You wake up in the morning, turn on your net connection and a blast of notifications comes at you. Your favourite actors had engaged in a Tweet war. That is a daily occurrence if you own an account. Now, what is Twitter? Many of us would know it as a social media site. But it is also a microblogging platform. From Barack Obama to Narendra Modi and from Taylor swift to Amitabh Bachchan, it is very famous among public figures. According to the google play store, at present, the app acquires more than half a billion users. So, where does come from?
Services and Products Twitter Offers
Inc. owns a lot of companies. They work on improving and maintaining every aspect of. They are Brizzly, Easy Chirp, Favstar, Gwibber, Gnip, flick, INQ, Hotot, HootSuite, Twittbot, TwittDeck, TwitPic, fall, rific.
- Offers you a line of services for daily use. Some of them are mentioned down below.
- Create a personal and public account.
- Follow other accounts and connect.
- Sharing events and thoughts through 280 text character tweets.
- Upload up to 4 media attachments.
- Microblogging.
- Search engine for browsing Twitters.
- Create separate groups for people, friend and family.
- Link up website, accounts and advertisements to a tweet
- Live Streaming
- Can twitt up to 2400 times a day.
How Do Twitter Make Money?
So, we know the majority of people use for news browsing and entertainment purposes. So, the big question here is, how are they making over $3 billion in revenue every year? And how did they raise their net worth to 25 Billion? The mystery stands here. Let’s get into how earns its revenue.
Well’s primary source of revenue is ADVERTISEMENTS. That is right, ladies and gentlemen. Like every other social media site, makes money off advertisements sponsored by brands, websites, companies, and professional profiles. With 500million average tweets every day and more than 300million monthly active users is one of the most convenient platforms for advertising and reaching out to people. So, millions of businesses pay to portrait advertisements. They pay for how many times it has been retweeted and how many people it could reach out to.
gets paid from every advertisement portrayed. How much? That depends on the size and popularity of the business. Advertises can be represented through commercial accounts and freely. shuffles the ads on the trending board and among hashtags, also, in between the posts. The algorithm sets off as showing relevant ads to relevant regions and specific groups of people who are more likely to pursue the advertised product or website. Their comprehensive and precise service attracts businesses to invest.
Advertising brings more than 85% of revenue. But that is not the only source of earning for them. Another way makes its income is “DATA LICENSING.” Yes, you read it right. is one of the few social media sites that legally trade data with other companies. Data licensing is a trade of public data which companies use to separate and categorize the market for their product. A fair chunk of revenue comes from data licensing.
Well, that is not it. also gets revenue from promoting trends, hashtags, professional accounts, commercial labels and other business profiles. Even though it is a minimal amount of their earnings, it counts as a valid source of earning.
‘s revenue model stands to be a multi-way revenue model. Revenue models for social media sites keep changing with time because of the interchangeable and diverse market behaviour. But somehow managed to establish its multi-way revenue system and they are still going strong. It encourages its users as well to post visual ads and make a paid partnership of products as well. Thus, whether registered or not makes money from every view and every account they provide service for by showcasing visual advertisement and data licensing. So, it is safe to say they follow a simple and effective revenue model for their company.
Target Market of Twitter
It has a different target market than most of its competitors because it is vastly known for delivering trending social news and creating active (public) communication among accounts. So, focuses on the more EDUCATED group of people.
Let’s look at some facts that would give you a clear idea of ‘s target market
- 32% of users acquire college-level education. According to the Pew Analysis, 42% of them have a bachelor’s degree, at least.
- 80% of the users are marked millennials
- 71% of users use for daily news updates.
- Around 93% of users aim for branding and providing customer service.
- 38% of users are in the age range of 18-29.
So, the current users can be described as young, educated, more career involved (companies professionals) and needless to say, affluent Millennials. They try to keep their services to be sophisticated and recent news updated to catch and keep the attention of this specific group of people.
Competitors of Twitter
has a great list of competitors. Being both a social media and a microblogging platform, its identified competitors are of mixed categories. Here are five of its major competitors:
- Facebook.
- Snap Inc.
- YouTube
Bottom Line
It all sums up to this, makes money from advertising, promoting and data licensing. Although it ceases to function as the top site in its field, it still stands strong as a microblogging, media sharing, and social media platform. It earns more than $3 Billion in revenue every year and plans to give fair competition to its market competitors. So that is precisely how makes its money. With ups and downs, stands strong with its multi-way revenue model.
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This is Tabassum Nusrat Soti and she is a content writer from Bangladesh. She has been a professional writer for over 5 years now. and she has been working with The Strategy Watch for over 3 years now.
Writing is Tabassum’s passion. Let it be SEO-efficient blog posts, analytical articles, reviews, news articles, or ghostwriting stories, she has worked and thrived in all sorts of writing. She has always had a way with words and intends to write for a prolonged unforeseeable future.
Currently, she is doing her honors (BBA) at the University of Dhaka. Majoring in the background of Tourism & Hospitality Management, she is a skilled and proactive third-year student. Her business studies background helps her write business analytic articles for The Strategy Watch. She will always keep learning and achieving new levels of content writing because of her passion for writing and creating words.