Twitter ad revenue near $1bn in 2014

By August 29, 2013Advertising, Twitter

I’m rather late to this, but this morning I was pointed towards an eMarketer projection of Twitter revenues from March this year which has them hitting $950m in 2014, up from $583m this year.

Screen Shot 2013-08-29 at 13.39.10

That’s some growth given the scale they are at and explains why people are talking more and more often about Twitter’s IPO. eMarketer puts the growth down to Google and Facebook focusing on mobile, Twitter’s ads API, and the fact that its ads are truly native (i.e. a genuine part of the native user experience).

Two other interesting facts:

  • Twitter has 550m active users, so their ARPU is about $1. The takeaway: it takes a lot of users to build a substantial ad based business. I can’t find any information on profits so it’s hard to know what this means for their valuation. Clearly they will need very high net margins to reach the mooted $10bn IPO value.
  • Only 17% of their revenues come from outside of the US. The takeaway: there’s an opportunity to help European advertisers spend more money on Twitter.
  • Michal

    Running a small business, I would definitely spend some money on Twitter. Unfortunately, you have to spend a minimum of £20k/month to qualify. It sounds like a lost opportunity to me.

  • http://www.theequitykicker.com brisbourne

    Hi Michal – if you have some agency friends who are tight with Twitter you might be able to get in with a lower amount, but they definitely aren’t making it as easy as they could. In the US you can pay with credit cards and you have to hope that comes here soon.

    That said, I’m told that test budgets should be £5k or more.

  • Michal

    I have a contact at Twitter itself – still didn’t get a reduction. And I’d need to run a few tests, with budgets of 200-300/month, simply as I can do on Facebook. That’s far off on Twitter, unfortunately.

  • http://www.theequitykicker.com brisbourne

    Yes, I think it is. The platform isn’t mature enough yet.