Twitter is aiming to grow its sales volume to at least US$1 billion in 2014 based on its forecast of expected advertising demand. This demand is dependent on the company being able to move into global markets and continual enhancement of its ad platform though, one report notes.
Bloomberg reported on Saturday that the microblogging service provider will grow about twice as fast as what some analysts are now predicting to reach its forecast, citing two unnamed sources. These people with knowledge of the matter added the company could change or miss the forecasts.
EMarketer have earlier stated that Twitter will reach US$540 million in ad sales in 2014, which make up almost all of its revenue, up from the US$139.5 million in 2011.
However, the company's progress is still slower than rivals Google and Facebook. Bloomberg noted that the former generated its first billion five years after founding, while the latter crossed the line in six years. Twitter will be eight years old in 2014, after its inception in 2006.
Importance of overseas growth
The report also noted that Twitter, under CEO Dick Costolo, is working to expand internationally into economies such as Japan to reduce its reliance on the American market. EMarketer had estimated in January that the company's percentage of revenue from the U.S. will fall to 83 percent in 2014 from about 90 percent in 2012.
Its overseas expansion may hit roadblocks along the way though, particularly in countries intent on censoring the Web. Pakistan, for one, had briefly restricted access to the service after Twitter failed to respond to the government's request to remove "blasphemous" caricatures of the Prophet Mohammed from its site.
Beyond market presence, the research firm also signaled concern over its pace in rolling out enhancements to its advertising platform. Last September, EMarket reduced its estimates for Twitter's revenue because of the company's "slowness" in rolling out its self-serve ad platform, Bloomberg added.