Twitter soars through 2011
The amount of money being put into Twitter as part of managed emarketing will soar in 2011 as part of an initiative to reap the benefits of the channel.
Twitter ad revenues in 2011 will ‘soar’
Tuesday, January 25 2011 by John Burns
Marketers in the US plan to spend much more on Twitter in 2011, according to new statistics looking into the service’s popularity over the next 12 months.
While the microblogging service has received plenty of media attention for its relatively unique approach to the social networking environment, it still has a relatively small audience, at least according to the Pew Internet & American Life Project.
However, eMarketer has opposed the findings from the aforementioned survey, which claimed that just eight per cent of online Americans used the service. While it didn’t dispute the figures, it argued the point that Twitter’s “fledgling ad products” would be boosted by renewed managed emarketing.
eMarketer explained that Twitter will earn in excess of $150 million (£95 million) in revenues this year and the majority of this will come through US managed emarketing investment. This will be more than three times the money put into Twitter during 2010, which stands at $45 million (£33 million), though this may be attributable to the fact it was the first year the company sold advertising.
Debra Aho Williamson, eMarketer principal analyst, 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.”
For this reason, eMarketer forecasts that Twitter will reach $250 million (£158 million) in managed emarketing investment by 2012, though the company needs to show it can “live up to its hype”.
However, it seems to be going in the right direction and eMarketer claimed that the monetisation efforts, such as Promoted Products and an ad targeting system similar to that of Facebook, could put it in the right direction.
Twitter and LinkedIn were highlighted as possible targets for managed emarketing from small businesses in the US last week by another eMarketer survey. Group-buying sites such as Groupon and LivingSocial were also found to be lower down on the list.
Living Streams “Improving clients’ profitability through better use of the internet”.
Source 1: http://www.emarketer.com/Article.aspx?R=1008192