Twitter Ad Revenue Predicted Growing To $400 Million By 2013

While Google+ and Facebook are battling and there is still a debate if Twitter win or lose from this, a new forecast from eMarketer predicts that Twitter will continue to grow its profits, which will reach to $400 million in 2013.

Twitter Revenue Growth

Twitter will profit from ads $139.5 million in 2011, an incredible increase of 210% from last year but a little lower from the $150 million predicted by eMarketer at the beginning of the year. The profits growth rate will slow down in the next couple of years but would remain very high- In 2012, the revenue will grow to $260 million (86% increase) and in 2013 it will grow to $400 million (54% increase).

Debra Aho Williamson, an eMarketer analyst, attributes the tremendous growth rate in the next couple of years to Twitter’s highly engaging advertising platforms which perform better than other companies advertisements, even though they have much bigger audience. Debra explains that this year’s slightly lower revenue is due to several months delay of selling ads abroad and advertising platforms that still in development.

Non-US Ad Revenue Rising Fast, But Still a Small Part

Most ad revenue of Twitter comes from the US, however, it is expanding worldwide fast while taking more parts of the total revenue:

In 2010- Only 2% of Twitter’s revenue came from outside the US and was only $0.9 million.

In 2011- Non-US revenue climb to $5.6 million, 6.2 times higher than 2010, 4% of the total revenue.

In 2012- Non-US predicted growing to $26 million, 4.6 times higher than 2011, 10% of the total revenue.

In 2013- Non-US predicted growing to $48 million, 1.8 times higher than 2012, 12% of the total revenue.

Twitter Worldwide Revenue

Although revenue from outside of the US is rising fast, it is still very small and unbalanced. The balance between US to non-US revenue of Facebook for example is predicted to be about 50%-50% in 2012.