While buying Tumblr isn’t necessarily a bad deal for the two companies, as my colleague Mathew Ingram wrote, there’s another photo site out there that might have been an even better deal: Pinterest.

In many ways, Pinterest is also building a mobile-friendly photo site just like Tumblr, but Pinterest is also in the midst of constructing the underpinnings for a potentially much more lucrative native revenue experience. Pinterest is oriented around commerce and consumers craving particular items. That’s good for business.

No, buying Pinterest wouldn’t help Yahoo discover its inner tween. It’s a well-known fact that Pinterest is populated mainly by adult women — not exactly the demographic Yahoo needs to attract. And no, considering Pinterest’s valuation as of its last funding round, such an acquisition probably wouldn’t have come cheap. Acquiring the company would require a much bigger departure from Yahoo’s current mass-market advertising into the world of e-commerce and affliate links. It could be a harder sell to the company’s investors, and a bigger transition for everyone.

But if Yahoo is looking to shell out the big bucks for a site with viral growth, visuals to compete with Facebook, and a devoted community of users, Pinterest might have been the better choice. According to a Pew report in December, out of all online adults (which is basically anyone with an internet connection), just six percent of those people visited Tumblr on a regular basis, compared with 13 percent on Instagram (which isn’t exactly for sale), and 15 percent on Pinterest — only Twitter comes in at 16 percent ahead of the others and behind behemoth Facebook at 67 percent.

Less than a year out of beta, Pinterest is a dominant force on the web; a place where women of all ages collect photos of things that inspire them or things that they want to remember or create. For many, it’s a digital wish-list. And because of that, Pinterest sends huge amounts of traffic to online retailers. To be the intermediary between the people and the stores is a good place to be — you’re a crucial link that drives the sales, without any of the hassle of shipping or orders or user acquisitions that come with e-commerce.

Pinterest CEO Ben Silbermann at the company’s new offices in San Francisco.

Pinterest has no business model in place right now — the site is free to join and for brands to integrate with — but that’s just right now, and it likely won’t last. The company just announced yesterday that it is starting to connect photos of items back to the brands who sell them, and it’s not hard to image how this could play out.

Tumblr does have a business model right now based on ads, and it just started rolling them out on mobile users in April. But the company has been reportedly burning through cash and not yet making a lot of revenue, hoping to bring in $100 million this year. But people are usually pretty unhappy about a free product suddenly peppering them with ads — especially if those ads are dropped into a feed that users have created (just ask anyone how they feel about Facebook ads.) CEO David Karp said at our paidContent event just last month that he wants advertising on the site to be native and unobstrusive.

“We focused on higher up in the funnel, the type of advertising that creates intent,” Karp told us in April. “It gives room for the most creative advertisers to create their best work. I think we’ve started to prove it, and see really good examples of it.”

But that’s a hard nut to crack.

Suddenly, the possible Pinterest model of taking a cut on sales and traffic resulting from users creating digital shopping lists looks a lot less disruptive to the core experience, and potentially more lucrative, than trying to solve mobile display ads for the Tumblr feed. Making money off traffic and sales wouldn’t disrupt Pinterest’s core product, and would generally fit in with the company’s existing user experience, just as promoted tweets are fitting with Twitter’s on both desktop and mobile (a profitable venture so far estimated to bring Twitter $528 million in ad revenue this year.)

So no, buying Pinterest wouldn’t make Yahoo all that hip. But buying the site that has potential to become a strong force in modern, social retail? Seems like a good bet — especially since teens might leave you once Mom joins and you become mainstream.

Parakweet is a company that’s working to use natural language processing to cull through your tweets and make smart, targeted suggestions based on the data. On Friday, the company plans to announce the launch of two products. One is Bookvi.be, a consumer-oriented book recommendation engine, and TrendFinder For Movies, which is a social media dashboard primarily for entertainment companies to monitor conversations around movies. The latter is a paid product that provides the company with revenue, and the former is free for consumers.

“It’s a very hard problem we’ve tackled, which is accurately identifying sentiments,” CEO Ramesh Haridas said. “With 400 million tweets a day, there are 700,000 a day discussing movies, and if you tried text-matching techniques you’d come back with 40 million results. Many movies and books have very common titles, so you’d just drown in data.”

Both products use natural language processing to figure out how common a title is on Twitter, but also how a consumer is tweeting about a particular product, and they make recommendations based on those tweets. For instance, if I tweeted that a particular book is terrible and no one should ever read it, it would look ridiculous for a book recommendation engine to suggest that book to people. So Bookvi.be is structured to recognize the words I’m using in my tweet and know not to recommend that book. Users can choose to have a weekly email send to them with book suggestions, and they can type in their Twitter username to get book suggestions based on the people they follow.

“The bar on accuracy is very high,” Haridas said. “Especially if it’s sent via email, the precision needs to be intact.”

I’ve looked at a good number of social recommendation tools, and this one definitely stood out. For one, it was incredibly accurate — all the books it suggested were books I would actually read. But most importantly, it didn’t require me to create a new social network, or depend on friends for reviews, so you could get a lot of value from it right away. This is the obvious benefit of using someone else’s social graph, but Twitter seems perfectly suited to making content recommendations for things like books. Because unlike my Facebook friends, the people I follow on Twitter tend to accurately reflect my intellectual interests.

Of course, there are the obvious potential pitfalls of building a product around someone else’s platform, although Haridas said they support Facebook and are adding other platforms. But there’s a good deal of money to be made in accurately processing and understanding the words people are tweeting, as evidenced by Twitter’s acquisition of Lucky Sort this week, a similar company that also tries to figure out what people are talking about on social media.  As I’ve written before, as Twitter ramps up its advertising products it’s more important than ever for the company to be able to provide brands with more accurate ad targeting which hinges on the words people are tweeting and searching.

Take a look back at our live coverage of Google’s flagship conference, which started at 9am PT Wednesday. We’re not expecting as major a news event as we have in past years, but there will be no shortage of updates to the company’s plans for Android, Chrome, YouTube, and its cloud-computing services. We’ll have a full contingent of GigaOM reporters at the show bringing you updates both here and throughout the course of the day, so stay tuned.

So far, Google has announced:

• 900 million Android activations
• Three new Google Maps location APIs
• Synced Google Cloud Messaging accounts, which will let you sync notifications across devices.
• New Google Play Game Services features that can do multiplayer gaming through Google+
• Android Studio, a new development environment for Android app developers.
• A new design for the Google Play app store that highlights tablet apps.
• Google Play Music All Access, a subscription music service.
• A new educational initiative involving Android tablets and apps for education.
• Sweeping updates to Google+, including a new stream design.
• Conversational search within Chrome.
• Big changes to Google Maps.

We wrote about Twitter’s collaboration with a startup called Snappy TV and Turner Broadcasting that allowed the NCAA to tweet out highlight clips from March Madness throughout the annual college basketball tournament, with the clips sponsored by AT&T and Coke Zero, and a Twitter spokesperson confirmed Monday that the ESPN clips will appear in a similar manner inside Twitter Cards. The report indicated that Twitter will be selling advertising specifically around the sports clips that are tweeted out.

The company announced major updates to its Cards technology in early April that allowed for more types of content to appear in the tweets and more app promotion for third-party apps cross-posting to Twitter. The key to Cards is that a user never has to leave Twitter to view the content the Cards contain — everything is viewable directly in stream, which encourages users to stay on Twitter’s website.

My colleague Mathew Ingram and I have written about Twitter’s transformation over the past year or so to become more of a media company, and Twitter’s partnerships with television, music and video outlets are numerous. There were rumors of deals with Viacom and NBC, a partnership with Nielson to measure user activity around television, the launch of the Twitter #music app and following music entertainment show.

For Twitter, all of this content could make tweets more engaging for users who become captive audience members participating in live events. But perhaps more importantly for the company, if it’s gearing up for the IPO everyone expects, video provides an excellent platform for advertising and big brand partnerships that could make Twitter a lot of money.

Branch launched publicly about eight months ago with the idea of creating a public space for limited conversations among a few people. While it’s fostered some interesting discussions so far (“Is there a bubble?” “What have you learned about visiting Las Vegas?” “How much should a writer be paid, if anything?“), the company is clearly still figuring out how to get conversations going on the site.

I recently spoke with people from Branch and Hyatt, one of the first companies that’s been using Branch for marketing purposes, and it was clear from our conversation that Branch could have a real future in giving companies a place to talk to with consumers in a way that’s both fairly public and transparent but also limited in terms of the investment required by the companies. In other words, some of the aspects of Branch that make it unappealing to users could actually work in its favor when it comes to courting large businesses as customers — and potentially making money on the site.

Branch wasn’t created by one of the former Twitter founders like Medium was, but instead joined the Obvious Corp back in March of 2012. We wrote about the company in July and talked with CEO Josh Miller, who explained the idea behind the product and how he wanted to create the types of conversations people have with friends around a dinner table, but transport those conversations online to be shared and viewed publicly.

But as my colleague Mathew Ingram noted at the time, that closed nature of Branch conversations that are then posted online are reminiscent of blogs without comments — they seem odd to those of use who’ve become used to the spontaneous, collaborative qualities of traditional social media:

“The discussion also seems oddly sterile for anyone who has gotten used to the somewhat chaotic nature of a Twitter debate — or even in blog comments. And because it is less open, there is less of an opportunity for flames or irrelevant comments, but there is also less opportunity for a smart comment from a stranger.”

Yet the closed nature of the discussions and the greater assurance of quality control are obvious perks for a company like Hyatt that wants to hear what frequent travelers think of hotels, and wants to share that feedback publicly but doesn’t necessarily want to maintain a lengthy Facebook feed about the topic. Not to mention, users would probably get annoyed if Hyatt retweeted a lot of people tweeting about hotels, explained Dan Moriarty, the director of digital strategy for Hyatt.

But when I asked Moriarty why he doesn’t just send out a survey asking people what they think of hotels, he explained that the company has learned the value of sharing public feedback with users and the company gets more out of the experience in the long run by appearing more transparent.

“I think we’re over that worry,” he said about the possibility that users would post negative things publicly about Hyatt on a company Branch thread. “I think we’ve done a similar thing on Facebook or the website we started for the campaign, so we’ve worked through the pain of worrying about what people would say about us in social spaces.”

He noted that with a Branch conversation, Hyatt can pick influential travel or hotel bloggers and ask them about hotels, and then once the Branch is over, they can keep sharing the conversation and make sure other users see how the company took that feedback into account. So a conversation hosted with 20 people can get shared out to thousands of others. You could certainly argue that it’s a lot less transparent and truly open for a company to hand-pick people for a Branch conversation than respond to angry customers on Twitter, but you can see the appeal from the company’s perspective, and there’s no reason a company couldn’t do both.

“When you look at Branch… it’s just like-minded people opting into a conversation on things they care about,” he said. “So we definitely get a higher-quality of responses that are more thought through.”

Libby Brittain, the director of editorial development for Branch, said the company is still new, and they’re not sure what a money-making strategy with large corporate partners would look like, but it’s something they’ll evaluate.

“For publishers or brands, they’ve been told to be conversational for years,” she said. “But sometimes they really struggle to deliver on that promise with their customers or clients. I’ve been pleasantly surprised how this has worked.”

Twitter’s deal means the company is officially moving into larger territory when it comes to advertising and turning the social media company into a serious platform for brands to spend their budgets. The report says the deal will give SMG’s clients access to special advertising slots and opportunities with Twitter.

The company has been improving its different ad products for businesses of all sizes, recently rolling out keyword advertising that allows companies to advertise around particular words that individuals tweet. A research firm recently estimated that Twitter will earn nearly $1 billion in advertising revenue in 2014, likely due to strong growth on mobile, making $528 million this year and $950 million in 2014.

Social media use around television and broadcast events has provided huge advertising opportunities for Twitter already, with the company forging media partnerships around TV and sports, like the NCAA March Madness tournament.

“Ben Finkel is my co-founder here at Jelly. Ben and I have been friends and collaborators for many years. During one of our frequent walk-and-talks around San Francisco’s Yerba Buena Park, we accidentally came up with the idea for Jelly. It was one of those ideas that we couldn’t get out of our heads,” Stone wrote in a blog post on Monday.

Finkel will join Stone at Jelly as CTO of the company, but there is still no word on when Jelly will open its doors. The company is backed by the Obvious Corp., the parent company created by Twitter co-founders and early employees including Stone to incubate a couple of content-related startups like Medium, Branch, and now Jelly.

Finkel originally founded Fluther, a question and answer site that was seed funded by a group of angels including Ron Conway and Marc Andreessen. Stone served as an advisor to the company, and in December 2010, Twitter went ahead and acquired the startup, primarily for the engineering talent behind the company. Finkel then served as a senior software engineer and then engineering manager for Twitter, where he was in charge of user growth.

“Ben managed New User Experience on the Growth Team at Twitter, helping grow an active user base from fifty million to more than two hundred million people,” Stone wrote. That’s certainly no small job, and according to his LinkedIn page, Finkel just departed Twitter last month.

As my colleague Mathew Ingram wrote, LinkedIn’s media ambitions began back before the company went public in 2011, but the full scope of what the company had in mind is evident in this redesign launched Thursday for iPhone and Android.

The new feed looks a heck of a lot more like Facebook’s News Feed than a digital resume service. Gone are the weird folders a user used to see on logging in, which are now replaced with a stream of information that combines both professional updates (which of your friends have new LinkedIn connections or jobs), and news stories, as well as a top bar that shows “top stories for you,” and other customizable features. Users can like or comment on stories directly from the feed, which again, provides the service with more data on user interests.

While its stock price is doing well and it’s well on its way to becoming the digital resume of choice for a lot of professionals, LinkedIn still only has 200 million registered users, which isn’t all that significant when you consider that those aren’t active users — just people with accounts. (For a point of comparison, Twitter, which is a much newer company, has 200 million users — active ones.)

LinkedIn’s business model hinges on the “talent solutions,” or the corporate recruiting arm of the company, which brought in more than 50 percent of the revenue last quarter. But that business needs users to continue uploading information to LinkedIn. When users note when they get new jobs or list their skills, they’re providing more data for recruiters and companies to evaluate, making that section of the business more valuable. And if users never visit LinkedIn, that’s a problem, as we’ve written before.

Scrolling through this feed, it’s easy to see why adding news stories and content to the LinkedIn site makes it far more engaging for users. After all, people don’t change jobs and update their LinkedIn profiles often enough to populate a timely news feed, but if I checked the LinkedIn app to find an interesting mix of technology and media news, I might be more likely to come back for a visit — not just to accept a connection.

However, a few themes came out of our presentations from Paul Berry, founder and CEO of RebelMouse, Jeff Fluhr, co-founder and CEO of Spreecast, Matt Galligan, co-founder and CEO of Circa, Aria Haghighi, co-Founder and CTO of Prismatic, and Josh Miller, co-founder of Branch. Here were the ones we found most compelling:

• The future of news will come from other people. This isn’t to say that the majority of the world will eventually get all of their news from Twitter and Facebook, but it is fair to say that we’ll increasingly rely on recommendations and smarter social cues from friends and respected strangers as we sort through the vast amount of information available online. This could mean something like Prismatic, which as my colleague Mathew Ingram has written, is working to combine data from social media with individual interests to create a smarter social reader for news.
• We’ll be reading all the news that fits — on mobile. For traditional sites, having a strategy that works for mobile is not longer an option, but we’ll increasingly see mobile-specific approaches from startups like Instagram, which was able to scale successfully by creating a simple, fast photo experience for mobile users in a hurry, or Circa, the startup that’s re-thinking how to structure news stories based on the attention spans and needs of mobile readers.  ”We distill these important details into specific pages,” Galligan said. “You hop through and jump from point to point.”
• It’s all about the individual person and the brand they build. Obviously individuals have always had a hand in shaping the news since the days of newspaper editors picking the stories that end up on the front page. But since the early days of blogging we’ve seen the rise of the personal brand grow in importance, and our panel earlier on Wednesday with some of the pre-eminent bloggers like Maria Popova and Andrew Sullivan only solidified the idea that smart, passionate writers can build their own readership online. Berry talked about how RebelMouse is allowing any individual, whether a famous blogger or not, to highlight personal achievements and content in one place, and with the rise of Twitter we’ll likely see this continue. “RebelMouse allows you in a very efficient way to say, let’s make this my splash,” he said.
• People want to talk about the news but they’re looking for smart conversations. We’re moving on from the days of television round-tables and flame wars in comment threads — or at least many people are looking to move on. Several interesting tools have launched recently that allow for more dynamic conversations online about the news, and we’re seeing those conversations happen both in text and multimedia. Spreecast joins the likes of Google+ Hangouts in lettings users host video discussions with additional social components, and Branch is looking to re-invent online discussions by making them invite-only and embeddable across the web.
• Traditional advertising can’t support the future, but no one’s clear what the alternative looks like. Some of our most heated discussions all day came from the discussion over how to make money from content in a way that allows writers and artists to benefit, consumers to enjoy reasonable prices, and businesses to stay afloat. From Popova discussing affiliate links to Buzzfeed discussing sponsored content, it’s clear we’re far from reaching a consensus. But from Prismatic’s efforts to work with brands to make money off their content on the service to Spreecast’s premium services, it’s clear that startups are at least considering smarter ways to approach the problem than traditional banner ads.

Check out the rest of our PaidContent Live 2013 coverage here.

But how exactly ebook publishers reach that audience and how the industry tracks who’s interested in reading what is less clear. A series of ebook publishers who spoke at our PaidContent Live conference in New York on Wednesday talked about the critical importance of gathering data on readership and consumption, and using it to transform the industry:

“The old eveolution of the book publishers used to be very allergic to data. And what you just heard is a very different approach from that. For us it’s about metadata and surfacing. And then rinse and repeat,” said Dominique Raccah, the publisher and CEO of Sourcebooks. “Metadata is a new term in our industry, but it really is the key.”

Raccah pointed out that unless publishers know who is reading the content, it’s hard to craft specific marketing messages or know what people respond to:

“It’s really important to know that book publishers know a lot about what touches readers,” she said. “So it’s important to help craft those messages in interesting ways.”

Rachel Chou, the CMO for Open Road Integrated Media, said they’ve seen a lot of success working with Twitter, as well as sponsored stories in Facebook, to drive traffic and understand where customers are coming from.

“Then after a while, you start understanding what the best partners are,” she said.

Evan Ratliff, founder and CEO of Atavist, said they have a small team but because they’re especially focused on finding customers by building up the Atavist brand, understanding data on the company’s products is important.

“We’re also on a very small level, we’re experiment with different ways of reaching people and social media,” he said.

Check out the rest of our paidContent Live 2013 coverage here, and a video embed of the session follows below:

A transcription of the video follows on the next page

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