Saying that social media platforms have changed the ways of doing business. Whether you run a clothing brand or corporate, every aspect of the business is now on social media platforms. And Twitter has no exception for this. With more than 450 million monthly active users, It is one of the largest social media platforms that is evolving the ways to do business around the globe. The platform is growing every day at an accelerated speed. It allows every kind of business to market their service, products, and brands.
Furthermore, Twitter has become a medium where you can launch your brand and can establish your business efficiently with the help of appropriate likes, shares, tweets, and retweets, and you can get successful on that platform. But do you know how does Twitter make money? Well, there are many myths about this matter. That is why we will discuss this matter today.
Like other social media platforms, Twitter allows users to run ads to get more audience for their businesses or tweets. In addition, with the help of selling licensed data, Twitter also earns a chunk of money every month. If you are also wondering what is Twitter’s business model? How much does Twitter make money? And with all the related questions, you are in the right place. In this blog, we will describe all the ways in which Twitter earns money. So, let us explore this matter to make everything better and more resilient to understand.
How Does Twitter Make Money?
Despite the reality of how large the Twitter platform is in user base, it is complicated to make money for the platform as of 2021. Now, Twitter is making money primarily in two ways: the first and the most significant percentage of revenue generated by Twitter advertising. The second stream of Twitter earnings is through data licensing. Don’t get upset if you are confused about how Twitter can earn from all these three income streams. In this section, we will discuss these three ways of Twitter earning. Whether you are running a brand or own a business, Twitter has a versatile module of its policies of earnings implemented on all users without any difference.
How Much Does Twitter Earn Through Advertising?
As we spoke earlier, Twitter has become a sensation for many giant corporates and business models to promote or market their products, services, or brands. In this regard, Twitter charges them to advertise their products or services to others’ profiles. With the help of advertisements, Twitter earns more than 4.5 billion dollars when writing this statement. It is a huge percentage of revenue that Twitter collected with the help of the advertisement section. There is 86% of the revenue generated with this business model. That is why Twitter is upgrading its daily advertisement policies to make them more effective and productive.
The mechanism of this advertising business model on Twitter is quite simple to understand. Brands or businesses pay Twitter platform to show their products or services on the top profiles so that they can get more leads and make more money for their business or brands. The cost of each advertisement action varies from $0.5 to $2 depending on where the ad is targeted.
How Data Licensing Generate Money for Twitter?
Twitter is the largest social media platform used worldwide by billions of users. The potential of this platform is as huge as its users count. There are 500 million active users that tweet on Twitter daily. You can imagine how versatile data can be collected from that platform. This is the opportunity that Twitter uses to earn money. The second main earning stream of Twitter is data licensing. In this business model, the Twitter platform examines the behavior of users towards a brand, product, or service. It provides that data to different companies to make marketing strategies and understand a user’s behaviors with their product.
Companies or organizations purchase massive data to analyze user trends about a specific product, service, or brand. In addition, it also gives them the insight to make their product strategy and helps them shape their services according to public demands.
Other Sources of Twitter Income
There are also other Twitter income streams like data licensing and advertisement. There is a huge revenue return of user fees of MoPub. It is a mobile ad exchange where users can sell and purchase advertisement inventory. MoPub automatically matches buyers with sellers. At the beginning of 2022, Twitter sold that business model in 1.1 billion dollars in cash to AppLovin, a famous game maker and marketer. Moreover, at the beginning of 2023, Elon Musk implemented the Blue service on the platform. With this service, the users will get a blue tick that tells that they are a celebrity or are verified by the platform. The Blue service costs 7 dollars per month, and you can imagine how massive revenue will generate with this action.
Frequently Asked Questions
In 2021, with the help of advertisement and data licensing, Twitter generated 5 billion dollars.
Till 2023 October, Twitter earns 44 billion US dollars.
At the end of our discussion on how Twitter makes money, we came to the conclusion that Twitter is a super giant platform that offers a huge potential for not just earning money but also getting paid on that platform. With the help of this blog, you can understand how big is the Twitter universe and how many people are making their advertising needs, and data sourcing needs to be fulfilled. Many users are enabling them to generate business leads and get more revenue. So, if you are wondering about the business model of Twitter, read that blog carefully, as it contains every bit of helpful information about this matter.