Twitter Inc. (NYSE:TWTR) is getting a boost within its content streaming service. The microblogging site has gained a lot of positive attention for housing breaking news stories, developing stories, and gaining additional insights into breaking news stories, and even social news stories – before the mainstream media has a chance to connect with it. Now, the company has worked out a deal with Google Inc. (NASDAQ:GOOG), which will put tweets in Google’s search in real-time. The deal will mean that beginning during the first half of this year, people who are searching on Google will begin seeing search results that include tweets that have been sent out – which contain the keywords they’re searching for. For Google, this is a nice boost in content, because Twitter has 284 million users.
Ultimately, this is all due to CEO Dick Costolo’s move to ensure that tweets are seen by more people, and to generate more precious advertising revenue. User growth is slowing down for the company, and that is really the case with a lot of social networks – so this move is important because it gives the company an opportunity to expand their user base somewhat, as well as build their advertising campaign, too. This comes shortly after Twitter announced a deal with Flipboard, which will boast Twitter’s advertising presence, and push the bottom line of the company even further.
Twitter also had a positive quarterly earning’s report released last week, which was another reason for those who supported the social network to celebrate. Twitter began receiving criticism during 2014 for their inability to adapt and push forward by generating more advertising revenue. That coupled with slowing user growth, which left a lot of questions being asked by investors – of which who are the most important to capture in an effort to drive and propel the business forward.
However, this venture won’t just benefit Twitter. While the benefits to Twitter are obvious, the benefits for Google are less obvious, but still benefits nonetheless. Specifically, it will allow more real-time data to enter the Google stream, as searches to real-time tweets and information are found. Details of the deal have been few and far between, but industry experts believe that a data licensing revenue will be what Twitter earns from this deal – and that would be to the tune of $41 million. This is a unique deal, and one that will undoubtedly attract a lot of attention to both companies.