Advertisers seem to be finding a ton of value toting their products and services on Twitter, the microblogging service that has yet to seek an IPO. The return on investment is apparently so good that 80 percent of the companies that advertise on Twitter end up renewing their marketing efforts, Twitter CEO Dick Costolo said on Wednesday.
Twitter now has more than 200 million registered user accounts, giving advertisers access to more than 400 million eyeballs, Reuters reports. According to Costolo, there are about 600 advertisers on Twitter, up from 150 from 2010. It's estimated Twitter will bring in about $150 million in ad revenue this year, a tidy sum, but still well short of Facebook's $4 billion in ad revenue. This begs the question, 'Is Twitter profitable?'
Costolo wouldn't answer that one, but did say his company doesn't feel the "need to optimize for short-term revenue." That's probably true, given that Twitter was valued at $3.7 billion back in December after completing a $200 million funding round. In March, an auction of Twitter shares on the secondary market valued the company at $7 billion. Should Twitter go public, it will likely skyrocket the way LinkedIn did.