Tweet returns: Twitter reveals data licencing revenue

US — $47.5m. That’s how much Twitter made last year from selling access to its ‘firehose’ of billions of tweets, with the data then sold on to brand owners, media planners and researchers for further analysis and insight.

Res_4010596_twitter_money

The figures, revealed in the company’s S1 filing with the Securities and Exchange Commission ahead of its upcoming IPO, strongly suggest that Twitter’s data licencing revenue will pass $65m this year. Already, in the first six months of 2013, the company has generated $32.2m in data-related revenue, up 53% on the same period last year.

However, advertising services is clearly Twitter’s real money-maker – and a banker for driving substantial future growth. 2012 ad revenue was $269.4m. H1 2013 revenue was $221.4m.

“We expect data licensing revenue to decrease as a percentage of our total revenue over time,” the company says. In 2012, 27% of revenue came from data licensing. In 2012, that figure was 15%. H1 2013 data revenue is only 13% of total revenue.

Explaining its data licencing business, Twitter said:

“We offer data licenses that allow our data partners to access, search and analyse historical and real-time data on our platform, which data consists of public tweets and their content.

“Our data partners generally purchase licenses to access all or a portion of our data for a fixed period, which is typically two years.

“We recognise data licensing revenue as the licensed data is made available to our data partners.

“In the six months ended June 30, 2013, our top five data partners accounted for approximately 75% of our data licensing revenue, and approximately 10% of total revenue in the period.”

A list of Twitter’s data licensees – at least, those that are part of its Certified Products Program – is available here. Companies/services include social media monitoring and analysis packages like Adobe Social, Attensity, Brandwatch and Crimson Hexagon, as well as data resellers like DataSift, Gnip and Topsy.

We hope you enjoyed this article.
Research Live is published by MRS.

The Market Research Society (MRS) exists to promote and protect the research sector, showcasing how research delivers impact for businesses and government.

Members of MRS enjoy many benefits including tailoured policy guidance, discounts on training and conferences, and access to member-only content.

For example, there's an archive of winning case studies from over a decade of MRS Awards.

Find out more about the benefits of joining MRS here.

0 Comments


Display name

Email

Join the discussion

Newsletter
Stay connected with the latest insights and trends...
Sign Up
Latest From MRS

Our latest training courses

Our new 2025 training programme is now launched as part of the development offered within the MRS Global Insight Academy

See all training

Specialist conferences

Our one-day conferences cover topics including CX and UX, Semiotics, B2B, Finance, AI and Leaders' Forums.

See all conferences

MRS reports on AI

MRS has published a three-part series on how generative AI is impacting the research sector, including synthetic respondents and challenges to adoption.

See the reports

Progress faster...
with MRS 
membership

Mentoring

CPD/recognition

Webinars

Codeline

Discounts