{"id":13665,"date":"2022-07-15T10:59:54","date_gmt":"2022-07-15T10:59:54","guid":{"rendered":"https:\/\/zeru.com\/blog\/?p=13665"},"modified":"2022-07-15T10:59:54","modified_gmt":"2022-07-15T10:59:54","slug":"how-does-twitter-make-money-advertising","status":"publish","type":"post","link":"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising","title":{"rendered":"How Does Twitter Make Money Advertising?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_43 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1e27e50333f\" class=\"cssicon\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><label for=\"ez-toc-cssicon-toggle-item-6a1e27e50333f\"  class=\"cssiconcheckbox\">1<\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1e27e50333f\" ><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\/#How_Does_Twitter_Make_Money_Advertising\" title=\"How Does Twitter Make Money Advertising?\">How Does Twitter Make Money Advertising?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\/#Advertising\" title=\"Advertising\">Advertising<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\/#Data_licensing\" title=\"Data licensing\">Data licensing<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\/#Promotional_Twitter_accounts\" title=\"Promotional Twitter accounts\">Promotional Twitter accounts<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\/#Musks_plan_to_charge_a_small_monthly_fee\" title=\"Musk&#8217;s plan to charge a small monthly fee\">Musk&#8217;s plan to charge a small monthly fee<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"How_Does_Twitter_Make_Money_Advertising\"><\/span>How Does Twitter Make Money Advertising?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" align=\"right\" alt=\"how does twitter make money\" style=\"width:auto; max-width:31% height:auto; max-height:360px; margin:0px 10px;\" src=\"https:\/\/i.imgur.com\/plSx5Pp.jpg\">  <\/p>\n<p>The main source of revenue for Twitter is advertising. The company makes over $3 billion a year from advertising, and the data licensing portion accounts for 13.5% of revenues. Twitter&#8217;s most prominent competitors include Facebook, LinkedIn, Instagram, Snapchat, Quora, Reddit, and WhatsApp. In addition, it earns money from promotional Twitter accounts. Musk plans to charge a small monthly fee to users to access Twitter&#8217;s data.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advertising\"><\/span>Advertising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>How Twitter makes money advertising? The question of how to advertise on Twitter is a perennial debate. The issue is that the network&#8217;s monetizable daily active users (DAUs) are not as high as they are on Facebook and Instagram, and the low click-through rate makes it hard to generate a profit. Besides being ineffective for driving sales, Twitter&#8217;s ads also do not attract many followers. Consequently, most companies are reluctant to place their ads on the platform.<\/p>\n<p>As of the third quarter of this year, more than 86% of Twitter&#8217;s revenue is generated by advertising. Twitter&#8217;s revenue is derived from advertising and data licensing. The company recently suspended the account of former U.S. president Donald Trump. It hopes to turn this around. While it&#8217;s not profitable, it&#8217;s worth noting that the company has lost several times and is attempting to turn things around. In the first quarter of 2020, Twitter will have a negative EPS of $1.23 billion, which is still an impressive figure.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Data_licensing\"><\/span>Data licensing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In recent years, Twitter has seen a rise in its revenue from data licensing. The revenue from data licensing has increased 26% year-over-year, to $85 million, and made up 15 per cent of Twitter&#8217;s total revenue. Data licensing revenue is also profitable, with Twitter&#8217;s CFO Anthony Noto estimating that $1 of data revenue generates $3 to $4 in advertising revenue. So, in essence, Twitter is recouping most of its costs through this revenue stream, allowing it to grow at a much higher rate than it would have through advertising.<\/p>\n<p>While advertising is the primary source of revenue for Twitter, the company is also working to make more money from data licensing. Companies that want to analyze consumer trends can license Twitter data to other businesses. The company can charge as little as $10 per month for data licenses. Moreover, advertisers can also license Twitter data for other businesses, which helps them to understand what consumers want and what they are looking for. The revenue from data licensing is expected to grow as the company continues to gain market share, which should continue to grow.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Promotional_Twitter_accounts\"><\/span>Promotional Twitter accounts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the best ways to monetize your Twitter account is to create your own products and services and sell them directly to your followers. This way, you can generate recurring monthly income. Another way to monetize your account is to set up pre-order promotions of products that you are selling, such as a t-shirt with a limited quantity of prints. This way, you can gauge how well your product or service will be received.<\/p>\n<p>The Twitter website lists trending topics, which may not include hashtags. When a user clicks on one of these posts, the account gets promoted, earning the account owner money. For example, the NFL pays to promote the #SuperBowl during the big game. Twitter earns money by licensing this publicly available data. This is known as the &#8220;firehose&#8221; and is an excellent source of traffic for a company.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Musks_plan_to_charge_a_small_monthly_fee\"><\/span>Musk&#8217;s plan to charge a small monthly fee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Elon Musk, the CEO of Tesla Motors, has hinted at charging a small monthly fee to access the social network. Twitter users have not been asking to pay for its services in years, and Musk&#8217;s bid to acquire the company was based on his ability to turn it around. Although he may charge users a fee, he wants Twitter to remain free as long as possible.<\/p>\n<p>While Musk has made public his plans to charge a monthly fee to access Twitter, he has yet to explain how he intends to make this possible. While the idea of charging users a small fee for using Twitter has been discussed before, it&#8217;s unclear how Twitter can afford it given the lack of revenue it is currently generating. Musk also said that he plans to cut the salaries of board members at Twitter, saving the company an estimated $3 million a year. Musk has also expressed interest in adding additional features, including the ability to customize the user&#8217;s interface and embed their tweets.<\/p>\n<p> <iframe width=\"376\" frameborder=\"0\" height=\"210\" src=\"https:\/\/www.youtube.com\/embed\/t9Si-UEczvM\" allowfullscreen=\"true\" style=\"margin:0px auto; display: block;\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Does Twitter Make Money Advertising? The main source of revenue for Twitter is advertising. The company makes over $3 billion a year from advertising, and the data licensing portion accounts for 13.5% of revenues. Twitter&#8217;s most prominent competitors include Facebook, LinkedIn, Instagram, Snapchat, Quora, Reddit, and WhatsApp. In addition, it earns money from promotional [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":16456,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.7 (Yoast SEO v21.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Does Twitter Make Money Advertising? - Zeru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Does Twitter Make Money Advertising?\" \/>\n<meta property=\"og:description\" content=\"How Does Twitter Make Money Advertising? The main source of revenue for Twitter is advertising. The company makes over $3 billion a year from advertising, and the data licensing portion accounts for 13.5% of revenues. Twitter&#8217;s most prominent competitors include Facebook, LinkedIn, Instagram, Snapchat, Quora, Reddit, and WhatsApp. In addition, it earns money from promotional [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\" \/>\n<meta property=\"og:site_name\" content=\"Zeru\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-15T10:59:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zeru.com\/blog\/wp-content\/uploads\/How-Does-Twitter-Make-Money-Advertising_13665.png\" \/>\n\t<meta property=\"og:image:width\" content=\"4280\" \/>\n\t<meta property=\"og:image:height\" content=\"3228\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Lizzie Yates\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lizzie Yates\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\",\"url\":\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\",\"name\":\"How Does Twitter Make Money Advertising? - Zeru\",\"isPartOf\":{\"@id\":\"https:\/\/zeru.com\/blog\/#website\"},\"datePublished\":\"2022-07-15T10:59:54+00:00\",\"dateModified\":\"2022-07-15T10:59:54+00:00\",\"author\":{\"@id\":\"https:\/\/zeru.com\/blog\/#\/schema\/person\/61005d9ec00b94bc50fbaf11b78aa55e\"},\"breadcrumb\":{\"@id\":\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/zeru.com\/blog\/how-does-twitter-make-money-advertising#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/zeru.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Does Twitter Make Money Advertising?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/zeru.com\/blog\/#website\",\"url\":\"https:\/\/zeru.com\/blog\/\",\"name\":\"Zeru\",\"description\":\"Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/zeru.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/zeru.com\/blog\/#\/schema\/person\/61005d9ec00b94bc50fbaf11b78aa55e\",\"name\":\"Lizzie Yates\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/zeru.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/zeru.com\/blog\/wp-content\/uploads\/19-150x150.jpg\",\"contentUrl\":\"https:\/\/zeru.com\/blog\/wp-content\/uploads\/19-150x150.jpg\",\"caption\":\"Lizzie Yates\"},\"description\":\"A content marketing strategist with the Zeru team for a little over 5 years, Lizzie Yates specializes in everything digital media with a particular focus on social media and technology. 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