With a great deal of media attention being harnessed, Twitter is bound to pump up its revenue by 300% this year. This prediction from eMarketer goes with a premise of the social networking site capitalizing on ads and its flourishing products.

Debra Aho Williamson, eMarketer principal analyst, sees huge potential on ads to boost Twitter’s revenue this year. She relates, “If Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook, it will succeed in gaining revenue. In 2011 it must work overtime to give its early advertisers a positive experience.”

In November 2010, Pew Internet & American Life Project noted that just 8% of online Americans use Twitter service. However, eMarketer is quite optimistic that earnings of Facebook’s runner-up will reach upwards of $150 million, despite the growing competition. Further forecasts see a whopping $250 million in revenue for the year 2012, again with an assertion that Twitter will live up to the hype.

Twitter, which has more than 175 million registered users globally, is currently competing for advertising dollars with larger companies like search giant Google Inc. and social-networking rival Facebook.  The company will need to enhance its user base while demonstrating that ads posted on the site are effective and influential.

Twitter has already seen ups and downs for the first weeks of the new year. A report by Kit Doston of SiliconAngle covered the company’s legal battle against VS Technologies, when the latter filed for for patent infringement case on US patent no. 6,408,309. On the other hand, Tweets seemed to be gaining a solid following and tremendous popularity, with Techmeme now utilizing this service for their news-breaking and commentary threads.