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For Twitter, Sharing Data WIth Google Would Be Suicide!

The Washington Post ‘n TechCrunch

by Edo Segal — He has launched and sold several companies. In 2000 he founded eNow, a search engine for the Real-time Internet in an age that predated RSS as a popular medium. As such he has had a decade to think about its implications.

He ultimately sold the company (renamed Relegence) to AOL in 2006 and today runs his Incubator/Investment vehicle Futurity Ventures. He recently launched a new search engine for wisdom.

In a way we are all virtual stock holders in Twitter. We all have a vested interest in its success. Facebook is soon to monopolize the social stream to the same extent that Google has done with search. That is not good for anyone, including Facebook. I have had many discussions with people in recent weeks about the face-off between twitter and Facebook and also about the high probability of Twitter cutting a deal with Google. When I was asked by Erick Schonfeld at the Real Tiime Stream Crunchup (Video) event about my opinion on Twitter giving Google their firehose feed, I responded that they could do that if they don?t plan to sell their company in the future. In other words, it is my humble opinion that if Twitter was a publicly traded stock its value would drop by 75% the second that deal was announced and for good reason.

Twitter is important. How often does a company come along that really changes consumer behavior? That creates a new form of media consumption and connectivity? For all the thousands of startups covered on Techcrunch only a few have a profound impact on the arc of internet history. Twitter has earned its spot in that pantheon and now it remains to be seen if it can play a bigger role in how to monetize the stream and in the process build a real business.

At this moment in time, Twitter has such a stronghold on this new form of real-time consumption that it has the potential to dominate the category. But its window of opportunity is closing fast as Facebook and others hurl themselves at that prize. The experience of real-time communication and search, that sense you get of unfolding streams of relevant information to your interests and queries flowing in a digital river has arrived with Twitter coursing first through the rapids. But now that we have arrived at this new medium, what next? Does Twitter become an example of a utility that is emulated by others that already have a monetization engine, leaving Twitter to ultimately drift to a respected place in Wikipedia like Netscape? Or does it continue to push the boundaries and create a sustainable and growing business that will allow it to continue to ride the whitewater?

If twitter is to confine itself to being a communications medium, or even worse, a news distribution engine, it will surely perish. By analogy, Google as a business is not a search engine but an advertising business that is printing money at unprecedented rates. Google does this by owning the equivalent of distribution in the digital age. Its just that the meaning of the word ?distribution? in the digital age has shifted. Google, as the entry point for such a vast audience, effectively owns the distribution on the Internet as a business leader and brand. Its lead continues to grow as the audience grows.

Google’s economics lay in the economy of intent. The intent of users to purchase a product or service when they use Google’s search is what drives its money presses. The context of the users’ actions and interests map to an intention which advertisers are eager to pay for. The ability to automate the placement of advertising next to relevant content and map consumer queries to useful advertising stands at the heart of Google’s success…

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