Media Money with Julia Boorstin

Yahoo Deal Proves Twitter Model

People love to deride Twitter as a silly startup with no business model. For a year now I've been insisting that Twitter will gradually build a profitable business, and its latest deal with Yahoo!(YHOO) confirms just that.

The deal will share Twitter and Yahoo content across both properties, expanding access to both Tweets and to Yahoo content.

Twitter's been making a slew of non-exclusive deals. Back in October Microsoft announced that Tweets would be integrated into its Bing search engine. Google also announced in late October it would also integrate 'Tweets' into search results to provide users with info in "real time," that all-important buzz word.

Twitter info is in demand. Period. And they have a unique enough product that they can refuse to do any exclusive deals. Though I don't know the details of Twitter's deals with Yahoo, Google or Microsoft, but Twitter is presumably getting a piece of revenue from ads these companies post next to Tweets on their sites. The more places people can read Tweets, the more ad revenue that should generate.

It seems Twitter is on the verge of tapping into its full potential.

A quick visit to the home page shows that Twitter is already helping companies use Twitter successfully -- there are Best Practices and Case Studies. Twitter has so much data about how people interact with brands and companies-- it already presents "Best Practices" and "case Studies" on its site. I think it's only a matter of time before Twitter starts creating a revenue stream around this.

Companies would certainly be willing to pay!

Questions?  Comments?