Twitter IPO May Hinge on Location-based Data Mining
The Wall Street Journal reported today about Twitter's data mining business, a rather small proportion of their revenue compared with potential advertising dollars. However the impact of their data business, which grew 53% last year according to Security and Exchange Commission filings for its initial public offering (IPO) could be significant. As more companies look to utilize Twitter to understand customer sentiment for marketing campaigns and others see the more real-time aspects to project the impact on finanical markets, the value of the company's data could grow over the long term. While many individuals have used TweepsMap to map their followers using the location-based component of tweets, data mining companies are using the Twitter firehose to model and extract social media information for business intelligence applications. Resellers of the Twitter firehose data include Gnip and Datasift. According the the Journal article:
Each social-data firm boasts proprietary dating-mining tools that go beyond basic keyword searches. Some can zoom in on a subset of people—say, women in a certain ZIP Code—and monitor phrases that show emotion. Then they can create a heat map or a sentiment score that measures how that subset feels about a topic.
While Twitter's revenue from their data was only $47.5 Million last year, big data is here and they are a primary source of information that continues to grow and be used in a variety of location-based applications.