Posted January 24, 2011 7:15 am by with 5 comments

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If only it were that easy, huh? Twitter enters into a pivotal year in its existence because of some nagging questions that still exist about their business model and their ability to live up to a supposed $4 billion dollar valuation.

Add to the fact that there is blood in the water around a potential IPO for relative newcomer Groupon (with a $15 billion valuation) and the continued growth of Facebook both in terms of revenue and valuation, and the pressure continues to grow for Twitter to show some business chops.

eMarketer is taking a swing at ad revenue predictions for Twitter and they think that 2011 will be a good year and their magic 8 ball says 2012 should even better.

eMarketer followed Facebook’s ascendancy to much larger than anticipated revenues in 2010 so we suspect that Twitter is hoping for some of that same love in 2011.

eMarketer also took a look into the crystal ball for ad revenues worldwide by venue over the next couple of years and the news is good. That is unless you are MySpace which is predicted to be the only major player in the space to see revenues decline. That’s no indictment of the medium but rather the fact that MySpace is looking more and more like the social network most likely to be left behind and become a business history footnote.

What are your thoughts on these predictions? Too much? Too little? Just right?

  • i never expected twitter would do the magic, yes facebook indeed desrves.

  • Cynthia

    I predict that in the next two years, Twitter is going to expand their business model to include something less “here today, gone two seconds from now.” I don’t know exactly how or what it’s going to be, but that’s going to be where they get a big boost in ad revenue.

  • Yo Frank – those are some pretty hefty ad revenue projections for a company who said they weren’t an advertising platform :p

    • Ahh yes Mark. What people won’t do to get money in the coffers! Guess I can’t blame them but with the number of accounts they have and the numbers this prediction is showing it seems awful slow to get to revenue that will justify a $4 billion valuation. But hey, what do I know?

  • Yep – I’m still scratching my head on the $50 billion dollar valuation given to that other social network too… the one us dumb-fu… keep giving our personal information to… haha – (pardon my French)

    It will be interesting to see how all this craziness pans out.

    I look forward to chatting again soon Frank.