Twitter will see $226 million in ad revenues in 2012, showing growth of 83 percent on last year’s total of $139.5 million, predicts market analytics firm eMarketer.
Over the next three years, eMarketer expects Twitter’s growth in ad revenue to remain solid, but slowly taper off, with the social networking platform targeting $399.5 million in revenue next year and $540 million in 2014.
These numbers would show year-by-year ad revenue gains of 55 percent and 36 percent respectively which, while still positive, are indicative of a broader tightening in net growth.
Some 90 percent of Twitter’s revenues currently come from the US, with just $26 million in contributions expected from other countries this year. This figure is expected to increase by 2014 as Twitter targets emerging markets, although a disproportionate 83 percent of ad dollars are still expected to come from the US. Twitter’s recent shift in its policy towards censorship is expected to open some doors overseas, although other nations are likely to continue to remain out of reach, such as China.
“We would love for people in China to express themselves,” Twitter CEO Dick Costolo said at AllThingsD’s Dive Into Media conference. “Under the current situation, that’s not possible.”
Twitter’s new political ads are expected to play a major role in the company’s revenue stream in 2012, and overall the firm is looking to adopt a stricter business model, and focus, going forward.
“We have figured out the business,” said Costolo. “The advertising model is working.”