Search and Social: How Apple Might Utilize Its $200 Million Topsy Purchase

topsyFollowing Apple's $200 million purchase of social analytics firm Topsy earlier this week, a wide variety of analysts and pundits have been considering what Apple might do with the company.

More than anything, Topsy is a search and analytics company, holding a number of search-related patents that could be implemented directly into the App or iTunes Stores to improve searches and discovery. One patent helps rank search results based on reputation and influence, which could be used to help higher quality apps rise to the top of App Store search results, for example.

Another patent details the return of search results to include popular items related to a specific query on a social media site. While not directly related, a similar technology could be incorporated into App Store search. For example, a user searching for Major League Baseball apps could be linked to other trending sports apps for the NFL or NBA.

Twitter considered buying Topsy as well because, according to AllThingsD, "Topsy’s search technology and tools were even more effective than Twitter’s own in-house search tools" but Twitter ultimately decided to pass on the purchase.

Apple has purchased companies in the past to boost its search results on the App Store, most notably Chomp, acquired by the company last year.

Apple has also been focusing on increasing its advertising revenue in recent years, first with iAd's in-app advertising, and more recently with iTunes Radio. Another Topsy patent relates to the display of certain advertisements to users based on an "influence score" that helps determine which advertisements are shown to a particular user.

As for what Apple will do with Topsy, TechCrunch's Matthew Panzarino is thinking along these same lines.

If I had to hazard a guess, this might be related to Apple building out the relevancy engine of its App and iTunes Stores. Adding social signals to the search algorithms of its stores could help to improve the relevance of search results and help Apple surface apps that are hotter and more interesting to users. Tracking app trends across social networks would allow them to fine tune categories and collections of apps, and surface apps that are gaining steam more quickly.

Pulling the thread out a bit further, it's possible that Apple could even use the data from your Twitter feeds to recommend apps on a more personal basis, rather than ‘generically' to everyone. Apple has done little of this kind of personalized recommendation work to this point, but there's always a first time for everything.

The Wall Street Journal concurs, saying that "Topsy's insights could be useful in several Apple services, including the iTunes media store, Siri voice assistant or iAd advertising platform."

Another pundit, Azeem Azhar, argued on LinkedIn that Topsy's search platform could be part of the foundation for an Apple move against Google in search. The company already built a mapping app, displacing Google Maps in one of the iPhone's most fundamental features -- and an investment in search could be a logical place to spend some of Apple's enormous cash pile.

Wouldn't it be smart for Apple to deploy Topsy's search infrastructure as the search layer for iOS? Working to index both the social Web, but also the best bits of the Web that power Siri and Apple Maps, reduce the reliance on Google and reduce the flow of advertising dollars to the big G.

[...]

These are additional signals that could make the experience of search on iOS really different to the experience on Google. A search which encapsulates data on the web, databases of businesses, real, fresh social signals and purchase preference data from 900m consumers. All accessible from my iOS device, connected back to my Apple ID (and the credit card attached to it).

Topsy has full access to the Twitter 'firehose', meaning its technology can be used to deal with enormous amounts of data and its search engine technology is designed specifically for that. It's possible that Topsy's search engine could be used by Apple for more than just search, however. The company could combine iCloud, App Store purchase data, reviews, social network activity and more to get a better idea of their customer's activity for both advertising and search purposes.

While the purchase of Topsy is notable, the $200 million acquisition accounts for some 1/750th of Apple's current $150 billion in cash and will likely be the one of many acquisitions that Apple makes during fiscal 2014.

Last year, in fiscal 2013, Apple made a total of 15 acquisitions of varying sizes over the course of the year. In its public financial calls with analysts, Apple executives have repeatedly said that a number of new hardware, software and services products are in its pipeline for release in calendar 2014 and beyond.

Popular Stories

Alleged iOS 19 Icons Front Page Tech

iOS 19 Leak Reveals Alleged New Design With Rounder App Icons, Floating Tab Bar, and More

Monday April 7, 2025 3:13 pm PDT by
YouTube channel Front Page Tech is back today with another video that provides a closer look at iOS 19's alleged design changes. The video contains re-created renders of iOS 19, which are allegedly based on real footage of the software update, provided by sources within Apple. Overall, iOS 19 is expected to have a more glass-like, visionOS-inspired design, with added translucency for user...
iphone 16 pro colors 1

Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?

Friday April 4, 2025 3:41 pm PDT by
If you have an older Apple device that you've been considering upgrading, you're probably wondering how the newly announced tariffs might impact prices going forward, and whether it's worth buying now before there's a price hike. Given analyst and economist responses to the tariffs, market panic, and Trump's stance on the current financial chaos, the answer is that making a purchase...
2024 iPhone Boxes Feature

iPhones Could Cost Up to $2,300 in the U.S. Due to Tariffs, Analyst Says

Friday April 4, 2025 9:30 am PDT by
U.S. President Donald Trump on Wednesday announced that steep tariffs will be applied to imports from many countries, starting April 9. The tariffs could have a significant impact on Apple, as the company assembles the majority of iPhones in China, and products imported to the U.S. from China will be subject to a 54% tariff. iPhone prices could increase by up to 43% in the U.S. due to the...
iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

iPhone 17 Pro's New Rear Camera Bar 'Same Color As Rest of Device'

Monday April 7, 2025 2:09 am PDT by
Apple's upcoming iPhone 17 Pro models will feature a redesigned rear camera panel that spans the width of the device, but it will be the same color as the iPhone itself, rather than being part of a two-tone design. That's according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, the reporter says the iPhone 17 Pro won't have a two-toned back, as some renders have...
iOS 19 Mock WWDC25 Feature

iOS 19 Expected to Run on These iPhones

Monday March 31, 2025 5:28 pm PDT by
iOS 19 will not be available on the iPhone XR, iPhone XS, or the iPhone XS Max, according a private account on social media site X that has accurately provided information on device compatibility in the past. The iPhone XR, iPhone XS, and iPhone XS Max all have an A12 Bionic chip, so it looks like iOS 19 will discontinue support for that chip. All other iPhones that run iOS 18 are expected...
iphone x front back

Apple Planning 'Bold' New 20th Anniversary Design for 2027 iPhone Pro

Monday April 7, 2025 2:46 am PDT by
Apple is preparing a "major shake-up" for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. iPhone X released in 2017 for 10th anniversary Writing in his latest Power On newsletter, Gurman says that Apple plans to launch a foldable iPhone alongside a "bold" new iPhone Pro model that makes more extensive use of glass. Could this mean Apple plans to realize former...
top stories 2025 04 05

Top Stories: iOS 18.4 Released, New AirPods Max Features, and More

Saturday April 5, 2025 6:00 am PDT by
We're just two months away from WWDC where we'll get our first glimpses of iOS 19 and related updates, but this week saw the public release of iOS 18.4 with a number of changes and improvements including some audio improvements for the USB-C AirPods Max. This week also saw the first beta of iOS 18.5, a new rumor about iOS 19 compatibility, and Apple's work on haptic buttons that have yet to...

Top Rated Comments

ForzaJuve Avatar
148 months ago
They could generate even more.

Give this guy a job at Apple immediately!
Score: 5 Votes (Like | Disagree)
Klae17 Avatar
148 months ago
They keep buying companies to improve the App Store and iTunes, yet both are still s***.
Score: 5 Votes (Like | Disagree)
jeffzoom91 Avatar
148 months ago
I always get a little shiver when Apple does cool Computer Science-y stuff...

GCD, Timer Coalescing, Co-Processors, real asymmetric finger print security...all awesome stuff.

Chances are, they're going to do something cool with it, and we won't even notice it happening.
Score: 3 Votes (Like | Disagree)
Klae17 Avatar
148 months ago
both generate tons of money.

They could generate even more.
Score: 2 Votes (Like | Disagree)
numlock Avatar
148 months ago
both generate tons of money.

hardly the definition if something is **** or not

What are the chances that Apples eventually buys Twitter? I mean someone is going to buy Twitter sooner or later. I think it would be a great move for Apple to make, they would get more involved into the social media while also delivering a blow to Google. Eventually all these small tech companies are going to be bought or put out of business by Apple or Google.

thats a pretty bleak view of the future (not that i disagree)
Score: 1 Votes (Like | Disagree)
willcapellaro Avatar
148 months ago
How are they ****?

To start with, misspell anything and intended search results will not show. That's a pretty rookie mistake on their part.
Score: 1 Votes (Like | Disagree)