• 02May

    twitter_bird_arrows_kybdAs a follow-on to last week’s blog post about the future of Twitter, I spotted an interesting item in the Adotas newsletter today regarding Twitter’s anticipated ad revenue.

    According to a new report from BIA/Kelsey, there is both good news and bad news. The good news is that revenues for social media advertising is expected to from from $2.1 billion in 2010 to $8.3 billion by 2015. The bad news for Twitter is that the majority of the cash is allocated for display advertising – $7.7 billion by 2015. Non-display revenue, like promoted Tweets and promoted accounts 0 will grow to $600 million in 2015. According to the report, non-display ads, like promoted Tweets, didn’t generate any revenue in 2011, although other sources peg Twitter’s 2010 earnings at $45 million.

    According to Adotas, eMarketer predicted Twitter earning sof $150 million in 2011 and $250 million on 2012, which is very much in line with the BIA/Kelsey report. But these figures fall far short of Twitter’s promise. To quote from Adotas:

    I can’t be the only one thinking, “That’s it?” But last week I commented that Twitter’s beta text ads would bring in incremental revenue at best — there is no Twitter ad product that promises exponential revenue growth, something that’s ever-more haunting since North American user growth stalled a while ago.

    As Twitter’s valuation keeps skyrocketing, it’s getting tougher to turn a blind eye to these grim revenue estimates.

    It will be interesting to watch this birdie as the business of social media evolves.

    Share

    Tags: , , , ,

   

Recent Comments

  • Having utilized a press release submission to promote many o...
  • Thanks Tom! I agree with your "time and place" assessment an...
  • Point taken, Marc. I guess over the years I started assuming...
  • You're absolutely right...kind of. Tom, my firm -- Strate...
  • Hi, Jennifer: In my business we use analyst quotes as indep...