Blogonomics: The Economics of Blog Ad Networks
 
June 06, 2005
Copyright Mediaware Infotech Pvt. Ltd.
 

Web-logging sites or blogs are among the few intimate, authentic spaces left on the Internet. This is because most blogs are high traffic web-sites which are run by intellectuals, making web blogs the melting pots of influential opinions. Since a few months ago, there has been a concerted move to sell ad space on blog sites. Will the impending commercialization of blogs change their very character?

Blog Ad Networks
It is the blogs' ability to break through the Internet's humungous clutter (while taking advantage of the faster-than-thought speed of Internet communication) that make them especially attractive for advertisers. But paradoxically, it is the lack of commercials that are responsible for the unique character of blogs.

Touted as a unique vehicle for advertising & promotion, blog ads - the merger of 2 powerful communications tools - advertising and blogs - may be as much a commercial opportunity as they are a threat to the 'free' characteristic of blogs.

Blog ad networks are attempting to put a value to the large traffic blogs by banding together individual blog sites for common ad sales marketing.

                                                                       Blog Statistics

Seventy participants of Gulf-War blog www.commandpost.org posted around 1400 links everyday, round the clock at the height of Iraq war.

Blog-Ads is one of the first blog ad serving networks which has spawned sub-networks for law, music,etc.

Earvolution.com has banded together a network of independent music blogs (under Blog-Ads) - whose monthly page-views/readers compare well with major music magazine sites like www.rollingstone.com www.spinmagazine.com.

"Wired" Co-Founder John Battele has announced plans to launch Federated Media Publishing - an advertising network for technology-related web blogging sites.

Networked Blogs
Blog-Ads, one of the first blog-ad serving networks has already organized groups of blogs into sub-networks, each focused on topics like left-wing politics, music, New York City, law, baseball, gay issues & gossip. These groups are offered to advertisers for a full/partial network buy - much like traditional television networks.

Given the propensity of ad networks to over-sell ad space for additional revenue, it is a clear possibility, that blogs may soon be flooded with ads & commercials!

The basic reason why blogs are so influential is because traditional media has "become a part of the establishment", whereas blogs are considered as "anti-establishment". The typical blogger is a self-motivated, hyper-communicator, who wants to spread new ideas across the globe, via the Internet. Thus each successful blog builds a community of readers who become part of a clan. And it is this clannish base of most blog readers that may be adversely affected by un-controlled advertisements.

The Final Word
Blog Ad Networks essentially put a price to the high traffic that blog sites can deliver to the advertiser. While this may be more acceptable in some cases (e.g. music blogs), there is a danger for the more serious genre of blogs. In trying to compensate bloggers (and themselves!), blog advtg networks may adversely affect their essential characteristic. Ultimately, destroying the differentiating factor between blog sites and other traditional media.

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