As useful as some find the micro-blogging website Twitter, many analysts have expressed concerns as to how this website will generate greater revenues so that it can continue to grow. Well, if the projections are right, it would seem that the social networking site is on the right track because the most recent estimates suggest that Twitter will achieve $1 billion in revenues by 2014.
This information comes from sources close to Twitter that have leaked the company’s financial numbers to Bloomberg. Assuming that these numbers are accurate, they paint an entirely different financial picture for the company. Past revenue forecasts that have been put forward by industry analysts have suggested that Twitter would make perhaps half this amount in revenue. Instead, what we see here is that Twitter’s advertising models are in fact working which would imply that advertisers are seeing value for their advertising dollars.
It was about two years ago when Twitter introduced their ad platform and this was then followed up with a self service ad program that the site introduced this year so as to meed the needs smaller advertisers. If the estimates regarding Twitter’s ad revenue are correct for 2014, it will mean that it took the social networking site 8 years to reach $1 billion in revenue. To put this into perspective, Facebook took 6 years to reach this milestone while Google needed 5 years.