Twitter, which began selling ads in April last year, will triple its advertising revenue to $150m in 2011 and is heading for $250m in 2012 according to a new study by researcher eMarketer.
That puts it way behind social network rival Facebook, which is forecast to hit $4bn in 2011 and Google’s $7bn or so today (although most of Google’s is still search).
But with a number of blue chip advertisers including Hewlett-Packard, Nissan and Starbucks appearing regularly on the site Twitter has clearly made a big impact in a short time on an advertising community which is becoming more adept at communicating through social networks.
Clearly the company has found a business model that’s capable of turning its estimated 175m users into revenue and ultimately profits. Accordingly the site, founded in 2006, is now valued at $3.7bn (compared to Facebook’s $54bn and Google’s $202bn) on the basis of its last $200m round of fund raising.
The next big challenge for the company is the US where only eight per cent of internet users access Twitter.