Twitter launched in 2006, but still has a relatively small audience. The Pew Internet & American Life Project found in November 2010 that just 8% of online Americans used the service. The comapny has finally began to monetize. eMarketer expects Twitter to earn $150 million in revenues this year, the vast majority of which'll come from the US.
This represents a substantial increase over revenues of $45 million during 2010, the first year Twitter sold advertising.
By 2012, eMarketer forecasts, Twitter revenues will reach $250 million. But the company must show it can live up to its hype.
Debra Aho Williamson, principal analyst for eMarketer, says that the only way for Twitter to gain the increase in revenue is "[i]f Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook." Lucky for Twitter, playing second to Facebook mayn't be all that hard to accomplish.
Last August, Twitter outgrew MySpace in unique visitors and, eMarketer suggests, it'll once again trump MySpace. In 2012, it'll outgrow the News Corp. site in ad dollars. Increasing Twitter's user base, on the other hand, may prove something different entirely; the site currently has about 175 million registered users and studies found that 8% of people on the Internet have a Twitter account.
[tags]ad revenue,emarketer,social media,social networking[/tags]