How Much Are Twitter's Tweets Really Worth?

Google and Microsoft are paying Twitter $25 million to crawl the short posts, or tweets, that users send out on the micro-blogging service. It sounds like big money. Enough for Twitter to turn a small profit in 2009, say two people familiar with the company's finances. But do the math and the payments look less impressive. Last year, Twitter's 50 million users posted 8 billion tweets, according to research firm Synopsos, which means Google and Microsoft are paying roughly 3¢ for every 1,000 tweets. That's a pittance in the world of online advertising. Top media sites often get $10 or $20 per thousand page views; even remnant inventory, leftover Web pages that get sold through ad networks, goes for 50¢ to $1 per thousand. The deals put "almost no value" on Twitter's data, says Donnovan Andrews, vice-president of strategic development for the digital marketing agency Tribal Fusion. Truth is, no one has figured out how to make real money off of tweets yet.