- Facebook beating Twitter’s growth due to mobile surge
The UK revenue for microblogging services is set to double to around £100million, compared to the £570million expected from social networks.
Twitter alone is forecast to generate a UK revenue of almost £100m, doubling from last year. Facebook is also estimated a significant boost in revenue by 40%, up to a massive £570million. However, Twitter will not reach its target of a UK revenue of £180m by 2015, failing to meet expectations from investors.
According to a report from eMarketer, this year Twitter’s UK business will make £96.9m. Twitter is demonstrating impressive increase from the £46.8m made last year, with only £1.3m made previously in 2011. Facebook is estimated to see a 40% boost year-on-year, plus an extra 27% rise to £721m in 2015. They should generate £568m in UK revenue this year.
Another business seeing their UK revenue thriving is Google UK, with an estimated income of 2.9bn this year, a growth of 16%, predicted to rise another 12% by 2015 to £3.28bn. However, Twitter UK is expected to see almost 60% growth in 2015, with an estimate of up to £150m growth.
Despite this, Twitter has seen its share price dramatically falling after reporting first-quarter results in April this year, failing to rise to the high expectations of its ability to continue to expand its worldwide audience. £30m has been slashed off of Twitter’s estimated forecast by eMarketer, of their UK 2015 revenues of £180m. With the UK making up 12.7% of their total ad revenues for the year, projected at 13.2% next year, Twitter’s UK business is growing more important for the company globally.
Facebook, on the other hand, is far out-performing Twitter, with their first-quarter results tripling their global profits. This has largely been down to a successful mobile ad strategy producing revenues. Drastic revisions have been made in eMarketer’s 2015 forecast for UK business, since 2013 revenues have been amended as £405m as opposed to £333m. The jump to total revenues of £568m in 2014, giving a total growth of 40%, has led eMarketer to up their forecast for December significantly from £516m to £721m.
Faacebook’s successful ad campaign in the UK now gives Google new competition in the display ad market. However, the core of Google’s UK business remains as search advertising, providing 70% of the total revenues. This year, income from display advertising alone will bring in £556m, soaring to £799 by the end of 2015.
Over 90% of Facebook’s revenue comes from display ads, delivering £531m this year, and £686m in 2015. This year, eMarketer predicts that we will see Google take 23% of display advertising in the UK, but Facebook won’t be far behind, hitting the 22% mark.
2015 will see Google extend to a 28% share, and Facebook to a 25% share of all UK digital advertising.
Author: Steve Pailthorpe - Follow us on Google+