Tuesday, February 01, 2011

eMarketer Predicting a Healthy Future for Twitter

A report released on Monday, January 24 predicted a very healthy future for Twitter. It claimed that the social networking phenomenon should triple its growth in revenues from what the site earned in 2010.

The report from eMarketer predicts that Twitter will earn more than $150 million in revenues from advertising in 2011. This is a little more than triple times the amount that they earned in 2010. They even went so far as predicting that in 2012 the company should earn as much as $250 million.

Twitter seems to have exploded in the past year. Almost 8 percent of U.S. Internet users are on Twitter. The site not only has an incredible presence on the Web but also on most smartphone platforms.

Twitter just seems to continue to expand. Just this month Twitter for the Mac debuted. Twitter’s Carolyn Penner wrote, "This app gives Twitter users another fast and convenient way to stay connected to what they care about most. Tweets appear in real-time (using our streaming API), and the app auto-shortens URLs and has lots of useful keyboard shortcuts."

Penner claims that the new app is “three times faster than its original version,” which was called Tweetie for Mac. This original app was created by a company that Twitter had acquired in April called atebits. Penner continued saying, “We acquired atebits with a focus on launching our own Twitter iPhone application. Since then, we've been asked repeatedly for a new version of Tweetie for Mac. We decided that the new version fits well into our goal of ensuring that mainstream users will have the best possible experience on all platforms."

“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,” said Debra Aho Williamson, eMarketer principal analyst. “In 2011 it must work overtime to give its early advertisers a positive experience.”

eMarketer really believes that Twitter will bring in $150 million in revenue in 2011 and $250 million in 2012. Really though, this looks like nothing compared to what they are predicting for Facebook. The firm estimates that in 2011 Facebook will bring in $4.05 billion in revenues and $5.74 billion in 2012. Unfortunately for MySpace, eMarketer is predicting that their revenues will be heading downward. MySpace’s ad revenues in 2010 brought in $288 million, but eMarketer believes that in 2011 MySpace will only bring in $184 million and $156 million in 2012.

Twitter is really doing well and, according to eMarketer, will continue to do well. Ever since Twitter’s founders Biz Stone and Ev Williams talked at the Chip conference and promised Twitter users that they would smooth out the company’s developer relations and improve its business operations, Twitter has done even better than it was doing.

They really have been improving, and the proof is in the numbers. In November 2010 Twitter reached an uptime of 100 percent. According to Royal Pingdom’s uptime tracker, the site was only down for a single minute the whole month. In the early years of the Twitter, the site was plagued by the “fail whale.” They really have taken care of this problem though. In December and January the site hit an uptime of 99.83 and 99.92 percent respectively.

I agree with eMarketer that Twitter will have a very bright future. I have definitely personally seen the expansion of the use of Twitter among my friends, family members, and colleagues, and obviously, this seems to be happening all around the world. I don’t know if Twitter will meet the marks that eMarketer has set for them concerning ad revenues, but I guess we won’t know for at least another year.

Computer Service Now

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