After months of speculation over how and where Twitters finances would come from, the answers might finally be revealing themselves.
When Twitter leaked notes on it’s plans for future Internet domination, to become “the pulse of the planet” many observers were left questioning how exactly this will occur for a site which uses none of the traditional revenue methods, instead relying on investment from third party sources and recently resisting offers from several multinational Internet firms.
However Business Week has reported that Twitter has in fact made made a comfortable profit after a year in which the company made search deals with two of the Internets biggest powers; Google and Microsoft, making their tweets search-able for $15million and $10million respectively. The deals are said to be multi year deals which will see a new income stream for the young Internet company which is already making news headlines and allowing people to rethink how information is spread across the web.
Although Twitters financial account details are not open to public scrutiny, combined with a streamlining of their operational costs; it can be estimated that Twitter is now finally making money under its own steam.
However the site will have to be cautious with further attempts to generate revenue, recent efforts to alter the workings of the website, such as the addition of a ‘retweet’ button have been met with resistance from users, raising questions over how much input the administration of the site should have over it’s running which may affect proposed plans which are yet to be implemented.
These search deals are also important for both Google and its rival Bing, both services had attempted previously to incorporate real time search options and micro-blogging into their own services, and Google had also attempted to put an offer on the table for a take over of the young site, but these fell through after Twitter refused to sell.
Real time search holds huge benefits over traditional search, as social media has grown it’s become tough for more traditional news agencies to stay ahead of the crowd. Real time updates can allow search engines to keep stories fresh and have as up to date information as possible.
One of the draw backs to this, however is the lack of verification and accuracy that comes with user generated news. Phenomena such as the reported death of Jeff Goldblum on Social Networking sites which was quickly picked up across the web, before being verified as a hoax by any of the major news networks.
Even with these drawbacks, the benefits of a real time search integration with the worlds biggest search engine, Google present real and tangible benefits for Twitter, Google, Bing and indeed the public who can get news and information faster, and in what Google considers to be a more natural and organic form of information flow.