This short blog post should inspire student conversations about the web in my composition and desktop publishing classes. I am looking forward to discussing advertising’s place on the web with my English 110 students for our next composition unit, Argument and Technology: the Future of Social Networking, Websites, and Communication.
Originally posted on Gigaom:
As Twitter tries to get its financial house in order prior to going public at a multibillion-dollar valuation, one of the aspects of its business that will be under an intense spotlight — as it was with Facebook (s fb) — is the company’s ability to generate advertising income, since that makes up the vast majority of its revenue. Among other things, Twitter will have to show that in-stream ads not only work but are growing rapidly enough to justify a market value as high as $20 billion.
As Quartz has pointed out with a helpful math lesson, Twitter’s revenue per user is much lower than Facebook’s, currently running at about $0.55 vs. $1.41. To some extent the two are apples and oranges, since Facebook has a lot more variety when it comes to ad formats and can therefore charge more — but even so, investors are still going to want to see higher numbers. Many of them are going to be looking at how Twitter compares to Google (s goog) and Facebook and even LinkedIn (s lnkd), and they may not like what they see.
Twitter ad revenues were $269.4m in 2012. Compares to $32.7bn at Google; $4.3bn at Facebook and $3.5bn at Yahoo.—
Emily Steel (@emilysteel) October 03, 2013