@ EconSM: How Twitter Plans To Make Money From Search, Carriers and Content

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@ EconSM: How Twitter Plans To Make Money From Search, Carriers and Content

We’ve gotten hints about Twitter’s business model from its founders, its backers and random speculators—but Kevin Thau, Twitter’s director of mobile business development, gave EconSM attendees a more tangible picture of the startup’s plans for a three-pronged revenue stream: It’s about search, carriers and content.

Thau joined Twitter in mid-January, since then, he said the company has brokered about a dozen business deals with partners like mobile service providers, handset makers and even media companies. MarketWatch’s EIC David Callaway grilled him on the details:

—Search: Twitter’s real-time search capabilities have been well-documented (so much so, that even Google has stepped up its real-time search features); Thau said the startup will monetize its search traffic “in some way”—though he didn’t elaborate.

—Carriers: Much of Twitter’s traffic comes from mobile: both through data plans and via SMS. Thau said getting some sort of a cut of the carriers’ data business wouldn’t be a huge source of revenue—but definitely a portion. Twitter’s also working on handset deals that would “integrate the service” into certain devices right out of the box.

—Content: MTV is ~~sharing ad revs~~ from an upcoming show with Twitter, so will we see an influx of similar content deals? (Note: MTV has since noted that rev-share talks between the two companies were not finalized, and that Twitter will not be getting a cut of the ad sales for the foreseeable future) Thau said yes—which is partly why they hired a new exec to focus on the media/entertainment business. “The media industry is looking for ways to stay fresh and interactive; you’re already seeing CNN and ABC Nightline using it, and we think more media companies will start using Twitter as a utility.”

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Tameka Kee

@GeekyChic May 14, 2009 1:35 PM ET

Posted In: Twitter

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Carri Bugbee

Jim_S is right on the money! And anyone who doesn't think Twitter search has value obviously hasn't used Twitter for business and doesn't understand the power of the platform.. Search is EXACTLY what makes Twitter so useful—for a lot of things.

The data available for competitive research, product research, finding and connecting with a highly targeted niche group of people (and about 100 other purposes) is invaluable. Who needs focus groups when people are already telling you what you need to know, completely unsolicited? Who needs mailing lists when you can connect in a more visceral way with people who've stated their love for products and categories? Obviously, these things won't go away overnight, but they might eventually.

Bottom line: if you're not spending as much time searching as you're spending Tweeting, then it's likely you don't understand what makes Twitter useful.

Max

Twitter search for what? To see how many tweeters are eating chicken potpie at 1:14am in the morning, or how many tweeters finally found the chocolate chip cookie recipe they've been looking for the past month? There is ZERO added-value, there is no useful search content value, and there is not a high retention rate to warrant any outrageous valuation. I have a great business model that can monetize Twitter also, but of course I can't elaborate either, because there is no model. Remember, Twitter at its core is just a micro-blogging service; a mini-Wordpress, hence their only revenue models are to copy Wordpress and other blog services out there (which there aren't many models). Twitter failed when they didn't come out first as a paid service (like a mini-Typepad) and now that window is closed.

scott

Hey, you guys are going to love this! Everyone needs more money, check out http://makingmoneyatoz.com/ a no strings attached website where you can search and add money making ideas and read comments from others who have tried the idea. If any of you have a money making idea you would like to share, you can add it for free with the link provided http://makingmoneyatoz.com/submit.php

Sleker

Jim_S - I just don't get why Twitter is more powerful than a mobile Facebook status update which has a lot more information about me than Twitter does. Am I crazy or is the future of Twitter really as a buzz meter? Why would carriers want to sign up with them? Am i just not getting it?

Jim_S

I'm going to go out on a limb and say that not only is search going to be successful for Twitter, but it will be the realization of the Twitter business model. The power comes from the database that Twitter users generate through participation: Twitter has the ability to 1) determine what is popular, 2)how to connect keywords, tagging and GEOTAGGING to search, and 3) users' content preferences based on their own behavior. Imagine a Google search that uses the diary of your life to deliver results that are relevant to you. Now imagine the value of that interaction to marketers. It's Google AdSense on crack ... (oh, and it's way more mobile)

barb dybwad

I also disagree with jenkins and Ashkan. Twitter search has already been invaluable to me in my profession and is far more powerful than Google at exposing emerging trends as they're happening. Don't confuse "it has no value to me personally" with "it has no value to anyone."

thomas johnson

I disagree with jenkins. I believe the search function of twitter is vastly more powerful at getting at what people are thinking in reality. Google is a collection of areas, all finished products, all processed, ran through the coding system and having a situated agenda. Twitter is the people their thoughts, and knowing what people are thinking is the key to knowing what they are doing. It's something entirely different from google imo. It's a tool of the people not 'for' the people.

Ashkan Karbasfrooshan

Agree with Jenkins. Last year some were saying that "Facebook's search was the biggest threat to Google, blah-blah" and that the $15B valuation was logical etc.

Today, it's Twitter's turn.

Both Facebook and Twitter's growth and user/visitor metrics are amazing, but to suggest that they are in any way threats to Google (or even at best stand-alone billion dollar businesses) is laughable.

The only business model is

a) raise boatloads of capital from VCs and then
b) an exit to someone who is desperate enough to pull the trigger.

That, basically, has been the main Web business model dating back at least 15 years…

jenkins

The Search stuff is complete nonsense so that they can get Microsoft to buy them. There is no demonstrated value (for advertisers) of a Twitter search query. None. Nada. Zilch. This is all about PR. There is no value to someone searching for Twitter posts. Period.