Comments on: Sanity-checking Twitter’s Valuation http://www.katescomment.com/twitters-valuation/ Thoughts on British ICT, energy & environment, "Cloud", and security from Memset's MD Sat, 28 Jan 2012 11:21:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Justin Bowserhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2178 Justin Bowser Thu, 23 Sep 2010 12:53:42 +0000 http://www.katescomment.com/?p=281#comment-2178 Hi Kate, I had this very same discussion with a friend the other day... both in terms of how Twitter might (or might not) commercialise themselves and also whether it makes commercial sense for companies to maintain a presence on Twitter. You're absolutely right IMO that they have no real IP, and so their most obvious potential value comes from commercialisation of their user base. One observation I'd like to make is that there's more than one way to commercialise an idea, and one of those ways is to plan for an acquisition. Now that Google has canned Wave, principally it seems because of the slow take-up, they might be interested in Twitter's 20 million US users... and so then would Microsoft. Products like Alterian SM2 (and no I don't work for them!!!) also seem to suggest that there's value in the analysis of Twitter data, especially if using semantic and 'sentiment' analysis to work out what people are talking about and why. Perhaps a natural extension of Google Analytics (which itself is a great product with no direct commercialisation, but that draws in new AdWords customers). Their challenge, as you rightly point out, is to do this soon before they become another FriendsReunited.who? :o) Hi Kate, I had this very same discussion with a friend the other day… both in terms of how Twitter might (or might not) commercialise themselves and also whether it makes commercial sense for companies to maintain a presence on Twitter.

You’re absolutely right IMO that they have no real IP, and so their most obvious potential value comes from commercialisation of their user base.

One observation I’d like to make is that there’s more than one way to commercialise an idea, and one of those ways is to plan for an acquisition. Now that Google has canned Wave, principally it seems because of the slow take-up, they might be interested in Twitter’s 20 million US users… and so then would Microsoft.

Products like Alterian SM2 (and no I don’t work for them!!!) also seem to suggest that there’s value in the analysis of Twitter data, especially if using semantic and ‘sentiment’ analysis to work out what people are talking about and why. Perhaps a natural extension of Google Analytics (which itself is a great product with no direct commercialisation, but that draws in new AdWords customers).

Their challenge, as you rightly point out, is to do this soon before they become another FriendsReunited.who?

:o )

]]> By: Ricardo Niederberger Cabralhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2133 Ricardo Niederberger Cabral Sun, 01 Aug 2010 20:24:15 +0000 http://www.katescomment.com/?p=281#comment-2133 Twitter's value comes from it's intangible mindshare. This is very hard to put a price tag on. Achieving such mindshare through plain-old marketing is very cost-ineffective. Twitter’s value comes from it’s intangible mindshare. This is very hard to put a price tag on. Achieving such mindshare through plain-old marketing is very cost-ineffective.

]]> By: katecwhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2130 katecw Thu, 29 Jul 2010 18:59:28 +0000 http://www.katescomment.com/?p=281#comment-2130 @Greg Twitter's searches mostly happen via their API and are limited to Tweets so in no way comparable to the awesome advertising engine that is Google. Further, once again, Google has some very special tech in the form of Page Rank and such, while Twitter's search is very basic. Also, the content being searched is arguably of very little value compared to the 'Web as a whole! @Greg Twitter’s searches mostly happen via their API and are limited to Tweets so in no way comparable to the awesome advertising engine that is Google. Further, once again, Google has some very special tech in the form of Page Rank and such, while Twitter’s search is very basic. Also, the content being searched is arguably of very little value compared to the ‘Web as a whole!

]]> By: Leonhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2127 Leon Wed, 28 Jul 2010 07:50:45 +0000 http://www.katescomment.com/?p=281#comment-2127 I think it would be extremely difficult for Twitter to make any money from it's users as they are used to the service being free of charge and if they all of a sudden had to start paing for it, they would probably look for and find another service that was free. The only way they would ever make money would be from businesses paying for some type of service and the only thing I can think of is advertising. I think it would be extremely difficult for Twitter to make any money from it’s users as they are used to the service being free of charge and if they all of a sudden had to start paing for it, they would probably look for and find another service that was free. The only way they would ever make money would be from businesses paying for some type of service and the only thing I can think of is advertising.

]]> By: Greg Kiddhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2110 Greg Kidd Sat, 03 Jul 2010 08:46:00 +0000 http://www.katescomment.com/?p=281#comment-2110 Kate, somehow you missed that Twitter is the second largest search engine in the world. Its search volume has surpassed that of Yahoo and Bing combined. Its true that Google still has 4x the volume of Twitter. Not quite sure how you missed that fact, or the ability of Twitter to monetize search results in the same manner that Google does. Are you unaware of all the revenue deals Twitter has already cut in this realm? Kate,

somehow you missed that Twitter is the second largest search engine in the world. Its search volume has surpassed that of Yahoo and Bing combined. Its true that Google still has 4x the volume of Twitter. Not quite sure how you missed that fact, or the ability of Twitter to monetize search results in the same manner that Google does. Are you unaware of all the revenue deals Twitter has already cut in this realm?

]]> By: Anne Selenehttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2004 Anne Selene Fri, 12 Mar 2010 12:09:04 +0000 http://www.katescomment.com/?p=281#comment-2004 Kate, I agree to you in this but don't you think money would make them innovate? I think they could earn a lot of money on their SMS service if they had SMS servers with a cash register hihi... I bet the innovation behind Google has changed a lot since the early days and for sure they have learned how to make money out of their technology. I use their web translator every day and my daughter uses the speech function to learn English - American though ;( Google Earth is perfect tool for our business and even though it's for free for must the pro version is US$400/year. They're clever and innovative giving the world what the world needs. Twitter on their hand is in my opinion rubbish because I use Facebook haha and FB does activate you more. But there is several new innovations we're working with so who knows we might be the next of the next (or last of the last ha ha) xxx Anne Selene Kate, I agree to you in this but don’t you think money would make them innovate? I think they could earn a lot of money on their SMS service if they had SMS servers with a cash register hihi…

I bet the innovation behind Google has changed a lot since the early days and for sure they have learned how to make money out of their technology. I use their web translator every day and my daughter uses the speech function to learn English – American though ;(

Google Earth is perfect tool for our business and even though it’s for free for must the pro version is US$400/year. They’re clever and innovative giving the world what the world needs.

Twitter on their hand is in my opinion rubbish because I use Facebook haha and FB does activate you more.

But there is several new innovations we’re working with so who knows we might be the next of the next (or last of the last ha ha)

xxx Anne Selene

]]> By: Kate Craig-Woodhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2003 Kate Craig-Wood Fri, 12 Mar 2010 11:23:42 +0000 http://www.katescomment.com/?p=281#comment-2003 @Anne But Google had a genuine innovation in PageRank, which has proved resilient despite attempts to replicate it. Also, there is a clear way to make money from a search engine (ie. advertising) since people are actively looking for something. Twitter neither has a special, hard to replicate innovation, nor a clear way to generate revenue from the users even if they did manage to make their site sticky (which it is not - most heavy users use 3rd party clients already). @Anne But Google had a genuine innovation in PageRank, which has proved resilient despite attempts to replicate it. Also, there is a clear way to make money from a search engine (ie. advertising) since people are actively looking for something. Twitter neither has a special, hard to replicate innovation, nor a clear way to generate revenue from the users even if they did manage to make their site sticky (which it is not – most heavy users use 3rd party clients already).

]]> By: Anne Selenehttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-2002 Anne Selene Fri, 12 Mar 2010 05:18:08 +0000 http://www.katescomment.com/?p=281#comment-2002 Hi Katie, Interesting reading and sure, Twitter is simple but don't forget that so was Google and it was because of the simple things they did grow big, VERY big. We don't know what Twitter's plan are but for sure with so many users they only need to say "hi" with something new and without basically any marketing cost all of their users will know and most papers around the world will bring the message further. Based on this Twitter might be worth billions... just wait and see maybe? xxx Anne Selene Hi Katie,

Interesting reading and sure, Twitter is simple but don’t forget that so was Google and it was because of the simple things they did grow big, VERY big.

We don’t know what Twitter’s plan are but for sure with so many users they only need to say “hi” with something new and without basically any marketing cost all of their users will know and most papers around the world will bring the message further.

Based on this Twitter might be worth billions… just wait and see maybe?

xxx Anne Selene

]]> By: Kate Craig-Woodhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-1974 Kate Craig-Wood Wed, 24 Feb 2010 18:45:09 +0000 http://www.katescomment.com/?p=281#comment-1974 @Gordon No I'd not seen those, but I'm very unsurprised to see someone offering a generalised service! Thanks for the pointer. :) @Gordon No I’d not seen those, but I’m very unsurprised to see someone offering a generalised service! Thanks for the pointer. :)

]]> By: Gordon Jolyhttp://www.katescomment.com/twitters-valuation/comment-page-1/#comment-1973 Gordon Joly Wed, 24 Feb 2010 18:33:51 +0000 http://www.katescomment.com/?p=281#comment-1973 And http://identi.ca/ ? And http://identi.ca/ ?

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