Twitter Earned $5 Billion Last Year – Here’s How

Despite Twitter’s large user base, it has struggled to make money consistently over the years. The firm makes money primarily in two ways: advertising and data licensing.

The primary way Twitter makes money is through advertising. In 2021, advertising comprised about 89% of the firm’s revenue at about $4.5 billion.


The company’s proprietary algorithms create targeted ads. Advertising formats include Promoted Ads, Twitter Amplify, Follower Ads, and Twitter Takeover.

Ads are always tagged as promoted in a user’s feed. Before Elon Musk purchased Twitter, the cost varied depending on the type of advertisement.

The remaining 11% of Twitter’s revenue is from data licensing and services, which is the second way it makes money.

Data Licensing

This revenue stream comes from subscriptions to other businesses and software developers. The data provides them with historical and real-time user trends and demographics.

Users buy and sell advertising inventory, and MoPub matches buyers with sellers. However, Twitter sold this business for roughly $1.1 billion in cash at the start of 2022.


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