Twitter recently launched a self serve ad platform and it could generate significant revenue for the startup, reports Ad Age.
According to GroupM, an ad agency that released a white paper on digital auctions, Twitter’s self serve ad platform could generate $300-400 million in ad revenue.
That’s a lot more than the $260 million eMarketer predicted. Last year the startup generated about $140 million, tripling its 2010 ad revenue.
Twitter’s ad platform is making it more expensive for brands to advertise in 140 characters, though. The GroupM report says prices could be hiked up 137 per cent.
“As more players enter Twitter’s still nascent auction environment without knowing what to bid, the chances that they’ll bid too much and raise the costs per follower and cost per engages increases,” Ad Age writes.
For more on the report, head over to Ad Age >
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.