On January 24, eMarketer predicted that Twitter would bring in a bit over $150 million in 2011 and $250 million in 2012. (You can see the chart at the bottom of this column.) Is this realistic? I think it may be from what I have learned and am writing about below.
Twitter’s “Promoted” Products
Recently my firm had a very interesting series of calls and meetings with Twitter and I got my head around all the details of its advertising or “Promoted” products. Twitter’s offerings have three attributes that really struck the value/performance chord in my book:
Cost-per-click from its Promoted Tweets
Cost-per-action (actually cost-per-follower) from its Promoted Accounts
Exclusivity from its Promoted Trends offering (basically Twitter’s version of a home page takeover)
So here is a quick breakdown of what those products are offering:
Mad Ave Better Take Note — You Are Digital, or You Are Very, Very Unimportant
Ad Age, 4/25/11
Digital services accounted for an estimated $8.5 billion (28%) of the $30.4 billion in 2010 U.S. revenue generated by the 900-plus advertising and marketing-services agencies that Ad Age analyzed for Agency Report 2011.
Digital’s share of agency revenue rose from 25.8% in 2009. In dollar terms, agencies’ digital revenue jumped 16.9% in 2010.
One point is clear: Digital has become a standard tool across every agency discipline.
To be sure, six in 10 digital dollars — or $5.1 billion — last year went to digital-specialty agencies such as Publicis Groupe’s Digitas and Sapient Corp.’s SapientNitro.
An 18% rise in global paid-search query volume should help revenue grow by 20% in 2011, compared with 18% year-on-year revenue growth in fiscal 2010, according to a report released Monday from J.P. Morgan. The analyst firm believes opportunities for paid search in the international market will become more significant than in the U.S.
The market in the United Kingdom remains at par or ahead of the U.S. market, but the development of the overall international paid-search market is still more than two years behind the United States. While J.P. Morgan analysts expect the U.S. to experience 12% year-on-year query growth in 2011, international markets will see a 19% lift. The firm’s estimates put paid-search revenue growth at 25% to $25.7 billion.
Ad Age, 12/20/10
Next Chapter: 14 Companies on Media 100 Dig Out of Bankruptcy as Firms’ Creditors Trade Debt for Equity
The recession officially ended in June 2009, and the media business began a modest recovery in first-half 2010.
Reported revenue for the nation’s top media firms climbed 6.1% in the first six months of 2010, according to Ad Age’s analysis. U.S. media employment has added 4,600 jobs since hitting its downturn nadir in May 2010.
Measured-media spending turned north in first-quarter 2010, marking the first year-over-year quarterly gain since first-quarter 2008, according to WPP’s Kantar Media.
IDC News Release, 12/6/10
According to International Data Corporation’s (IDC) EMEA Quarterly Server Tracker, EMEA server revenue in the third quarter of 2010 reached $3.1 billion, up 6.4% on the same quarter last year. The number of servers shipped was up 10.2% year on year after nearly 550,000 were sold. The strong results, with shipment volume back to double-digit growth, and revenue growth also significant, must be read in the context of a very weak third quarter last year, favoring year-to-date comparisons. When looking at revenue in absolute terms, it becomes apparent that the server market results are a long way from the peak seen in the fourth quarter of 2007, when revenue reached $5.4 billion.
By technology, x86 industry standard servers consolidated their position as the dominant technology, with $2.2 billion in revenue and 533,000 shipment units, an annual growth of 26.5% and 11.0% respectively. It is worth noting that the strong revenue growth, more than double the unit growth rate, is a positive sign that industry standard servers are avoiding the trend toward commoditization seen in previous quarters. Higher ASVs are a sign that enterprises are moving their mission-critical applications to x86 from RISC, CISC, and EPIC, and demanding more richly configured systems with higher availability features.
IDC News Release, 12/1/10
According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 13.2% year over year to $11.8 billion in the third quarter of 2010 (3Q10). This is the third consecutive quarter of year-over-year revenue growth and the fastest quarterly revenue growth since 2000, as market demand continued to improve around the world. Server unit shipments increased 13.1% year over year in 3Q10; however, server shipment growth moderated slightly over the strong 23.1% year-over-year shipment growth reported in the second quarter of 2010.
Volume systems experienced the sharpest improvement with year-over-year revenue increasing 22.8%, the fourth consecutive quarter of positive growth for the segment. Midrange server demand improved significantly with year-over-year growth of 19.8%, the segment’s second consecutive quarter of positive growth following nine quarters of decline and a sign that server market conditions are improving more broadly beyond volume systems. Demand for high-end enterprise systems continued to be soft, as revenue declined 10.4% when compared to 3Q09. This is the eighth consecutive quarter of contraction in the high-end enterprise server segment of the server market.
IAB News Release, 11/17/10
Highest Quarter Ever, with Revenues Up 17% from Q3 ’09
U.S. Internet advertising revenues hit $6.4 billion in the third quarter of 2010, representing the highest quarterly result ever for the online advertising industry and a 17% increase from the same period in 2009. The third quarter 2010 revenue estimates were announced today by the Interactive Advertising Bureau (IAB) and PwC US.
“The Internet has transformed consumers’ lives and how they experience entertainment, information and brands,” said Randall Rothenberg, President & CEO, IAB. “Marketers have embraced digital media because that’s where they can engage with their consumers. This vibrant, innovative industry is creating jobs and contributing to the growth of the U.S. economy.”