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Monetizing Blogs via Ad Networks

Posted on Monday, May 14th 2007

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.

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Comments

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.

Tom Foremski Sunday, May 20, 2007 at 3:05 PM PT

What is the trend, Tom?

Sramana Mitra Sunday, May 20, 2007 at 3:08 PM PT

[…] In a timely post, Sramana Mitra delves into advances in online advertising networks. Now, the reason I am so excited about […]

Chronicle Does Irony : Venture Chronicles Sunday, May 20, 2007 at 11:31 PM PT

[…] 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. […]

Sramana Mitra on Strategy » Blog Archive » Ask to Compete with Google AdSense? Friday, May 25, 2007 at 6:12 AM PT

[…] 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. […]

Sramana Mitra on Strategy » Blog Archive » Ask to Compete with Google AdSense? Friday, May 25, 2007 at 6:12 AM PT

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!

Mackenzie Sunday, July 22, 2007 at 7:27 PM PT

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

Sramana Mitra Monday, July 23, 2007 at 11:53 AM PT

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 https://zigazoga.typepad.com and my other company blog is at https://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

Jason Cronkhite Thursday, August 23, 2007 at 2:50 PM PT

Hi people

As a fresh http://www.sramanamitra.com user i just wanted to say hello to everyone else who uses this bbs B-)

Loronosmolo Thursday, December 18, 2008 at 6:27 PM PT

i was highly addicted to poker machines and fruit machines for a long number of years. if i can put that addictive pattern or process on paper that may help stimulate the “edutainment software dream team”. i know that endomorphines play a major role. we need to hurry. i am in nashville, tennessee. our present mayor and our state government are threatning to take our public education system over. they are as unknowledgeable as our current board and teachers are as well as the federal programmers of “no child left behind”. whatever i can do to assist, i am willing to give it my best shot. i am ruckersandra@bellsouth.net

sanrucker Friday, December 19, 2008 at 5:20 AM PT