January 31, 2012, 12:55 PM

Twitter’s revenue could reach $540 million by 2014

Last year the microblogging service generated $139.5 million, eMarketer says.

Zak Stambor

Managing Editor

Lead Photo

Twitter is increasingly focused on the bottom line. That’s why the microblogging service is rolling out new ad formats, such as Promoted Tweets in Timelines, which enables a marketer to pay to target a consumer with a tweet based on his location, demographics or interests, and making acquisitions that could pave the way for a self-service ad format. All of Twitter’s existing ad formats require marketers to work with a member of Twitter’s sales team.

Those efforts may help Twitter’s revenue reach $259.9 million this year, an 86.3% jump from $139.5 million in 2011, according to a forecast released today from research firm eMarketer.

The forecast says that Twitter’s revenue will continue to increase over in the next two years, but at a slower pace. EMarketer says that Twitter’s revenue will reach $399.5 million in 2013, a 53.7% jump from 2012, and $540.0 million in 2014, a 35.2% increase from 2013.

90% of Twitter’s revenues come from U.S.-based advertisers, says eMarketer. Marketers from other countries contributed just $26 million to the microblogging service’s ad revenues in 2011. But that will likely begin to change in the next few years, says the report, even though it suggests that 83% of dollars will still come from the U.S. marketers in 2014.

Despite its strong growth, Twitter’s revenue represented only about 5% of the estimated $2.74 billion marketers spent on social marketing last year, according to eMarketer. Facebook attracts most of the social marketing spend. U.S. marketers spent roughly $2.01 billion on Facebook ads in 2011, up 66.1% from $1.21 billion a year earlier.

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