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March 28, 2013

Twitter ad revenue may reach $1bn in 2014: eMarketer

More than half of Twitter's ad revenues are expected to come from mobile advertising this year

By CBR Staff Writer

Market research firm eMarketer predicts that Twitter ad revenue will double this year to $582.8m, compared to $288m last year, and reach $1bn in 2014.

According to the research firm, more than half of Twitter’s ad revenues, about 53%, will come from mobile advertising this year, up from virtually no ad revenue from mobile in 2011.

eMarketer predicts that the micro blogging site will generate $1.33bn in global ad revenue, more than 60% of which will come from mobile advertising.

Analysts believe Twitter has benefited from the increased focus on mobile by competitors like Google and Facebook, who expanded their own mobile ad offerings and worked to convince advertisers to shift dollars to mobile devices.

Twitter is expected to earn $308.9m in mobile ad revenue this year, which is more than the company earned in total, from any ad type, in 2012, when it made $138.4m from ads.

The US will account for about 83% of Twitter’s ad revenue this year, which is down when compared to 90% it accounted in 2012.

eMarketer predicts that by 2015, Twitter’s continued expansion of foreign sales operations will help non-US ad revenue reach $319m, up from just under $100m this year.

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Last month, Twitter launched a new advertising application programming interface (API) that allows marketers to connect their current ad management software to their Twitter account and automate their ads on the micro-messaging site.

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