Big brands buying ads are giving Twitter a big revenue boost.
Consumer packaged goods brands Kraft Heinz, Nestle and Coca-Cola are among the top five spenders on Twitter ads, according to digital marketing and advertising insight agency Pathmatics. All those ad sales have helped Twitter see a 503% increase in revenue from 2012 to 2018, according to the agency's blog post.
Pathmatics said it expects Twitter to continue seeing annual revenue growth of 10% through 2021. Such projections can only be helping the social media company's stock which is up more than 39% as of today's close.
The social media platform presents brands with an opportunity to put themselves in front of many customers; worldwide, 42% of Internet users have a Twitter account, according to Pathmatics.
Twitter advertisers invest an average of more than 75 percent of their ad spend on video post ads, according to the firm.
Twitter has also said it’s seen an increase in advertising revenue. Last quarter, the company reported $727 million in ad revenue, a 21 percent increase year-over-year.
Twitter's shift toward video appears to be paying off. Monetizable Daily Active Users (mDAUs), an audience metric that Twitter introduced in place of monthly active users, rose 14% to 139 million worldwide for the period.
The company is expected to report Q3 results on Oct. 24.