With certain bloggers and blog networks learning how to get large audiences, they are beginning to experiment with ways to monetize their growing networks.
As a result, advertisers are taking notice and are looking past traditional media outlets to tap into the distinctive strength they have to offer.
Blogs can draw legions of fans to their content, and as a result of advice given, or products or services that are recommended and sought for by their readers, companies are increasingly looking to them to offer their wares.
One of the keys to the draw of advertisers to blogging is that the bloggers are usually passionate believers in something and write about it to other passionate people. The result is that they represent the type of people that are able to spread news to growing audiences. The viral effect can be explosive. Thom Campbell, head of media strategy for Intel (who now runs all of its ads on blogs and regular outlets) said, "The audience on blogs is the cream of the crop."
This is more important to hear than we may know. If an executive at Intel (INTC) is seeing this, than many others have to be too.
Remember that the strength of the Internet and its appeal is to find the influencers, and then they will spread your message. Blogs are written, in many cases, by the influencers. Build one that attracts fans to it, and advertisers will follow.
The main thing to realize in blogging is that it must be taken up with the long-term in view. While advertising is growing on blog sites, it is at only $40 million for the year. The good news is that they are just beginning to be noticed by marketers, and it is twice as much as last years total. Online advertising spend is expected to reach about $23.6 billion by 2010, a portion of that will be targeted to blogs. So there is great potential if you stick with it.
At this time the great majority of blogs are monetized through advertising. Because of that it will be subject to the same market downturns that affect any ad market. That, and potential growing numbers of bloggers entering the field, could put pressure on profits, like any competitor could.
Bloggers, like any successful person in business, will need to diversify to spread the risks, and not count on only one advertising source for their income.
Another point to keep in mind is that companies are looking for targeted audiences to offer their products to. Don't think that you can't land deals with big companies if you don't have as much traffic as the big guys. Depending on the topic you're writing on, it could be just what companies are looking for: especially if the subject is unique or concerning luxury items.
You may be able to get quite high prices with these companies, so don't be tempted to always undercharge just to get business. Again, it depends upon the particular niche your reporting on.
Even if there is advertising downturn in the future, online advertising spend will grow exponentially for years. Don't hesitate to use blogging as one of your online strategies to build a great business. It is only just beginning to be noticed by those looking for new ways to offer their products.
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