Twitter might actually make money!

On the heels of the Associated Press floating the idea of charging search engines for its bulldog edition content comes the news that Twitter is in talks with both Microsoft and Google to include tweets in their search results.  This may be a business model that actually works.

Search engines are, by nature, aggregators of content and serve as the doorway to the internet.  With two search engines competing for market share, that means each must be on the top of their game.  For sites like Twitter, that means their large user base (which generates relevant, in-demand content) is pretty valuable to someone conducting a search query.

These deals would also be the first answers the question of how Twitter will actually monetize that content.  This arrangement would allow Twitter users to take advantage of a still-free service and actually help them attract traffic; it would mean a stream of revenue for Twitter that doesn’t involve someone saying, “Yeah, that sounds like a good idea, so I’ll write a check until you figure out how it makes money”; and it gives Microsoft and Google a way to provide better search results to increase their market share (which attracts advertisers.

It’s a good model, and like the AP’s plan, it takes advantage of the fact that, for the first time in a while, there is legitimate competition among search engines.  This doesn’t work on an internet where one search engine is clearly dominant.  And even though Google is the clear leader in search engine market share right now, Microsoft has the resources to stay in the game for a long time.

For $3, I would have posted this earlier

The entire readership of this blog emailed me about the story that the Associated Press may try to charge a fee for their displaying their news content early.  (Thanks, Mom.)  At first, this seems dumb – trying to delay access to online content sound like trying to put toothpaste back in a tube – once it’s out, it gets everywhere.  But this is less about re-inventing content distribution than it is about recognizing what AP CEO Tom Curley calls an “enviable moment.”

A year ago, relevance meant the top result on a Google search – and doing whatever Google said you had to do to make that happen.  In general, that’s still true.  But since Microsoft is serious about making their Bing search engine a serious competitor to Google, that means that both Google and Bing must be more mindful of that their search results deliver content which is relevant.  If Bing’s news aggregator is posting AP stories before Google News, that’s one more reason for users to move over.

For the AP, it’s not a long-term business strategy – but it is a chance to take advantage of a brewing search war.