Twitter, Starcom close ad deal
Multi-million-dollar accord to cover ad placement, data feed for media campaign planning
Micro-blogging service Twitter is said to have closed an advertising deal, worth potentially hundreds of millions of dollars, with media agency Starcom MediaVest Group (SMG), Reuters reported.
"In about 18 months, Twitter has gone from an experiment to essential," Laura Desmond, chief executive of Starcom said yesterday.
According to estimates from analyst firm eMarketer Inc, Twitter is set to make nearly $600m in ad revenue this year, but may increase this to as much as $1bn in 2014. The service's expanding active user base of 200m has led many analysts to speak of an IPO as early as next year.
SMG directs media campaigns on behalf of corporate entities such as Samsung Electronics and Kellogg. The deal with Twitter covers preferred inventory and access to the messaging firm's data feed. Insiders said the agreement is worth up to hundreds of millions of dollars.
"We think agencies play a big role bringing interesting new ideas to the platform and we want to support that," said Adam Bain, president of global revenue at Twitter.
"We want to create a great framework to measure."