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This statistic highlights Twitter’s Revenue by Segment from 2012 onwards, split between Advertising services, and Data licensing & others.
Twitter’s Revenue by Segment
|Segment||Q1 2021||Q1 2020||YoY Growth||Revenue share in Q1 2021|
|Data licensing and other||$137.18||$125.45||9%||13%|
(All figures in millions, except percentages)
Twitter witnessed a 28% year-over-year growth with revenue amounting to $1,036.02 million in Q1 2021 from $807.64 million in Q1 2020. Twitter’s total revenue is split between two categories: Advertising Services; and Data Licensing and Other.
Twitter generated around 87% of total revenue from advertising services which include selling promoted tweets, promoted accounts, and promoted trends to advertisers.
Twitter also generates advertising revenue by charging advertisers for in-stream video ads delivered to a targeted audience and for sponsoring video content from publishing partners. The majority of the Promoted products sold to the advertisers are placed on Twitter, however, Twitter also generates revenue by placing a small portion of the advertising products on third-party publishers’ websites, applications, and other offerings.
In Q1 2021, Twitter generated $898.84 million by offering advertising services. Revenue from this segment has grown by 32% year-over-year from $682.19 million in Q1 2020. This increase in Advertising revenue indicates an increase in advertiser demand driven by a larger audience, better measurement and targeting, strong growth in ad impressions, increased demand for ads, product feature improvements, and improved ad formats.
Data Licensing and Other.
Twitter generates revenue by offering data products and data licenses to companies and developers who get to access, search, and use historical as well as real-time data on the platform. Licenses are purchased to access all or a portion of data for a fixed period. Revenue from data licensing is recognized as and when the data is been used.
Apart from data licensing, Twitter also operates mobile advertising exchange services through MoPub exchange and collects service fees from transactions completed on the exchange. The mobile advertising exchange service acts as a link between the buyer and seller to purchase and sell advertising inventory, thus creating a match between buyers and sellers.
In Q1 2021, Twitter generated $137.18 million that is 13% of total revenue. Revenue from this segment grew by 9% year-over-year from $125.45 million in Q1 2020. The increase was due to expanded partnerships in Developer and Enterprise Solutions (DES)
Twitter, Inc. is an American-based company established in 2006 by Noah Glass, Evan Williams, Jack Dorsey, and Biz Stone. Its headquarters is in San Francisco in California. Twitter, Inc. completed its initial public offering in 2013, and its common stocks are listed on the New York Stock Exchange under the trading symbol “TWTR”.
Twitter is a microblogging and social networking platform which allows users to post and interact via messages called “tweets”. The platform is used by individuals as well as businesses to publish their thoughts, share content, interact, and read breaking news. An unregistered user can only read the tweets whereas a registered user can post tweets of up to 280 characters and up to 2,400 times per day and can also like and retweet tweets.
Some of the companies acquired by Twitter are Gnip, Magic Pony Technology, MoPub, Periscope, TapCommerce, TellApart, and TweetDeck. Some of the major competitors of Twitter are Facebook, Pinterest, WeChat, TikTok, YouTube, Google, WhatsApp, Snap, Instagram, and QQ.
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