At the Ref Desk (5/22/18): Got an IM request explaining in great detail (several sentences in fact) what kind of article the person was looking for. Only thing missing -- the topic. Oh well... [more...]

Betting on the Real-Time Web

Submitted by Leo Klein on Sat, 8/29/09 (7:43pm)
Pub Date: 
08/06/2009
Author: 
Source: 

No one knows how the microblogging site and similar online social networks will make money, but investors see a new Web revolution

John Borthwick speaks softly, but he can't hide his excitement. Co-founder and chief executive of the New York Internet media incubator betaworks, Borthwick is an investor in the microblogging phenomenon Twitter, where people exchange short public messages called tweets. Betaworks is also building or investing in at least 21 other companies mining the "real-time Web." That's the term coined to describe the exploding number of live social activities online, from tweets to status updates on Facebook to the sharing of news, Web links, and videos on myriad other sites. "It's a whole new layer of innovation that's opening up on the Web," he says.

It's also a whole new field of dreams for entrepreneurs and investors. Amid the downsized remains of Web 2.0, with online advertising and e-commerce in a drought, they're viewing the real-time Web as the Internet's Next Big Thing—maybe even the source of the next Google (GOOG). The emerging sector is so new, and its boundaries so fuzzy, that it's difficult to know how much money has been sunk into how many firms. But many dozens of startups are staking claims and drawing interest from investors.

....

In just the past couple of years, several developments have come together to make the Web more of a real-time experience: ubiquitous high-speed Internet connections; a growing number of mobile devices such as the iPhone with full Web browsers; and new Web technologies that enable instant transmission of messages and data. That mix has made always-on, real-time communications easy and addictive. The iconic example, Twitter, attracted 44.5 million people to its Web site in June, plus perhaps an equivalent number who gain access to its services via other sites and software. Facebook's 250 million active users, whose instant status updates are a key part of its appeal, share more than 1 billion videos, photos, and other content each week.

"Real-time" is actually a bit of a misnomer. Most of this activity doesn't truly occur in real time, the way talking on the phone does, and social gestures such as sharing links with friends are just as important a part of the appeal as immediacy. These gestures—often accompanied by data from people's profiles on social networks, such as where they live or their age—hold the key to the real-time Web's moneymaking potential. What people are tweeting and sharing could be a potent indicator of their interests and intentions: When people type in a response to Twitter's home-page question "What are you doing?" their answers also may reveal what they want to buy—right now.

This is an entirely new body of data from sources outside the search engines and more static sites that have dominated the Web. That's why the real-time Web presents a big challenge to some Internet leaders—especially Google. Real-time streams are slippery for its computers to track. Google algorithms favor sites that attract many links from other sites, a proxy for importance. But such links can take days or weeks to build. Google has increased how often it indexes leading real-time sites, and Twitter activity is showing up more often in search results. But because Facebook and Twitter keep much of the data on this activity private, search engines can't index it all.