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December 06, 2004

Finally, The Chance of Some Crazy Blog-Money

Interesting piece about blogonomics, but only if you're a blogger, I guess:

The Business Of Blogging Explosive growth means Web logs are suddenly in Madison Avenue's sights

Just a year ago, blogs were viewed as a collection of off-the-cuff ramblings in cyberspace read mainly by online devotees. Then, as the election season heated up, bloggers gained new prominence, writing up-to-the-minute news and politics nuggets that the mainstream media struggled to match. Suddenly, millions of Americans were turning to political blogs such as instapundit.com and journalist Andrew Sullivan's Daily Dish. And blogs about everything from art-world gossip to macroeconomics are drawing audiences, too. A new medium, though still a work in progress, is coming into being.

Now advertisers are realizing there is a market emerging in the blogosphere. Already, the growth in regular online advertising, estimated to be about 35% this year, will far outpace the spending increases for any other sector of the media world. Add to all this the fact that about 11% of Internet users today are inveterate blog readers, and the blogging scene starts to get mighty compelling for marketers.

Don't expect a repeat of the dot-com rush that inflated the Web bubble of the late 1990s. "This is a long game, with lots of ebbs and flows," says Henry Copeland, founder of media-buying firm BlogAds. Blogging isn't about to lead to vast wealth anytime soon, says Copeland, but he does expect "more money to [flow to] more authors as smart advertisers bypass publishers and pay authors directly for their audiences." BlogAds is placing ads on 50 to 100 blogs a day for up to 20 advertisers, including Sharp Electronics Corp. and Walt Disney Co. Just six months ago, the firm served 20 blogs for about 10 advertisers.


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posted by Ace at 02:16 PM

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