Twitter’s Business Model

Twitter is a social networking site where users are able to directly interact with one another, in the form of tweets. If a user is registered, they may like and retweet tweets they have seen on their feed, however, if they are unregistered the user is only able to view tweets.

Twitter is a great way to make connections with an online community, made possible with the ability to utilise the ‘direct message’ feature to communicate with family and friends wanting to discuss areas of common interest.

The benchmark to assess their business value comes in the form of analysing their consumer base. Twitter currently has 330 Million active users, with 145 Million users logging on daily to interact with the service.

As a result, the ability to monetise Twitter’s assets can be very successful. Revenue made from advertisement sales is a great way to specifically target consumers, offering service/products that may enhance the user’s experience.