Twitter may have finally found a revenue model.
The microblogging site is in separate talks with Google Inc. and Microsoft Corp. to license its feeds to show up in Google and Bing search results, according to the Wall Street Journal’s All Things Digital blog. All the majesty of the Twitterverse might soon be visited upon search engine users, sure, but more importantly, it would provide actual revenue to a company that famously has been without a monetization model for its entire short life.
Payment structures (upfront or recurring?) and the actual terms of any deals that might be struck are unknown.
In some ways the search engine integration is a natural concept. Twitter has retooled itself as its built its user base up, recognizing its real-time ability to disseminate information as a valuable source of trending and even news reporting. Earlier this year it overhauled its home page to act as a sort of search engine, making its feeds searchable and implementing “trending topics” so users and visitors can see what people are talking about around the world.
The site attempted to use advertising to make money, to no avail (its format makes it difficult to support ads). It also, after it became clear that businesses have vbeen leveraging the site for promotions and loyalty programs, attempted to create premium business services that would be paid for by corporations. That initiative never really got off the ground.
Despite the fits and starts, Twitter has been successful in terms of raising venture capital: the latest infusion brings it to $155 million, making it a $1 billion valuation for the company. Lucrative licensing deals with two software giants might just be its ticket to justification for all of that investor faith.
