As pressure mounts on today’s leading social networks to better monetize their platforms, Twitter seems to be hitting its stride with Promoted Trends.
According to published reports Monday, the social network of 500 million registered users (200 million of which are believed to be active) has begun charging companies $200,000 a day for the purchase of a Promoted Trend in the United States.
The cost of a Promoted Trend has more than doubled since the ad feature was first introduced in 2010 at a cost of $80,000 per day.
Clearly, Twitter’s offering had made a dramatic impact on social media advertising as heavyweight advertisers like MTV, Microsoft, Staples, and Spike TV continue to pay for Promoted Trends.
It doesn’t yet appear that there are enough paying customers to fill the Promoted Trends slot on a daily basis, but sources inside Twitter think it’s only a matter of time before that reality changes. If so, $200,000 a day will deliver more than $70 million annually to Twitter’s bottom line in the U.S. alone.
For the time being, we don’t know just how big Twitter’s ad sales are, even though eMarketer now estimates that the microblogging giant’s ad revenues will likely reach $545 million in 2013.
With an all but certain IPO on the horizon, the popularity of Promoted Trends could contribute heavily to early investor enthusiasm, so long as advertisers continue their trend of paying for Trends.