New York-based company eMarketer has upped its forecast for advertising spend on popular micro-blogging site Twitter.
The independent market research business, which dishes out insights and trends related to digital marketing, estimates the popular social networking tool will earn $583 million in global ad revenue in 2013 - before nearing $1 billion next year.
With the current mobile frenzy, it comes as no surprise that according to the new forecast, more than half of Twitter's ad revenue (53%) will come from mobile advertising this year, up from 'virtually no ad revenue' from mobile in 2011.
A spokesman from eMarketer said advertising on mobile devices will be where Twitter sees the most incremental growth over the next two years. By 2015, Twitter is also expected to pull in $1.33 billion in worldwide ad revenue - more than 60% of which will come from mobile advertising.
Twitter’s Reach Expands
“The upward revision comes as advertisers have shown more interest in spending money on mobile advertisements on Twitter, and as recent audience figures from multiple research sources analysed by eMarketer have suggested, Twitter's reach is improving,” an eMarketer spokesman said.
The company believes Twitter has benefited from the increased focus on mobile by competitors such as Google and Facebook, which have both expanded their own mobile ad offerings and worked to convince advertisers to shift dollars to mobile devices.
Twitter, which lets users tweet up to 140 characters, permits people/brands to pay for ‘promoted tweets’. As reported by A4u last month, the company also launched its Twitter Ads Application Programming Interface (API) - allowing marketers to manage Twitter ad campaigns and integrate them into their cross-channel advertising strategies.
The research company also estimates that Twitter will earn $309 million in mobile ad revenue in 2013 - which is more than the company earned in total, from any ad type, in 2012, when it made $138 million from mobile ads.
The company’s forecast was created through eMarketer’s analysis of estimates from research sources that track media buying trends, advertising and other revenue indicators. It also used Twitter usage statistics from research firms and user surveys.