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$150 Million Ad Revenue Estimated for Twitter in 2011

In April 2010, Twitter introduced Ad sales and now estimates by Emarkerter Inc, indicate that it will likely hit $150 million this year as more companies use it to do PR and spread marketing messages. Emarketer also predicts that Twitter may reach $250 million in ad revenue by 2012.

Twitter, which is now valued at $3.7 billion after several funding rounds, has more than 175 million users globally and competes for advertising with Google and Facebook. However, according reports only 8% of web users currently use Twitter. Yet to generate more ad sales, analysts predict that Twitter will need to unveil a self-service ad platform that doesn’t require contact with sales people, similar to the one Google and Facebook currently use. The service should make it easier for anyone to market their services and products on Twitter.

The Emarketer estimate includes not only ad revenue from message streams but also partnerships with search engines and other sites. Currently, Twitter most notable visible advertising is its “promoted trends” that lets major brands pay for placement in the top list of trending topics.

Compared to Facebook’s or Google’s, Twitter revenues will be small, but the report expects Twitter to generate more dollars than MySpace, a one time darling in the social media space. According to comScore, Twitter overtook Myspace in unique monthly visitors by August 2010.

Considering that Tweets are comprised of a 140 character message, $150 million dollar for ad revenue is a significant feat.

Photo Courtesy of Josh Semans