Title: How Twitter Makes Money: advertising and data licensing
Headings: How Twitter Makes Money
How Twitter Makes Money
Advertising and data licensing are the major sources of revenue
Key Takeaways
Twitter's Financials
Twitter's Business Segments
Advertising Services
Data Licensing and Other
Twitter's Recent Developments
How Twitter Reports Diversity & Inclusiveness

Content: Also, the net income in the previous year was partly inflated by a $1.21 billion non-cash benefit from income taxes. 5 ﻿
Twitter's Business Segments
Twitter has a single operating segment and reporting structure. 6 ﻿﻿﻿ However, in its financial reporting the company does separate its revenue into two categories: Advertising Services; and Data Licensing and Other. 4 ﻿
Advertising Services
Advertising services generated $3.2 billion, or about 86%, of Twitter's revenue in 2020. The segment's revenue rose 7.1% compared to 2019. 4 ﻿ Twitter generates most of its advertising revenue by selling promoted products, including promoted tweets, promoted accounts, and promoted trends, to advertisers. The company creates tailored advertising opportunities by using an algorithm to make sure promoted products make it into the right users' timelines, "Who to Follow" lists, or at the top of the list of trending topics for an entire day in a particular country or globally. Advertisers also have the option of paying for in-stream video ads delivered to a targeted audience or sponsoring video content from publishing partners.