SAN FRANCISCO, March 27 Twitter will generate
nearly $1 billion in ad revenue next year due to a surge in
mobile advertising on its Web microblogging service, according
to a report released on Wednesday.
Mobile ads will account for roughly half of Twitter's
advertising revenue this year and will make up more than 60
percent of the company's ad revenue by 2015 according to
research firm eMarketer.
The increasing popularity of Twitter's mobile ads -
introduced in March 2012 - caused eMarketer to raise its 2014 ad
revenue estimates for Twitter to $950 million, versus its
previous estimate of roughly $800 million. Twitters' ad revenue
this year will total $582.8 million, according to the report,
roughly double what it was in 2012.
Twitter, which allows people to share 140-character messages
on its online service, is privately held and does not disclose
With more than 200 million monthly active users, Twitter is
among the Web's most popular social networking services, along
with Facebook Inc, and is expected by analysts to float
shares to the public within two years.
As consumers increasingly access the Web on smartphones,
mobile ads have become increasingly important to the businesses
of Web companies such as Facebook and Google Inc.
Facebook said in January that its mobile ad revenue doubled from
the third quarter to the fourth quarter, representing roughly 23
percent of its $1.33 billion in fourth-quarter ad revenue.
"Twitter has ultimately benefited from the increased focus
on mobile by competitors like Google and Facebook, which have
both expanded their own mobile ad offerings and worked to
convince advertisers to shift dollars to mobile devices,"
eMarketer said on Wednesday.
eMarketer said its revenue forecasts are based on analysis
of reports that track media buying trends, Twitter usage data
and interviews with executives at advertising agencies, online
publishers and others.