After witnessing the social media reactions to events like the Golden Globes and Super Bowl, Twitter has made a decision. That decision is that from now on they are going to make themselves some extra bank out of these hugely popular events. How will they do this? The answer is simple – they have purchased the Cambridge social media start-up, Bluefin Labs. At a cost of a reported $100 million this purchase will allow Twitter access to the analytical power offered by this social media tracking company.
So, how does Twitter make money from this? Again the answer is simple – they sell the data collected from analyzing users Tweets to businesses. These businesses can then use the data to judge if their advertising is working or in which direction their promotional efforts should be heading. It is likely to be a really profitable cash cow for Twitter whose users really love to comment on TV events.