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Ads on Blogs

Posted on Sunday, Apr 13th 2008

Steve Hodson says, “Advertising for bloggers has to change.” There are a number of Ad Networks that are trying to address the issues he raises. I am anxious to see how this plays out. I am now on Forbes, IDG, Washington Post and TheDeal (all powered by Adify, all business blog networks).

Forbes is actually launching tomorrow. IDG’s TechDispenser network has been alive for a while. But both networks are in the midst of hiring new executives and account managers, and expect that they would start to show real $$$ later this year / next year. Adify executives say that it takes 9-18 months to ramp a network, so this year will still be for the networks to “learn” how to do this right.

The networks, I am afraid, have a LOT to learn. At this point, they are pretty clueless about how to use their chips, including traffic, brand, and ad sales forces. They don’t really understand how to use links, they don’t know how to sell high CPM ads, and they don’t know how to converse with the blogosphere effectively.

I think, the game will get interesting next year, if we give them somewhat of a long leash to go figure this game out.

Related reading from the Deal Radar 2008 Series: Federated Media, Adify, TechCrunch, GigaOm, Glam Media, and Seeking Alpha.

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Adsense is ripe to be disrupted. It is designed to monetize crap and, surprisingly for Google, is not transparent in regards to the revenue split. Google is supposed to make advertizing more accountable but its lack of transparency is against their core value proposition.

I suspect they keep most of the revenue and their margins can only go down if some good alternatives for high value content take shape. If this happen their stocks will crash. This is their achilles heel. In fact, this is one area Yahoo and MS should target to catch up with Google.

Dasher Sunday, April 13, 2008 at 2:16 PM PT

I Second Dashier. I wonder whats keeping yahoo from going international with its YPN thats currently into beta stage.

The webmaster community seems to be absolutely ready for it. < refer forums.digitalpoint.com > .

I wish they go live soon enough else people will forget it even existed.

Kartik Sunday, April 13, 2008 at 2:52 PM PT

I have been a part of Adify (WP, IDG and now Forbes) since some time now and use it along with AdSense on my blog.

The CPM rates offered by Adify can sometimes be higher than what AdSense offers but an important point is that Adify ads are almost always geographically targeted – so its tough to monetize international traffic with Adify.

AdSense on the other hand has advertisers will to show ads in almost every part of the world.

Adify recently revamped their site and more changes are in the pipeline so ad management is easy but at the same time, they also need to streamline their payment process.

Amit Agarwal Sunday, April 13, 2008 at 7:54 PM PT