Twitter and Google have made a partnership that will allow people to find tweets quicker than before. The fourth quarter earnings call of Twitter was where the deal was confirmed under which Google will be provided with tweets by Twitter as soon as people post them on its social networking website. With this arrangement, Twitter is hoping to increase its reach and gain even more users. While similar deals have been made by Twitter with Yahoo and Microsoft, it is Google that’s the most valuable because it has the lion’s share of the search engine industry. From 2009 to 2011, Twitter did had a similar deal with Google, which was called the Google Realtime Search.
During those years, there wasn’t any archive search function of Twitter. Then Vice president of engineering at Twitter had said pressure could be reduced with Google doing the archive function for Twitter. However, the social network let the deal lapse, which had come off as a major surprise for some industry observers. A spokesperson of the search engine giant had said that Twitter had proven to be a valuable partner and they were open to collaborations in the future, but it hadn’t been renewed then.
Dick Costolo, Twitter’s CEO said that this new deal isn’t an immediate one. It would take another few months before tweets would start appearing on Google. No further details were provided regarding the terms of the deal, either. Nonetheless, during the earnings call for the fourth quarter, it was noted that $47 million had been generated through data licensing in that quarter. The company’s CEO also said that there was more to come in relation to the deal with Google. He told investors that there were a number of projects in development that would not only expand Twitter’s user base, but also provide a valuable experience to people, whether they are members or not, in any part of the world.
Currently, the total number of users of Twitters is about 288 million, behind 300 million users of Instagram, 347 million users of LinkedIn and 1.39 billion of Facebook. Even though analysts have shown some doubts, the deal with Google could help Twitter in leaping ahead of LinkedIn and Instagram, if not Facebook. Analysts are doubtful because Twitter lost its position in the past 18 months. It had been on 2nd place, but has now fallen behind Instagram and LinkedIn. The engagement per rate is declining whereas other newcomers such as Pinterest are gaining popularity.
It is to be noted that Twitters has the option of generating more money from its existing users if it makes its social network more efficient than its competitors. This data sharing deal could also benefit analytics as they will be able to obtain better numbers than before. Mobile advertising revenue of Twitter contributes 88% to its total revenue and the data sharing deal could allow Twitter to increase that as well because of the increasing numbers of mobile users. International revenue may also see a boost.