Users were more likely to click on a Twitter ad than a Facebook ad in the first quarter, according to a recent study. Yet Facebook will likely be valued at more than $100 billion following its initial public offering next month, while Twitter struggles to find a consistent revenue stream and remains several years away from an IPO of its own.
Why?
The short answer is volume: Twitter has yet to fully launch a self-service ad-buying program, making it hard for all but the biggest users to undertake effective campaigns. Facebook, on the other hand, can attribute its click-through rates to sheer volume of ads, thanks in part to the ability for even advertisers with small budgets to purchase advertising without going through a sales rep.
