Summary
This analysis examines the potential results from Twitter's relationship with Google and Microsoft.
Specifically, the analysis addresses:
- Is Twitter smart from an investor perspective?
- Is this good for Internet usability and efficiency?
- Are there any philosophical implications?
- How will this further impact the search and social media landscape?
Analysis
Do you want to see realtime Twitter comments as part of the feedback in your search results page on Bing.com and/or Google.com? This is the question that the search community is asking.
Announced earlier this week, Twitter is in conversations with Microsoft and Google to power realtime search results to their respective engines Bing.com and Google.com. There are a number of interesting dynamics at play for search and social media in this potential partnership. On the surface, the overall sentiment toward the conversations are positive and the internet community is excited at the prospect of getting more information in one centralized place. However, there are some commentators that feel a twitter feed would further complicate already jammed backed search results pages.
The subject become more interesting when we force ourselves beneath the surface and look from an investor, usability and philosophical frame of reference.
The investor in me screams, "Smart move Twitter!". Twitter is at a critical point where it must begin to monetize the fabulous value it's created. It's current visibility and recent funding round of $100 Million USD has called Twitter into the investor spotlight. Simply put, Twitter has to start making money. A business model that allows Twitter's first revenue stream to come direct from two industry leaders, Microsoft and Google, is a win in multiple ways.
- Ground floor strategic partnerships with both firms will naturally lend it's self to an environment of innovation and support.
- Managing a large revenue stream with only two partners, versus perhaps thousands of direct customers, is operationally efficient and an ideal place to start in identifying new revenue streams. It allows Twitter to stay focused on their core business while leveraging already existing best of industry search engines showcasing the power of efficiency in "outsourcing".
- The confirmed deal will provide anchor revenue, a stable and long-term stream, that can quickly be positioned to help other revenue streams establish and grow.
Regardless of whether Twitter, Google and Microsoft settle on an upfront payment or revenue share, with a nonexclusive deal on the table, Twitter has truly positioned themselves to gain without limitation. For example, if Twitter decides to launch advertising opportunities or enterprise services, it will immediately benefit from the direct traffic and branding of Microsoft and Google. Not too bad!
When imagined from a usability and efficiency standpoint, it seems to make a lot of sense to offer the following type of results in a basic search:
- Natural SEO* Results from "historic" articles
- SEM* Results and Ads
- Realtime Information
This is truly a full 360 degree perspective on a topic. In the first bullet above, I'm using the word "historic" to refer to anything that is older than realtime. Simply put, if we can see what people said recently (SEO), what people are saying right now (Twitter Feed), and what companies want to tell us (SEM), all in one place at one time, we are improving the current efficiency of realtime information travel and as a result, decision making times will decrease. The more information we can get on one screen, the happier we are as Internet users.
From a philosophical perspective, I fully support the idea providing a realtime informational flow directly next to static search results and paid advertisements. The most amazing aspect of social media and user generated content is that the conversations are generally very authentic and natural resulting in a higher level of accuracy. If this is true, streaming realtime twitter comments will tell a user how accurate, or at least how consistent, the information is that's appearing in their SEO & SEM results. The level of accountability that is found in user generated content is sure to create a "check and balance" impact on traditional SEO & SEM.
We would be remiss if we did not pause briefly to discuss what this deal would do the social media landscape. Twitter is only one of many social sites that provides live, realtime status and/or microblogging updates. Who will begin similar discussions? It will clearly put pressure directly on Facebook. If the deals go through, the immediate next industry questions becomes, "How will Facebook integrate their business with top search engines?"
In summary, the specific outcome of the Twitter, Google and Microsoft discussion will set the stage for who will take the first big leap into the exciting space of fusing search with social media. We saw Facebook take a small step by fusing with Friendfeed's search capability last month. Enhanced social media search functionality is an industry hot topic. Regardless of the Twitter, Google and Microsoft, social media and search are moving closer to one another each day.
*SEO stands for search engine optimization. SEO results are the results that come up "naturally" in the main area of your search page.
*SEM stand for search engine marketing. SEM results are paid advertisements and come up on the right hand side of your screen.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
