How Twitter make money?

Answer:

Twitter (the market) is a social media company which provides the network connecting users with people, information, ideas, opinions and news. The company’s services include live comments, direct connections and live communication via mobile devices and the Internet. The company can also be used as a marketing tool for businesses.

How Twitter Makes Money

Twitter earns 86% or more of their income from advertising. In the 2017 financial year, Twitter wrote the advertising revenue of 2.1 billion dollars, which is six percent lower that the social media site brought in during the same time in 2016.

Twitter uses promoted tweets, promoted accounts and promoted trends. Twitter also sells promoted tweets to marketers, and then they appear in users ‘ Twitter feeds. The company creates tailored advertising opportunities by using an algorithm to ensure that promoted tweets make it in terms of user rights. Promoted accounts are those who are paid by the advertiser that Twitter is target users “who to follow” list.

Twitter makes more money through licensing of data. Although advertising revenues declined year on year, the 2017 data licensing and other revenue increased 18 percent, resulting in a three percent decrease in total revenue. Twitter has named four companies the “official Resellers” data, and these companies have direct access to all tweets. Each company has developed algorithms for data mining, which measure the reaction of consumers on all brands in the movies. TV shows and brands of digital media has invested heavily in the Twitter data, often promoted tweet as a means to assess the interest and response during the reportage or transfer.

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