is has 200 million users who tweet out an average 400 million tweets per day. Twitter is also getting ready to launch its own standalone music app that should draw more users to its service. The service will stream music through SoundCloud and will provide users a more personalized music experience. The service browses for music artists through the user's "following" list, and will also have a list of emerging, popular, and trending songs available for the user. The service will be available for users without Twitter accounts as well, however, they have to sign up for the social network if they want to experience personalized music.

[via eMarketer]


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