Twitter has been in the news continuously for the past several months. Elon Musk acquired the social media company for approximately $44 billion, taking it private in a transaction surrounded by drama and intrigue.

How does Twitter make money, considering it’s free to use? The answer is primarily advertising, like most social media companies.

What Is Twitter?

Twitter is a social media company that was founded in 2006 by Jack Dorsey. He is also the founder of Block, (formerly known as Square). The company went public with an initial public offering (IPO) of stock in 2013. 

Since then, Twitter has grown rapidly. It is one of the most ubiquitous social media platforms thanks to the seamless connectivity it offers users.

How Does Twitter Make Money

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. Advertising revenue growth is double-digit and increased 41% from 2020 to 2021.


The remaining 11% of Twitter’s revenue is from data licensing and services, which is the second way it makes money. In 2021, revenue from this segment was about $571.8 million. This revenue grew more slowly but at a respectable 12.3% between 2020 and 2021.

Data Licensing

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