Twitter Ad Spend Forecast To Hit $1 Billion In 2014
Well-positioned for the recent boom in mobile usage, the future looks brighter than ever for Twitter.
It is estimated the microblogging giant will take in $582.8 million in global ad revenue this year and nearly $1 billion next year, per eMarketer.
According to the new report, more than half of Twitter's ad revenues (about 53%) will come from mobile advertising, this year -- up from virtually no ad revenue from mobile in 2011.
Specifically, eMarketer estimates that Twitter will earn $308.9 million in mobile ad revenue in 2013 -- which is more than the company earned in total from any ad type in 2012, when it made $138.4 million from mobile ads.
Put one way, Twitter is benefiting from the “native” nature of its mobile ad products, according to Clark Fredricksen, a researcher at eMarketer and co-author of the report. “While many Web publishers struggle to adapt to smaller screens, Twitter was integrating its mobile ads with its core user experience from the outset,” said Fredricksen. “Now it’s benefitting from that early positioning.”
Another factor in Twitter’s healthy outlook is its ambitious global monetization efforts, Fredricksen noted. “Its user-base is spread much more broadly than its monetization efforts, but that’s going to change over the next few years,” he said.
By 2015, Twitter’s continued expansion of foreign sales operations is expected to help non-U.S. ad revenue reach $319 million -- up from just under $100 million, this year.
Overall, Twitter is expected to rake in $1.33 billion in worldwide ad revenue by 2015 -- and more than 60% of this will come from mobile advertising, eMarketer predicts.
This year, the bulk of Twitter's ad revenue (about 83%) is still expected to continue to come from the U.S. -- down from 90% in 2012.
Ironically, eMarketer also suggests that Twitter owes Google and Facebook a debt of gratitude for its good fortune. According to the research firm, Twitter is benefiting from the increased focus on mobile ads by competitors like Google and Facebook, both of which have gone to great lengths to sell Madison Avenue on the promise of mobile.
“Google and Facebook have paved the way for Twitter,” Fredricksen added.