Can Twitter Ever Influence Online Ad Revenue Market With Its Presence


Since inception Twitter growth rate has been exponential and has grown beyond marketers’ expectation. Especially, in last one year its revenue as well as registered users base has touched a up-height milestone. Its registered users base has reached 500 million users and  revenue is expected to touch $540 million by 2014.

Though Twitter has been rewarded as the “Digital Service of The Year”, still it lags behind Facebook in terms of users base as well as revenue. Currently, Facebook users base is near about 850 million and reported revenue was $4 billion at the time of S-1 filing.

Twitter is trying its level best to compete with Facebook and Google in advertisement market by launching various features to trap more and more advertisers. But, the path is not easy for Twitter as Google and Facebook are the kingpin of online ads and even advertisers too prefer to advertise on Google or Facebook more than any other online channel. Therefore, it’s a bit tough for Twitter to get even close to them in coming few years.

Comparing the yearly revenue of Twitter, at this point in time, with Facebook and Google is just like putting a normal person in front of sumo wrestler. Facebook revenue was $4 billion in 2011 while Google’s revenue stood to $37.9 billion in 2011 compare to Twitter’s revenue which was just $139.5 million in 2011. Even, Twitter was unable to settle down any where close to the ad revenue of Facebook and Google which was near about $3.2 billion and $36.76 billion in 2011 respectively.

Adding further, it has been predicted that Facebook ad revenue will surge up to $5.06 billion, while its overall revenue might touch $6.1 billion by the end of 2012. While, Google ad revenue is expected to reach $46.5 billion out of overall revenue $48.03 billion by the year-end.

Interestingly, recent study reveals that Google online display ad revenue from U.S. will be around $2.54 billion in 2012, while for Facebook it will be close to $2.58 billion. Interestingly, if we combine the projected revenue of Twitter from 2011 to 2014, the outcome revenue figures still be much lower than U.S. online display ad revenue of Facebook and Google for the year 2012.

Considering all such facts, figures and projections, its difficult to say that Twitter can ever influence the online ad display market, atleast for next 4-5 years. The micro-blogging platform really need to go back to its revenue drawing board to chart out other possible revenue generation streams that could prove as cash cow for the company.

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