Grim News About Twitter Ad Revenue From BIA/Kelsey

Written on
May 2, 2011 
Gavin Dunaway  |

twitter_smallADOTAS – The latest report from BIA/Kelsey predicts social media advertising will expand from a $2.1 billion market in 2010 to an $8.3 billion market by 2015, but a little deeper digging unearths some foreboding data about Twitter’s revenue prospects.

The vast amount of social media ad dollars will continue to go to display, which is expected to see $7.7 billion in spend by 2015. Non-display revenue — Promoted Tweets, Promoted Accounts and all the other stuff of Twitter advertising — will grow to $600 million in 2015. Apparently non-display didn’t make squat in 2010 — according to BIA/Kelsey, display accounted for all 2010 social media revenue though other sources have reported Twitter’s 2010 revenue to be around $45 million.

Previously, eMarketer predicted that Twitter would bring in $150 million in 2011 and $250 million in 2012, so BIA’s prediction doesn’t seem very far off. I can’t be the only one thinking, “That’s it?” But last week I commented that Twitter’s beta text ads would bring in incremental revenue at best — there is no Twitter ad product that promises exponential revenue growth, something that’s ever-more haunting since North American user growth stalled a while ago.

As Twitter’s valuation keeps skyrocketing, it’s getting tougher to turn a blind eye to these grim revenue estimates.

Gavin Dunaway is Editor, U.S. at AdMonsters, a leading trade publication, event producer and service provider for the online advertising industry. Previously, he had been Senior Editor of Adotas, where he arrived after years of ping-ponging around various industry publications. This Washington, D.C. native and George Mason University graduate also enjoys playing electric guitar so loud that the walls shake.

Reader Comments.

Social ain’t search…and it’s not real referral marketing either.

Posted by Hunter Gatherer | 1:53 pm on May 2, 2011.

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