Twitter is ahead of Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG) when it comes to advertising on mobile devices such as smartphones and tablets, a platform which this year will provide the online social networking and microblogging company with more than half its revenue, according to eMarketer.
“This service was built from day one to be useful on mobile devices. Is mobile a problem? No,” said Nate Elliott, an analyst at Forrester Research Inc. about Twitter.
Facebook earned in the second quarter 41 percent of its revenue from mobile advertising, while Google, operator of the most used search engine worldwide, has earned this year less than a quarter of its revenue from mobile advertising. Chief Executive Officer mark Zuckerberg said in July that Facebook’s revenue from mobile ads will account for more than 50 percent of advertising revenue in the near future.
“Mobile is clearly for Twitter the critical piece. You’ve seen them really take, I think, a forward view into how to work with advertisers in that arena. We’re excited about both the growth and the potential that we’ve seen in that business,” said Justin Merickel, senior director of advertising solutions at Adobe Systems Inc.
Twitter is only a small part of the mobile advertising market, estimated this year to be around $16.7 billion, but has the advantage of starting focusing on this area earlier.
This could reduce investors’ fears about the intention of Twitter to submit the paperwork for an initial public offering, given the fact that this failure on the segment of mobile devices has affected other Internet companies.
Facebook and Google, which initially focused on online advertising accessed from desktop computers have recently redesigned their business model at a time when users go online more and more on smartphones and tablets.
Twitter announced last week that it plans for an IPO, without giving too many details about the offering. The company was valued at approximately $10 billion in the latest financing operations carried out on the private market.
Reply