Twitpic makes profit announcement
The monetisation of social media may be closer than first thought after Twitpic claimed to have entered the black.
Noah Everett, founder of Twitpic, said in an interview with business website Mixergy that the photo-sharing site turned a £430,000 profit in 2009. That was made possible by total advertising revenues of between £0.92 million and £1.23 million.
However, Mr Everett believes the company still has plenty of scope for growth. He said: "Our goal and our projection is seen to put us at about three to four [million dollars] in about a year or so. And that's our goal. As of right now, with our current revenue, we're holding a 70 per cent profit margin."
Twitpic has handled 60m photos
Founded in 2008, Twitpic has already been used to share some 60 million pictures on Twitter to date. According to Mr Everett, it gains 22,000 new users every day and currently has a total membership of almost 6.5 million. And he claimed that the privately-owned company recently turned down a bid from an undisclosed that was "much higher than $10 million".
Twitter has no search or display ads and is famously yet to turn a profit since launching in 2006. But last September, the micro-blogging service generated lots of excitement among digital marketers when the Twitter Terms of Service were redrafted. Writing on an official blog post, co-founder Biz Stone explained that one of the reasons for the change was that the service wanted to "leave the door open for advertising".