The success of Twitter‘s Promoted Products will propel the company into $400 million in revenue in 2013 compared to $45 million last year, says a new report.
Twitter will earn $139.5 million this year, a 210% jump over last year, according to eMarketer. Debra Aho Williamson, principal analyst at eMarketer, credited Promoted Products’ success for the rosy estimate.
“Since their debut in April 2010, Twitter’s Promoted Products have proven successful in the U.S.,” Williamson said in a statement from eMarketer. “Marketers have shown solid engagement rates with Twitter advertising — in some cases better than those on Facebook — despite Twitter’s relatively smaller audience.”
Twitter has 100 million active users compared to 800 million for Facebook.
The growth estimate for Twitter in 2011 is downgraded from eMarketer’s previous prediction of $150 million in revenues in January, a function of Twitter’s slower-than-expected rollout of various ad initiatives, including a self-serve ad platform and ad sales offices abroad. Twitter just created a sales staff in the UK– its first foreign office — this month, which is why 96% of Twitter’s ad revenues will come from the U.S. this year, eMarketer predicts. The researcher says that by 2013, 88% of revenues will come from the U.S.