Yahoo! wants in on Twitter: No money involved

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Yahoo! (YHOO) is the latest company that wants to optimize its search results for Twitter. This follows moves by Microsoft (MSFT) and Google (GOOG) to integrate Twitter data into their search results. Unlike its competitors, however, Yahoo! wants to do this without spending a dime (well, without giving a dime to the hot new social media platform).

Twitter's microblogging service has become famous not only for its rapid growth but also because it's found no way to turn it into revenue. Its recent discussions with Microsoft and Google demonstrated that Twitter can indeed bring in some cash -- by licensing its data for use in fine-tuning search engines. With two of the top search engines now optimizing for Twitter, it was only a matter of time before Yahoo! would rush to join the party.

But, that's not enough for Yahoo! The number two search engine wants to be the first to integrate tweets into the main body of its search results. Microsoft lists Twitter results in a special section of the results page, and Google has yet to take action or explain what it will do.

For Yahoo!, there's little choice involved in trying to get ahead in this part of the search engine market. The company has been in a tough spot for the past three years, largely because Google has taken a firm hold of a strong majority of the Internet search market.

Yahoo!'s plan for implementing Twitter-inclusive search is intended to highlight major trends based on the Twitter-stream. The search results page will be revamped to show four tabs: direct links to news sites, photos, video and one dedicated to Twitter. Click the Twitter tab, and you'll find real-time search results based on tweets.

Interestingly, priority will be assigned to certain users. Twitter streams from major media outlets, for example, will be targeted by the search engine, though other links will come from regular Twitter users. Unlike the Twitter search feature, which operates chronologically, Yahoo! will use its own technology, which will attempt to identify the tweets most relevant to a user's search, regardless of when it was created.

Unlike its competitors, Yahoo! is using free tools to access Twitter data, which means it won't need to pay for the fruits of its efforts. While Microsoft and Google haven't indicated how much they're shelling out for access to Twitter data, it seems safe to assume that it isn't as cheap as free.

With close to 60 million users around the world, according to data from comScore, and a strong growth trajectory, there's a lot at stake in winning the battle for Twitter search results. Microsoft may have been first out of the gate, but we'll need to see Twitter-search-integration 2.0, at least, to determine a near-term winner.

So, what happens if Yahoo! wins this race? Well, it has a shot at recapturing some of its market share ... and it will help Twitter, which seems intent on not generating any revenue, to stay that way.

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Last updated: February 09, 2010: 08:08 AM

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