Monetizing Blogs via Ad Networks
We have spent a few weeks discussing online advertising and ad networks with the CEO of Adify. In this post, let’s take a look at how blogs would be able to leverage quality ad networks.
Today, the notion of ‘A-List’ bloggers depends on 2 things: (a) Traffic (b) Content. Often, you find blogs with high quality content languish lower down in the Alexa or Technorati rankings, because the authors are not necessarily investing energy in Digg, Del.icio.us, Reddit, and other traffic driver sites. Nonetheless, it is still a combination of the two that would get you to the stature of an A-List blog.
You need that stature to get an Ad Network like FM Publishing, Travel Ad Network, etc. to represent you, and by gaining that representation, you will start being able to access the high CPM advertising inventory.
Now, the reason I am so excited about technology players like Adify, is that they will hasten the move of old media players like Time Warner into the Ad Network business, which has so far been a duopoly dominated by Google Adsense and Yahoo Publishers Network, with a few smaller new entrants.
Let’s take the example of Time Warner’s new Sports Ad Network being launched with Adify and Sports Illustrated. Hundreds and thousands of high quality Sports bloggers all over the world would now be able to access (a) Audience / Traffic (b) Higher CPM Ad Inventory from large scale branding campaigns because of this network, and can focus exclusively on producing quality content, without having to “Digg” around.
Computerworld is also launching a similar ad network with Adify focused on a technology (IT) audience, which is their core competency, and numerous technology bloggers would now be able to monetize their blogs via this network, as well as expand their reach into a targeted audience.
Below is a chart calculating some numbers for Publishers / Bloggers, as well as for Ad Networks, using the example of 3 segments: Travel, Technology, and Business. Based on these numbers, my conclusion is that if a publisher has quality content, and can make it into the right Ad Network, the business model certainly supports viable monetization and sustainability.
Of course, this is all predicated upon the fact that the Ad Network is of the caliber of WSJ, Business Week, CNN Money (Business), National Geographic, Travel & Leisure (Travel), and CNet, ComputerWorld, PC Magazine, etc. (Technology). If Adify can bring these networks to bear, then this would be the path to salvation for many vertical publishers.
There are a lot of “ifs” here. It still looks to me that the publisher isn’t getting enough of the deal. And, this supposes that pageviews are the way publishers will get paid, and that is not the trend.
What is the trend, Tom?
[…] In a timely post, Sramana Mitra delves into advances in online advertising networks. Now, the reason I am so excited about […]
[…] You just touched my favorite topic, Josh. I wrote Giving Up on AdSense earlier, and have been on a quest for alternatives … Adify looks promising. My guess is, Time Warner will come up with an Ad Network, and will establish relationships with good bloggers. […]
[…] You just touched my favorite topic, Josh. I wrote Giving Up on AdSense earlier, and have been on a quest for alternatives … Adify looks promising. My guess is, Time Warner will come up with an Ad Network, and will establish relationships with good bloggers. […]
Thanks for the article, those numbers are amazinga. Where did you find that data? Gaining quality Ad networks has always been a daunting idea for me. I know it is important in order to leverage your blog and create revenue, but do you think it would be possible to a aquire quality ad networks for a niche site that is of good quality but does not get as much traffic? I am going ot this free conference o Postiecon in vegas to learn more about monetizing blogs successfully, you should check it out it might be something you would be interested in. Thanks again for the article!
Hi there,
It all depends on how valued your audience is by potential advertisers.
The numbers in the article are all my own assessments.
Sramana
Hello to everyone in this conversation. I’m looking for some technical know-how books, forums or blogs that can help me increase traffic and visibility with all the various tools that are out there today and I’d love to hear from you. I’ve read Scoble’s book and a few others but information changes so fast and I’m constantly learning new things however; blogging as you all know takes work. My blog is at http://zigazoga.typepad.com and my other company blog is at http://www.kulabyte.com/weblog and you can email me directly at jcronkhite at zigazoga dot com.
Great post Sramana! I found you via facebook new tee vee group btw. Cheers, Jason