In 2021, advertising comprised about 89% of the firm’s revenue at about $4.5 billion.
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.
The Twitter Blue service has been widely discussed in the news because Elon Musk wants to charge $7.99 per month for verification services.
One reason Twitter struggles to make money is that the company competes with much larger companies for ad dollars.
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.
Advertising will always remain important, but Twitter is exploring pay-per-view capabilities where users post videos behind a paywall.