How does Twitter make money
Twitter has surely captured the social networking business and is a popular source of news and networking. The major share of Twitter’s revenue comes from advertising on the website. Almost 85% of the revenue is generated from ad sales and ‘promoted tweets’. The remaining revenue is generated through licensing its data. The maximum number of users access Twitter from their mobile phones and thus most of Twitter’s revenue comes from mobile devices.
Why do advertisers choose Twitter?
Advertisers like Twitter simply because of the fact that they can target specific users or groups with relevant advertisements. Although, Twitter does not have as much user base as Facebook, however, people who are on Twitter are more frequent users that those on Facebook. Moreover, Twitter’s users are quite active and thus are a preferable choice for companies wanting to advertise.
Revenue through Promoted tweets
In order to promote their sales, advertisers pay to have a short message show up in user’s stream of Twitter messages. With the help of keyword targeting, advertisers can reach specific users with their specific promotions. Although not much user demographic information is available on Twitter as compared to Facebook, yet Twitters gets paid well when any user engages with the promoted tweets and thus makes a lot of money.
Revenue through Promoted trends
Twitter lists about the topics which are most popular on its platform and this trend varies from location to location. To catch up with these trends on various topics, an advertiser can pay to have a topic of their choice and get it listed. The cost of these promoted trends is quite high and thus is a good source of revenue for Twitter.
Nevertheless, Twitter also generates some revenue from selling data based on various sources. Unlike Facebook, Twitter has gradually become a popular source of news and most of the high profile celebrities are clinched to it on a regular basis.