Blogging Networks Feeling The Economic Pain

headache.jpgI have been following the story of Pajamas Media and the closing of their ad network operations as of April 1. This is not earth shattering news as we see the boom days of blog earnings begin to buckle under the economy and crash on the rocks caused by the storm. We have seen other networks close and cut back and have similar problems. As companies cut back on their ad spends it stands to reason that these forms of revenue will dry up or become scarce. i think this is not going to end any time soon.

One of the reasons ad networks were so powerful before was because they could leverage large page views and could funnel the eyeballs into one place better than companies looking to buy up ad space on single blogs. That trend has changed now as properties that have large followings have figured out how to leverage and negotiate their own advertising deals cutting out the middle man. The smaller single manned blogs are also more flexible and don’t need quite the investment to turn a profit. We are seeing a definite shift in the blogosphere and that shift will continue to transmogrify into a new model that is hopefully better.

I intend to discuss this further on my radio show on Tuesday. I want to have a few or the blogging experts weigh in on this as well as discuss my ideas further. Join me on Tuesday at 5 p.m. PST as I discuss ad revenue and blog networks further.

[Headache photo via pvera]

Comments

  1. Luckily, our network is holding up quite well with no problems or issues at all in the advertising area. Hopefully it keeps up ;)

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