Twitter Investing in Analytics — Again

Today’s news that Twitter is acquiring the social data analytics firm Gnip provides one more measure of Social Media’s increasing value to companies, institutions and developers. A longtime partner of Twitter, Gnip also works with other social media clients including Tumblr, WordPress and Foursquare.

It will be interesting to watch and see whether this move on the analytics end presages a combination of forces with the other media outlets — for instance, would Twitter consider merging with Tumblr? Combining forces with feature rich apps, such as its acquisition of MoPub 6 months ago, makes sense from a product improvement standpoint. But analytics is a “back end” service, and it’s clear from everything we’ve discussed in class that analytics is the driving force behind many bottom line decisions, for many companies. For Twitter as a company to be able to provide analytics across multiple social media channels would be a sweet deal.

Though Twitter makes most of its money via advertising, data licensing accounted for $23 million — about 9.5% of the companies revenues in Twitter’s fourth quarter, which ended Dec. 31, 2013. That figure was up 80% year-over-year, the company reported.(http://mashable.com/2014/04/15/twitter-buys-gnip/)

No matter how you look at it, it’s hard to argue with a revenue figure that is up 80%, year over year!

There’s more high-powered analysis on Twitter’s move in this Wall Street Journal article.

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