A:

Twitter (TWTR) earns 85% or more of its revenue from advertising. In the second quarter of 2017, Twitter posted an advertising revenue of $503 million, which was an 4% decrease of what the social media site brought in during the same time in 2016. Twitter uses promoted tweets, promoted accounts and promoted trends. Twitter sells promoted tweets to marketers, and these then appear in users' Twitter feeds. The company creates tailored advertising opportunities by using an algorithm to make sure promoted tweets make it into the right users' timelines. Promoted accounts are those paid for by an advertiser that Twitter places in targeted users' "Who to Follow" list.

Twitter makes additional money through data licensing. Though advertising revenue decreased year-over-year, Q3 data licensing- and other revenue increased 22%, resulting in a 4% decrease in total revenue. Twitter has named four companies "official data resellers," and these companies have direct access to all tweets. Each company has developed algorithms for data mining that measure consumer response to everything from brands to movies. Keenly invested in Twitter data are television shows that often promote live tweeting as a means to gauge interest and response during broadcasts.

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RELATED TERMS
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