How Does Twitter Make Money?

RADICALFIRE.COM

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Twitter has been striving to create a profit for its shareholders by leveraging its 206 million active daily users.

But how does Twitter make money, considering it’s free to use? The answer is primarily advertising, like most social  media companies.

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1. Advertising

In 2021, advertising comprised about 89% of the firm’s revenue at about $4.5 billion.

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2. Data Licensing

The remaining 11% of Twitter’s revenue is from data licensing and services, which is the second way it makes money. In 2021, revenue from this segment was about $571.8 million.

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3. Other

The Twitter Blue service has been widely discussed in the news because Elon Musk wants to charge $7.99 per month for verification services.

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Main Competitors  Are Bigger

One reason Twitter struggles to make money is that the company competes with much larger companies for ad dollars.

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Twitter struggles to make money because the business model is relatively stagnant. The company has focused on advertising sales as its core source of revenue.

The Business Model  Is Stagnant

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Advertising will always remain important, but Twitter is exploring pay-per-view capabilities where users post videos behind a paywall.

How Will Twitter Make Money In The Future

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