Many social media users and experts often wonder about how does Twitter make money? Why wouldn’t they? It is one of the most valid questions in today’s date. Mainly because Twitter has its revenue in millions, a whopping US$3.72 billion as of 2020. Even though Twitter makes one of the biggest platforms and is free to join. 

how does Twitter make money

So, how do they even make money when to most people it seems that the platform works for free. Well, to your surprise Twitter sources its revenue needs through on-site advertising and data licensing. 

Want more than the above-mentioned details on how does Twitter make money? Stay hooked to our article throughout and learn facts unlike ever before.

What do you mean by on-site advertising on Twitter?

On-site advertising refers to that form of advertising in which banner advertisements are displayed on Twitter. Internationally, on-site advertising models are one of the most commonly used revenue models, although, the on-site revenue model doesn’t generate the major source of revenue. 

In case Twitter on-site advertising, the advertisers will be paying Twitter for placing their advertisements. Banner advertisements are usually displayed by Twitter as per the advertiser payee. Then, Twitter is monetized by the growing number of advertisements that the brands place. 

How does Twitter make money with on-site advertising?

Twitter makes a major portion of its revenue through selling advertisements. In the first quarter of 2021, Twitter’s major portion of revenue came from advertising followed by data licensing. Twitter’s revenue alone from advertisements came out to be 2,993.39 million US dollars. 

As more and more people are joining this phenomenal social media application, advertisements on printed and television mediums are losing their essential value. Nowadays, most brands and influencers look forward to social media on-site advertising, especially on Twitter. 

how does Twitter make money

Twitter understands the void of brands reaching their target customers faster better than everyone else. That is mainly why Twitter has taken advantage of its growing popularity and usage for its profit. 

From promotional tweets, promotional accounts to promotional trends, Twitter on-site advertising has been helping the social media app mint money in this tech-savvy world. 

Some prominent Twitter on-site advertising features include:

  • Promotional Tweets: Brands usually promote themselves via tweets that show up on their target Twitter user’s timelines.
  • Promotional Accounts: Most of the time Twitter also suggests its users with few Twitter accounts. These account suggestions are mainly based on their interests.
  • Promotional Trends: Twitter trends are also extremely beneficial for on-site advertising. Twitter promotes brands and influencers through specific words and hashtags. These specific words and hashtags are constantly repeated to create a lasting impact on target users.

What do you mean by data licensing on Twitter?

Data licensing is nothing but a legal instrument. It specifies some standard set of terms as well as conditions. These terms and conditions are specifically related to the re-use and sharing of any research data. 

Every data repository has its very own specific licensing options. While some repositories emphasize using a certain data license in case you feel like depositing data, others don’t.

how does Twitter make money

Data licensing in the case of Twitter makes its second-greatest source of revenue. Brands and influencers can choose to dive deeper into the ocean of consumer trends. They can minutely analyze these trends through buying insights from Twitter. 

Twitter sells all the insights on various brands as well as influencers to those brands and influencers who are in search of them. This can tremendously help all the brands and influencers to form competent strategies well in time to attract target users faster. 

Most Twitter users keep their accounts public so their tweets can reach a global audience. Having tweets set with public view permission gives Twitter users access to relevant data whenever necessary.

How does Twitter make money with data licensing?

Twitter’s second major source of revenue after on-site advertising is data licensing. It does so by licensing out public data to millions of its users every single minute. Giant, as well as small companies, can readily access this licensed data by purchasing it. They can further use this real-time and historical data to thoroughly analyze consumer trends. And ultimately frame the best marketing strategies to gain more followers.

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