Twitter Ad Revenues to Top $1 Billion in 2014 - Half from Mobile Phones

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Research firm eMarketer says that it has raised its forecast for advertising spending on Twitter for 2013 and 2014 estimating the company will earn $582.8 million in global ad revenue in 2013 before nearing $1 billion next year.

eMarketer said that it believes 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.

According to the new forecast, more than half of Twitter's ad revenues -- about 53% -- will come from mobile advertising this year, up from virtually no ad revenue from mobile in 2011.

Advertising on mobile devices will be where Twitter sees the most incremental growth over the next two years. By 2015, Twitter is expected to pull in $1.33 billion in worldwide ad revenue, more than 60% of which will come from mobile advertising.

The bulk of Twitter's ad revenue is expected to continue to come from the USA -- about 83% this year, down from 90% in 2012. By 2015, Twitter's continued expansion of foreign sales operations is expected to help non-US ad revenue reach $319 million, up from just under $100 million this year.

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