Twitter Ad Revenue Poised to Explode to $150 Million in 2011

Although less than a year old, Twitter’s advertising platform – its Promoted Products suite – is expected to see massive growth in 2011. eMarketer reports that Twitter will see $150 million in ad revenue this year, which is significantly higher than the $45 million it made in 2010.

Twitter rolled out its Promoted Products, which include Promoted Tweets, Promoted Trends and Promoted Accounts, starting April 2010. By October, the company had a complete offering of advertising solutions for potential advertisers interested in amplifying their Twitter presence and reaching the nearly 200 million accounts currently registered.

This eMarketer report is the first that takes a long hard look at Twitter’s advertising potential using real numbers, and the results show that the Promoted Products are here to stay. The company notes that along with Promoted Products, Twitter is expected to unveil an advertising and analytics product to the general Twitter public in the coming year, which will sweeten the deal for small businesses in particular.

eMarketer also predicts that Twitter’s ad revenue will increase to $250 million in 2012 if they can keep advertisers interested and prove themselves to be a viable secondary option to the much larger Facebook.

Interestingly, by 2012, Twitter will have likely surpassed MySpace in advertising revenue, if trends continue.

Debra Aho Williamson, eMarketer principal analyst, is cautiously optimistic about Twitter’s potential for growth:

“If Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook, it will succeed in gaining revenue. In 2011 it must work overtime to give its early advertisers a positive experience.”