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July 23, 2007

Using Blogs for Online Advertising

The market for paid blogging has been receiving much attention recently. Services like PayPerPost have created an unprecedented business model which connects advertisers with bloggers. Advertisers gain publicity and traffic while improving their rankings with the search engines. Bloggers also receive an opportunity to generate revenue from their Web site.

Paid blogging delivers online word of mouth marketing, brand awareness and traffic leads for the advertiser. Companies like PayPerPost provide advertisers with a way to promote their Web site, products, services or company through a network of independent bloggers. Companies can team up with bloggers to generate buzz, build traffic, and receive product feedback, as well as gain links, syndicate content and much more all in an effort to improve their internet marketing plan.

In a staff opinion issued by the Federal Trade Commission, the consumer protection agency discussed the practice. Though no accurate figures exist on how much money advertisers spend on paid blogging, it is quickly becoming a preferred method for reaching consumers who are skeptical of other forms of advertising.

The FTC proposed that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.

I can’t seem to wrap my head around that line of thinking. Why should bloggers be required to disclose whether they have been paid to post about the company or not?

When we see the contestants on Survivor winning rewards such as a cold Mountain Dew or a Pontiac Aztec, do we assume it’s because Mark Burnett actually prefers Mountain Dew over Coca-Cola and Pontiacs over Fords? When Red Beard at Lone Star 92.5 radio suggests drinking an ice cold Coors Light, do we assume he personally prefers Coors Light over say a Heineken or Shiner Bock? Not I. I know that this is product placement and they are being compensated by those companies to have their products shown or spoken of without them having to tell me so.

Even if paid bloggers must include a disclosure, I see paid blogging from an advertisers stand point to be a wonderful internet marketing solution. You can determine how much you are willing to pay, how many different posts you want as well as requiring the blogger to link to your Web site using your chosen keywords.

When comparing paid blogging to something like Yahoo’s Directory listing which costs $299 to submit and $299 annually I find paid blogging to not only be a bargain, but much more beneficial to the advertiser as well.


1 comment:

Milan said...

In short term, paid blogging would be nice concept, but not for long term. Because paid Blogging would help out bloggers to generate revenue only, while blogger blended with bidvertiser gives both traffic and revenue.