Twitter poised to hike Promoted Trends advertiser rates

Twitter is preparing to increase advertiser rates for its Promoted Trends effort, which inserts marketing messages into lists of hot topics trending across the microblogging platform. Initially priced as high as $100,000 per day, Promoted Trends purchases now average between $70,000 and $80,000--however, All Things Digital reports Twitter is now informing buyers it will consistently charge between $100,000 and $120,000 for Promoted Trends placement. At present, Twitter sells only one Promoted Trends slot per day--insiders indicate the startup is mulling whether to begin separating campaigns across distinct geographies, running multiple promotions per day.

Twitter remains the target of intense acquisition interest, with Silicon Valley giants Google (NASDAQ:GOOG) and Facebook reportedly among the companies in low-level discussions to purchase the startup. Citing sources familiar with the talks, The Wall Street Journal stated this week that discussions with Twitter suitors have yielded an estimated value between $8 billion and $10 billion--insiders say Twitter generated 2010 revenues of $45 million but lost money as a result of spending on hiring and data centers, while 2011 revenues are expected to reach the $100 million-$110 million range. Despite the valuations, the negotiations have so far gone nowhere, sources add.

As of December 2010, Twitter is valued at $3.7 billion after closing a $200 million funding round led by Kleiner Perkins Caufield & Byers. Twitter raised $100 million in September 2009, when users totaled about 25 million--T. Rowe Price Group Inc., Insight Venture Partners, Spark Capital and Institutional Venture Partners all contributed to the round. At that time, the startup was valued at about $1 billion. On Wednesday, venture capital firm Andreessen Horowitz said it had purchased over $80 million of Twitter shares through exchanges for private-company stock; the firm declined to specify what percentage of Twitter those shares represent.

Twitter now boasts more than 175 million registered users worldwide. According to CEO Dick Costolo, users sent more than 25 billion tweets in 2010, with more than 100 million new registered accounts signing on during the same period. Sixteen percent of all new users begin tweeting on mobile devices, and 46 percent of all active users now make mobile a staple of their Twitter experience.

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