Study says Twitter to triple ad revenue to $150m in 2011

A study by eMarketer predicts that Twitter will triple its advertising revenue to $150m in 2011, with the outside possibility it might even reach $250m.

Brands already using Twitter include the likes of American Express, Nissan and Starbucks.

eMarketer analyst Debra Aho Williamson said: “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. In 2011 it must work overtime to give its early advertisers a positive experience.”

eMarketer based its $150m assessment on a study that compared Twitter with Facebook. The elder social networking site had sales of around $150m in 2007 when it started to focus on selling ads. Many believe that despite the current difference in scale between the two networks – Facebook nows has ad revenue of around $1.86b – it is possible that Twitter may now gave it a run for its money.

Other eMarketer conclusions include:

The majority of Twitter's ad revenue in 2011 will come from the US, but from next year around 10% will come from international brands.

Facebook's revenue will soar to around $5.7b in 2012

MySpace revenue will drop from its current level of $288m to $156m over the period, meaning Twitter will outstrip it in both ad revenue and site traffic

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