Tuesday, March 10, 2009

OnlineSpin: Why Google Will Buy Twitter And Make Billions

Last week Joe wrote "Agencies Head To The Big Easy To Face Hard Topics."

Lisbeth kramer wrote in response, "I SOOO wish I could be there, so I'm hoping you can be that 'fly on the wall' with your tweets. I hope you might even do a more concentrated response when you return as I think for me, from biz perspective the short bites leave you well...needing more.

I express this as I believe YOU ARE SO VERY RIGHT about the prominence of the subject matter. I can only speak for me, but with my experience on both sides and well integrated experience, your points are pivotal to the future.

This is one impassioned individual who will be very much wanting to be in the loop of the exchanges shared."

Paula Lynn wrote, "Company sale value: when a company incurs debt that cannot be covered by the profit earned with the company being bought along with increasing profit to the buying company, then the company trying to be sold is worth nothing.

If Wall Street had a nickel for every 'going tos' with no value -- wait, check it out!"

Tuesday, March 10, 2009
Why Google Will Buy Twitter And Make Billions
By Joe Marchese

To paraphrase Ron Burgundy, Google is kind of a big deal -- I'm willing to bet Google's study reeks of rich mahogany and has many leather-bound books. The ability to organize information on the Web (search results) and to monetize people's intentions (marketing based on what people are searching for) is Google's golden goose. Simply put, Google is a multibillion-dollar company because it can put marketers in front of people at the right time in the right way. Google has cornered the market on searching the Web for information, and monetizing that behavior. Twitter is introducing the world to a new type of search, and with the perfection of this new type of search will come all the riches of search marketing. This, in my opinion, is what will make Twitter worth billions -- and why Google will (or at least should) buy Twitter.


Using Google to search the Internet helps people to find information on a subject. As Twitter's search continues to evolve, using Twitter for search will help people find out where to find current discussions on a subject.

Think of how powerful this is. If I want to research a subject, Google is the way to go. If I want to find out what is being said about a topic at any given moment, Twitter is my source. People are already fascinated by watching people discuss various events or topics live in real time, using Twitter search and # (hash tags). What these services do is to provide me with information (a stream of people's thoughts) on any keyword, or series of keywords. Sound familiar?

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If this doesn't sound like an amazingly useful and innovative breakthrough, it's only because I am a lousy writer and can't do it justice here. Search functionality on Twitter has a way to go (another reason why Google makes a perfect partner), but imagine if I could search New York City for people discussing "run central park." I am going to see the most recent thoughts of people who have, or are going to run in Central Park. That might produce results like: "Just went for a run in central park, big event near Tavern On The Green really slowed me down" or "about to go for a run in central park, going to do 4 miles, anyone else going," Again, if this is not striking you as an incredibly useful tool, then it's because I am not doing the potential for searching people's current discussions justice.

Then comes the money. Google has proven that if you can provide a useful search experience, then you can provide useful marketing. If you can provide useful marketing, you can return amazing ROI for marketers. If you can provide amazing ROI for marketers, you can make a lot of money. If Twitter perfects the search of current discussions, monetization will be right around the corner. There will be some rules that will need to be adapted from Google's AdWords model, but the sentiment is the same. Would Samsung like to be put in front of someone who wants to know what people are saying about flat-screen TVs? For that matter, would any brand like the opportunity to talk to people who are searching for what other people are saying about their brand?

There are a lot of reason why Twitter has amazing value to marketers, and therefore revenue potential even beyond search, but search is the key to most of them. I had a conversation with Forrester's Josh Bernoff ( http://twitter.com/jbernoff ) at last week's 4As conference about just this subject and he had some very interesting thoughts. If Google wants to organize the world's information and make it accessible [and monetize it], I would like to point out that services like Twitter and Facebook status updates (big caveat is that you have to know Facebook wants to do this as well, and Microsoft will want to help) are becoming a very large part of the world's information: information about what people are saying right now.

What do you think? @ me on Twitter here: http://twitter.com/joemarchese and/or leave a comment below. I read every one even if I can't respond to them all.

Joe Marchese is President of socialvibe.

Online Spin for Tuesday, March 10, 2009:

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