While until just a couple of years ago social networks found it difficult to be extremely profitable, since then, their revenue is growing so fast like a million friends News Feed. And i don’t talk about Facebook here, but on the seconds most popular social networks (at least until Google+ will surpass them), LinkedIn and Twitter.
New report is showing that LinkedIn and Twitter worldwide ad revenue has grown immensely in 2011 and it is only predicted to keep climbing in amazing pace in the next few years. In addition, another study is indicating that Twitter is expanding its global user base gradually beyond the U.S.
LinkedIn and Twitter Fast Growing Ad Revenue
According to eMarketer, LinkedIn (that already is a public company) total ad revenue in 2011 has increased by 95% compared to the prior year, to $154.6 million. Even though LinkedIn revenue’s growth rate is predicted to slow down in the next three years it will remain a very strong double digits yearly growth rate.
In 2012, the professional social network ad revenue is predicted to jump by 46.1% to $226 million, in 2013 it predicted to grow by 37.5% to $310 million and in 2014 predicted to grow by 30.5% to $405.6 million. Overall, a jump of 162% in four years, for the attention of all you shareholders.
And if thought LinkedIn numbers are impressive, you should take a look at Twitter’s. In 2011, the micro-blogging social networking site produced a jump of 233% in revenue landing at $139.5 million. It was still a little behind LinkedIn that year, but as it appeared it won’t stay there too long.
Twitter’s yearly ad revenue will bypass LinkedIn’s in 2012 reaching for nearly $260 million with an amazing growth rate of 83%. In 2013, the ad revenue predicted to jump by 55% to almost $400 million and in 2014 it predicted to break the half of billion barrier with a climb of 36% to $540 million. Overall, to almost quadruple in four years.
The “problem” with Twitter’s ad revenue is that its relying on the U.S. for 90% of its income in 2011 and by 2014 it predicted to go down a bit to 83% which is still very high. For comparison, LinkedIn’s U.S. ad revenue will constitute as 60% of the total by 2014.
Twitter Expanding Its International User Base
Although it isn’t reflected so far in ad revenue, Twitter users are coming from almost all regions worldwide. According to a study by the social media research company, Semiocast, while the total Twitter accounts created before January 1st 2012 are 383 million, only 107.7 million of those comes from the U.S. (about 28%).
Surprisingly, Brazil ranked second for the most Twitter accounts with 33.3 million, followed by Japan’s 29.9 million. The U.K. has generated 23.8 million accounts and Indonesia, which closing the top 5, has 19.5 million. Note that the study is discussing about accounts and not about active users.