Twitter Follows Its Data to Dollars by Buying Social Data Provider Gnip
In an effort to make their user data more accessible, Twitter has announced its acquisition of social data analytics firm Gnip. This move should let the microblogging service gain more control over selling its data. The two companies have partnered since 2010 when Twitter tapped Gnip to be its first data partner and gave them authority to resell Twitter’s historical data to numerous corporate clients. Now that the partnership has evolved into purchase, Twitter will have direct access to Gnip’s abundance of data and be able to work more closely with clients to understand their data demands. Mashable.com posted the latest on this lucrative social data decision.
Today, social data is in high demand by companies of every size and scope. Twitter’s short-and-sweet tweets and ever-growing user base contain a wealth of worthwhile information. This data can help companies make decisions that can boost their business, from offering insight on customers’ choices to contributing to decisions on new factory sites. By partnering with one of their third-party providers, Twitter is taking the lead in leveraging this social data and showing its interest in increasing its business.
Gnip is one of Twitter’s many major acquisitions, which have ranged from a mobile ad exchange to a lockscreen app for Android. In fact, it is just their latest in analytics acquisitions, which have included real-time data firms and social TV companies. Now, the purchase of Gnip will take Twitter much closer to their clients and put their revenue in more direct reach.
According to industry insiders, Twitter’s recent acquisition decisions were wise since they are allowing the company to purchase the pieces that support their success.
While advertising makes up the bulk of Twitter’s revenue, data licensing accounts for about $23 million. In the fourth quarter of 2013, that figure increased by 80% year-over-year.
With the acquisition of Gnip, many are wondering whether Twitter will continue to sell its social data to other firms that are now considered competition. For now, it seems that these firms have long-standing contracts with Twitter and are not aware of any contractual changes. It remains to be seen what will follow in the future.
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