{"id":264931,"date":"2018-06-19T12:57:57","date_gmt":"2018-06-19T10:57:57","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=264931"},"modified":"2018-06-19T12:59:53","modified_gmt":"2018-06-19T10:59:53","slug":"how-twitter-makes-its-money","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/it-services\/264931-how-twitter-makes-its-money.html","title":{"rendered":"How Twitter makes its money"},"content":{"rendered":"<p>About half of the revenue Twitter earns from advertising comes from video, Twitter\u2019s head of global resellers Barry Collins told MyBroadband.<\/p>\n<p>Collins said the vast majority of Twitter\u2019s revenue, around 90%, comes from advertising. Its data business makes up the remaining 10%.<\/p>\n<p>Asked how the scandal surrounding Facebook and Cambridge Analytica affected its data business, Collins said Twitter is a very different platform compared to its competitors.<\/p>\n<p>\u201cMost of the data we sell is public already,\u201d he said, adding that the company\u2019s data business essentially provides information for brand sentiment analysis to a company which specialises in the field.<\/p>\n<p>Collins added that he is not aware of any initiatives at Twitter to look into alternative revenue streams, or the use of cryptocurrencies to monetise the platform.<\/p>\n<p>\u201c[Advertising] is the very core of how we monetise the platform,\u201d he said.<\/p>\n<p>With video making up half of the advertising revue,\u00a0Collins said they are steadily developing their offering.<\/p>\n<p>Twitter currently has deals with publishers for pre-roll advertisements in video streams, and Collins said they work carefully to ensure the brand safety of the content and ads.<\/p>\n<p>\u201cBrand safety is critical,\u201d he said.<\/p>\n<h3 class=\"my-4\">Becoming profitable<\/h3>\n<p>Collins&#8217; statements follow Twitter posting its first-ever profit in the fourth quarter of 2017. The company was also profitable in Q1 2018, earning $61 million.<\/p>\n<p>Twitter achieved this profitability thanks to the cutting of costs, <strong><a href=\"https:\/\/www.recode.net\/2018\/2\/8\/16991140\/twitter-profit-q4-2018-earnings-revenue-cuts\" target=\"_blank\" rel=\"noopener\">reported<\/a><\/strong> Recode.<\/p>\n<p>It cut costs in three major areas:<\/p>\n<ol>\n<li>Twitter spent 26% less on stock-based compensation in Q4 2017, amounting to just over $102 million.<\/li>\n<li>It decreased research and development spend by 34% to $134 million.<\/li>\n<li>Sales and marketing expenditure was cut by 30% to under $164 million<\/li>\n<\/ol>\n<p>Recode also <strong><a href=\"https:\/\/www.recode.net\/2018\/6\/13\/17455464\/twitter-jack-dorsey-stock-growth-explained-profitability\" target=\"_blank\" rel=\"noopener\">noted<\/a><\/strong> that while Q1 revenue was up 21% year-on-year, it only represented a 12% increase compared to the revenue it earned two years ago.<\/p>\n<p>Facebook\u2019s revenue, by comparison, saw an increase of 122% over the same two-year period.<\/p>\n<p>Twitter said its recent year-on-year increase in ad revenues was thanks to growth in video advertising, and better value for advertisers.<\/p>\n<p>\u201cRevenue growth was driven by continued strong ad engagement growth, improved revenue features, improved return on investment, and better sales execution,\u201d said Twitter.<\/p>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/it-services\/263975-how-twitter-will-tackle-bad-actors-like-bell-pottinger-and-the-guptas.html\">How Twitter will tackle bad actors like Bell Pottinger and the Guptas<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>About half of the revenue Twitter earns from advertising comes from video.<\/p>\n","protected":false},"author":15,"featured_media":144773,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[49317],"tags":[51701,35,405],"class_list":["post-264931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-barry-collins","tag-headline","tag-twitter"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/264931"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=264931"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/264931\/revisions"}],"predecessor-version":[{"id":265081,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/264931\/revisions\/265081"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/144773"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=264931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=264931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=264931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}