Caroline McCarthy at News.com's The Social blog reports that the CBS Television Network is launching a program that will have local bloggers installing CBS News widgets in exchange for revenues. The CBS Local Ad Network is being managed by a company called Syndigo. One blog already approved for the CBS widget advertising plan is SFBayStyle - you can see the widget on the right side of the blog.
On Monday, the program was launched in a selection of the TV network's regional markets: Boston, Dallas-Fort Worth, San Francisco, Denver, and Chicago. Within the next few weeks, CBS has said, the CBS Local Ad Network will come to New York, Los Angeles, Philadelphia, Minneapolis-St. Paul, Miami, Sacramento, Pittsburgh, and Baltimore.
Some of the blogs currently participating in the new program are San Francisco's SFBayStyle and Boston's Red Sox Nation. Approved sites will be able to choose the content of the CBS headlines displayed (breaking news, sports, politics), as well as select from a number of options to determine, for example, whether they want video content in the widget.
Bloggers can't just embed a widget and hope for profits, CBS Television Stations Digital Media Group president Jonathan Leess told CNET News.com. "There's a screening process, obviously," he said. "We have to figure out or get some visibility into what the content is on that site, and then we screen, but we have a third party (Syndigo Networks) that administers all this for us."
CBS declined to share exact breakdowns of the revenue-distribution process. "All of it's based on certain traffic estimates from each of the sites, and (ad) placement," Leess said.
Paid Content says no payments will be made until over $50 are earned by the partner.
Payment is 45 days after the calendar month; payments that don't exceed $50 will roll over until they do. The contract runs one year. As far as I can tell-and I may be missing something in the fine print-members have to sign up before they are told the rev share amount.
Turning local bloggers into affiliates is a smart move. This is the kind of idea that could also motivate others to launch local blogs and generate a local blog boom. It may not necessarily be this exact program from CBS that ignites a local blog boom but the news networks do have some potential here to use blogs to spread their brand. The program that succeeds will be the one that bloggers can build a business around.
Google AdSense - an advertising vehicle used by many bloggers - is updating its terms and conditions for publishers using Google AdSense. A post on the Google AdSense blog says the changes have to do with future products - that may be priced, paid, or managed differently than current products - and with privacy requirements - that punlishers notify their users of the use of cookies and/or web beacons.
This time around, most of the changes to the Terms and Conditions fall into two broad categories: 1) future products and features and 2) privacy requirements. Specifically, one of the main changes is that the terms anticipate future products that may become available in other advertising formats and mediums, for example Gadget Ads. As we look forward to monetizing more online and offline content, we've re-worded some portions of the terms to make them applicable across a broader array of media and formats -- anticipating, for example, that future products may be priced, paid, or managed differently than current ones.
We've also added some specific requirements that make it necessary for publishers to post and abide by a transparent privacy policy that users see. According to this policy, publishers must notify their users of the use of cookies and/or web beacons to collect data in the ad serving process. This change relates to advertisers' use of innovative products and features like Gadget Ads and other offerings in the future.
The AdSense also says Google has made "made small changes throughout" the terms and services so be sure to read the entire revised document. Publishers will see the new terms will they try to login to Google Adsense. Publishers have until May 25, 2008 to accept the new terms.
The New York Timesreports on Google's clever plans to turn its very popular YouTube video sharing service into a video syndication service.
The Internet search giant is expected to introduce a service on Tuesday to allow Web sites in its ad network to embed relevant videos from some YouTube content creators. A Web site or blog specializing in hiking, for instance, might choose to embed hiking videos from YouTube.
The service, which represents the first major combination of a Google product with YouTube, will give video creators wide distribution beyond YouTube via Google's network, known as AdSense. Since the videos will be surrounded by ads, the service is another way for Google to cash in on the huge number of video clips stored on YouTube.
Several other networks distribute videos and ads on the Web, but none reach as many Web sites as AdSense.
Google said it would share revenue from the ads with the creators of the videos and with the Web sites that embed them, though it declined to specify what percentage of the revenue will be kept by each party.
If the television networks aren't going to turn website into syndication channels Google will it seems. For now these are generally just very short video clips but in the future full television shows could be syndicated in a similar manner.
Google has an introductory post about the new video units here. There is also a faq. The faq says the ads in the video units will be both pay-per-click and CPM based. It says reporting will be different for these ads than other AdSense ads. Website owners can select video content by selecting specific categories or by choosing a specific provider.
This will be a big deal for video publishers. Google says AdSense publishers can select specific providers so video publishers will be trying to get AdSense users to syndicate their videos. NewTeeVee has a short list of who some of the early video content providers are.
Read/WriteWeb says Google is expected to expand the number of video providers -- currently only a few YouTube user channels are being syndicated.
Ads have been run along side a very select few user channels on the YouTube site for a handful of months but these reports indicate that the program will be made much wider and be taken off of the site all around the web.
Here is an explanatory video from Google about their video units.
Paula Neal Mooney has a big list the includes the earnings of a number of bloggers. You probably saw the USA Todayarticle describing how tech bloggers Michael Arrington (TechCrunch) and Om Malik (GigaOm) have built businesses out of their blogs. If you are curious about what other bloggers make you should check out Paula's list of blogger pay.
The list isn't all-inclusive. For example, you will find Michael Arrington on Paula's list (it says he makes $1.8 million in ad revenue annually) but you won't find the blog-related income for Om Malik or Michelle Malkin. However, the list does provide the earnings for a wide range of bloggers from Mario Lavandeira (PerezHilton.com) who makes $468,000 - $832,000 to Lucia Liljegren (The Knitting Fiend) who makes about $3,000 a year from Google ads. Some of the annual blog earnings for other bloggers on the list include Darren Rowse ($360,000 or more), John Chow ($126,712), Randy Brown Grown Up Geek ($75,492), Thilak Raj Rao: Tech Buzz and Blog Talks ($36,735) and Matt Coddington: Net Business Blog ($12,000). The income is wide ranging but this is a long list of bloggers earning a good income or good supplemental income from their blogging activities.
Crediting the power of crowdsourcing an iStockphoto press release describes how freelancer Lise Gagne has sold 500,000 of her photos on the stock footage website.
iStockphoto pioneered the concept of micropayment stock imagery and was one of the first social networks in the world to actually pay contributors for the sale of their work. It remains the world leader in micropayment stock and is now the global volume leader in all stock photography sales, whether user-generated or traditional. iStock has more than 1.8 million members and an image or video is downloaded from the site every 2.5 seconds.
"Lise is a great friend, a true artist, and has really set the bar high for the members of our community," said Bruce Livingstone, CEO of iStockphoto. "We work very hard to promote our artists, providing training, business cards, partnerships, and advertising that give all our exclusive contributors maximum worldwide exposure. I believe Lise is the first of many who will achieve this milestone, as we have just barely scratched the surface of the worldwide appetite for imagery. What may be her most astounding accomplishment is that by our calculations, she just may be the most prolific stock photographer on the planet."
iStock artists are paid instantly every time one of their images is downloaded. Exclusive photographers can make 40 percent royalties on each image sold, and 50 percent on extended license agreements. iStock promotes its collection and photographers through aggressive marketing and advertising campaigns worldwide, and has many partnerships internationally that increase channel sales potential for its artists.
In recognition of her achievement, iStock is creating an iStock Wall of Fame, with Lise the first member inducted. She'll be joined by many more of the artists she has inspired during her meteoric rise.
It is interesting that iStockphoto is calling itself a social network in the release. They also offers blogs, profiles and friend features in addition to selling photos. Lisa Gagne says she likes the community aspects of iStockphoto.
"I love the community aspects of iStock so much and have learned a great deal from all my friends there since 2003," said Lise Gagne. "I fell in love with iStock right away, but never would have dreamt that someday it would be my career. But things have a way of working out: I got fired from my old design agency for spending too much time on iStock, and suddenly found myself with all the time in the world to give to photography. Now I hope to hit a million downloads in half the time it took to reach 500,000."
We don't know how much money Lise made from the micropayments on the 500,000 photos she sold but selling 500,000 photos is very impressive. It probably helps that many of her photographs are business oriented. You can see her photos and her iStockphoto profile here. Lise Gagne's blog and website can be found here.
The big rumor today first on Sam Sethi's Vecosys and now on Techmeme is that Google may be acquiring Feedburner. Valleywag blogs about why Google might want Feedburner and says the rumored purchase price is $100 million.
Text ads in feeds receive so little attention from readers that Google, which pursued its own trial, abandoned the experiment. Feed readers, the applications and sites on which geeky internet users scan news items, often do not support the graphical ads which brands prefer, closing off that avenue for a broker such as Feedburner.
So, why would Google pay such a high multiple, about 10 times revenues, for the startup? Probably, for the same reason it has developed Google Analytics: it is another way for Google to tie in independent online publishers. Feedburner provides an array of services to sites, such as email newsletter publishing, and the integration of external news and photos. It is more valuable as a publishing service than an ad broker.
Much like in the Google-YouTube deal there is also lots of content passing through Feedburner that Google would like to have ads on. Search Engine Land writes that Google is already testing ads in feeds and asks "so why is Google buying them?"
Feedburner already has an ad network so technically Google would be buying a competitor. So far Feedburner has focused on some of the larger feeds with hundreds or thousands of subscribers. This leaves tons of smaller feeds with little or no ads running on them. Google already has lots of advertisers using AdWords so they are constantly looking for more places to put them. Feedburner would fill this need for Google and it would make it much easier for Google to reach feeds and own the data on how people are subscribing to feeds. The deal makes good sense for the advertising behemoth but so far it is still only a rumor that they are about to acquire Feedburner.
It has been expected in the tech community that eventually retailers and marketers would have to pay to get bloggers and website owners to put more commerical and marketing-focused widgets on their sites. Google plans to make this a reality by including Google Gadget offerings in its AdWords/AdSense program.
Google is not alone. Tumri with its recent infusion of $6.5 million is also in the business of widget advertising. Technorati also recently asked an interesting question related to widget advertising in a survey. Niall Kennedy writes that widget construction and directory sites like Widgetbox and Clearspring also have plans for widget advertising. Mashable has a post about a widget affiliate advertising program called Starnum. And a TechCrunch post mentions a few others including Mpire, Boobox, AuctionAds and Ebay. Amazon.com also has a number of embeddable ad tools that Amazon affiliates can place on blog and websites.
Google won't be the only player in widget advertising but with its huge AdSense network it will be the biggest player. To get the best placement on blogs widget advertisers may have to offer a combination of cost per click, CPM and referrals. A widget advertiser only offering referral commissions probably won't get as good placement as a widget advertiser offering a high CPM rate or a combination of CPC, CPM and referall fees.
Future Competition for Human Bloggers: Super Intelligent Robot Bloggers
In the future human bloggers may face a new threat - robots that blog. These robot bloggers may have the advantage of having processors that are faster than our human brains and the ability to interface directly with the Internet. No typing necessary. The BBC is seriously reporting that South Korea is already concerned with ethical issues involving robots. They will be releasing the Robot Ethics Charter at the end of the year. South Korea's government also predicts robot surgeons by 2018.
A recent government report forecast that robots would routinely carry out surgery by 2018.
The Ministry of Information and Communication has also predicted that every South Korean household will have a robot by between 2015 and 2020.
The article also says that a UK study predicts that robots will demand the same rights as human beings before 2060. If the robots are smart enough to demand rights they will have no problem blogging.
Other bodies are also thinking about the robotic future. Last year a UK government study predicted that in the next 50 years robots could demand the same rights as human beings.
The European Robotics Research Network is also drawing up a set of guidelines on the use of robots.
This ethical roadmap has been assembled by researchers who believe that robotics will soon come under the same scrutiny as disciplines such as nuclear physics and Bioengineering.
A draft of the proposals said: "In the 21st Century humanity will coexist with the first alien intelligence we have ever come into contact with - robots.
"It will be an event rich in ethical, social and economic problems."
Even if all these robot predictions come true we humans should have at least another decade or two to blog freely without the threat of robotic competition.
Sahar Sarid at the Conceptualist brings up the possibility of a blogging subscription model emerging in the future. Sarid points out that newspapers, radio, television, etc all have subscrption models. Scott Karp, writing at the Blog Herald, discussed the concept more in this post.
The issue of whether any paid content online is "better than what you can get for free" has been debated since the dawn of the Web. What arguably makes some of the top blogs better than other blogs is that, by dint of their success, they have become scoop magnets, e.g TechCrunch, Engadget. That doesn't necessarily make their reporting or analysis better, but you can always get the information there first. Of course, if they were behind a pay wall, that advantage might disappear.
That's why the Seth Godin consultant model might be more viable. Darren Rowse at Problogger, for example, offers advice to bloggers equivalent to what you might get from a paid consultant.
The argument against a paid content model for blogging begins of course with ideology - there are many blog purest who would refuse to call a paid blog a blog. Blogging, traditionally, has been about openness and inter-connectivity, which a paid subscriber wall certainly does not foster.
In the future there will probably be some blogs run by experts in a particular field that will be able to charge a fee for access to their blog or feed. However, this will most likely be blogs/feeds that have to do with legal, medical and financial subjects that require an extensive knowledge base. There
have always been financial newsletters that people are willing to pay a fairly high fee for and there is no reason why this won't translate into paid blogs. But paying for blogs that simply offer blogging or marketing advice seems highly unlikely because there is so much of this information already readily available. If someone offering blogging or marketing advice tries to move their blog behind a subscription wall people will just go to other blogs offering similar content. There is no shortage of good blogging or marketing advice on the Internet.
The paid blogging model technically already exists as the New York Times has some blogs that are behind the Times Select subscriber wall. The Times has a blog called the Opinionator that can't be read without a subscription. There are several other blogs behind the Time Select wall as well -- see the "select features" section on the right.
The Wall Street Journal has an article (hat tip Digital Inspiration) analyzing what the job of blogger entails. The pay must have been good for the bloggers the WSJ talked to.
Most self-employed bloggers take in between $2,000 and $10,000 a month from ad sales, says Henry Copeland, founder of BlogAds.com, a Web advertising concern based in Carrboro, N.C. The few that have huge audiences make significantly more, he adds. During election time, for example, a political blogger can bring in $20,000 to $30,000 a month, says Ken Layne, West Coast bureau chief for Wonkette.com, a political gossip blog owned by Gawker Media.
That's much hire than what most bloggers make. Self-employed bloggers also put in many hours. Mario Lavandeira, who blogs at the popular PerezHilton.com blog, says he puts in 19 hour days.
Self-employed bloggers set their own schedules. Writers of breaking-news blogs say 40- to 60-hour workweeks are the norm. To scoop his competitors, Mario Lavandeira, author of the celebrity-gossip blog PerezHilton.com, says he averages 19-hour workdays that start at 5:15 a.m.
Those 19-hour days must help Perez keep ahead of his competition in the celebrity blogosphere. The WSJ piece says bloggers often start out with free blogging services.
CAREER PATH: Most bloggers start out using free Web sites such as WordPress.com and Blogger.com. They say it takes at least six months to build readership and clout in the blogosphere. Mr. Lavandeira advises picking an area you'll enjoy discussing for a long time because "you have to be passionate about what you're writing." A background in journalism or communications helps but usually isn't required. "I don't want to hear where candidates went to college or where else they worked," says Ryan Block, managing editor of Engadget.com, who hires most of the site's employees. "I review writing samples."
The blogging field is changing a little bit with many journalists becoming bloggers as part of their writing responsibilities with the magazine or newspaper they work for. However, many self-employed bloggers do start out on free blogging services and eventually migrate to their own web domains.
If it is taking you too long to accumulate friends on MySpace you can always
buy them. TradersTrade.com (also a Writers Write, Inc. blog) reports that a MySpace account is for sale on eBay with 100,000 friends. There has only been one bid for this MySpace account at $1,800. If you do the math that
translates to 1.8 cents a friend.
If you run a search for MySpace accounts you will find a couple
dozen MySpace accounts for sale with various levels of friends. These auctions listed below are ones that actually have bids.
It's silly stuff but looking at these eBay auctions you come away with
a vague notion that MySpace friends are worth about 1 cent each or less. The auctions with more MySpace friends appear to be getting a little more value per friend than the smaller auctions.
The Christian Science Monitor has an article that looks at what bloggers can make from their blogs.
A little more than $1 billion, or one-fourth of all advertising online, went to Google's AdSense program in the third quarter of 2006. Of that, Google shared $780 million with those running AdSense. Approximately 3 million blogs now use AdSense, according to the blog-tracking site Technorati.
What isn't known is how that $780 million was distributed over those roughly 3 million blogs. But anecdotal evidence suggests that there's a majority making nothing, a sizable minority bringing in at least $100 a month, and a few making serious money.
The article cites a recent survey from problogger.net that found a significant percentage (45%) of 625 bloggers using AdSense make over $100 a month from their blogs. The Monitor says the survey also found that 1/6 make over $1,000 a month from blogging -- so there are at least a hundred+ bloggers making $1,000 a month. The survey is likely to be a little biased towards bloggers that are already somewhat successful but it does indicate that there are some bloggers making good money from their blogs with AdSense. The Monitor article didn't mention it but Problogger's survey also shows 23 people making over $10,000 a month from AdSense.
One of the blogs mentioned in the Monitor story is Kevin Vahey's Charlie on the MBTA. The Monitor says Vahey makes $1,000 a year from his blog. John Chow recently wrote a detailed post where he explains his January earnings of $3,440.66. Chow used multiple tools including AdSense, Vibrant IntelliTXT, FeedBurner, Affiliate programs, TTZ Media, Text Link Ads, ReviewMe and direct ad sales to get to that figure.
Eager bloggers should note that it takes a lot of hard work just to build up enough traffic to earn $1,000 a year and even more dedication to make $1,000 a month. A lot of bloggers also just blog for fun or blog for the soul so if they make some income in addition to enjoying what are they doing so much the better.
The BBC reports that YouTube plans to share in ad revenues with Youtubers.
The system would be rolled out in a couple of months, he said, and use a mixture of adverts, including short clips shown ahead of the actual film.
YouTube has more than 70m users a month and was recently bought by Google.
The offer applies only to people who own the full copyright of the videos that they are uploading to the YouTube website.
The BBC article says any pre-roll ads will be short -- about 3 seconds short.
The audience of the YouTube website will not have to put up with overly long "pre-roll" adverts. Mr Hurley said a clip of three seconds length was one of the options, although the details had not been worked out yet.
Three seconds doesn't seem very long but YouTube has to be careful -- it won't take much to turn off users and send them flocking to one of the many competing video sharing sites. It is even possible that no form of pre-roll will work no matter how short it is. Check out Ad Brite's In Video product for a much different video advertising strategy.
YouTube cofounder Chad Hurley made the announcement at the World Economic Forum in Davos. You can see the video here (thx Jeff Jarvis). In the video Hurley also talks about YouTube's plans to protect the copyrights of music and video publishers.
The BBC also notes that Revver, another video sharing site, already has a revenue sharing model in place. Metacafe is another
video sharing site with a producer rewards program. Break.com also pays for some content according to a Lifehacker post. Down the road some of the video sharing websites may offer to pay more for exclusive access to content. Until then many video content producers will probably try out multiple video sharing websites to see how and where they can earn the most revenue from their videos.
TechCrunch reports that Brazil-based BooBox will be launching a tool to help bloggers sell products from their blogs using clickable images. With BooBox bloggers can add clickable graphics that when clicked open a window over the browser page that displays products that people can purchase. For example, when a photograph of a woman wearing sunglasses is a clicked a window opens showing a selection of sunglasses. The purchase can be completed in the window that opens. Amazon.com is the retailer used in the online demo located at the bottom of the BooBox homepage. BooBox says it uses tags to control what products are shown when the image is clicked on.
You won't even feel it: you tag your image, we send it to the e-commerce website that send a list of possible itens related to your image. Each image tagged gets a booBox icon over it to show your audience where to click.
Presumably you would just tag your image as iPod, TMX Elmo or Versace sunglasses and BooBox's window will show related products when the image is clicked. In the demo you can see the small BooBox icon that gets placed on the images. BooBox likely also provides a snippet of code that bloggers will have to place somewhere on their blog to make the clickable images work.
TechCrunch gives the BooBox an early thumbs up but notes that it isn't clear whether or note they will charge for the service.
Since sites will be using their own affilate codes, booBox won't be able to directly take a cut of transactions. It isn't clear if they are launching this for free, or charging for the service. Pending their position on that, as well as details on how difficult this will be to integrate with websites, I'm giving this an early thumbs up. This may be quick acquisition bait for Amazon or eBay.
However, it seems pretty clear on the website that they do not plan to charge for use of the tool.
How Much Does It Cost To Use The BooBoxes?
For you, nothing. We want you to earn a lot of money with your blog.
There are some affiliate merchant tools like GoldenCan that utilize a 4th click feature where every 4th click is actually GoldenCan's affiliate link but the BooBox website does indicate any kind of 4th click implementation. Maybe they are planning some other feature or service they will charge for. Otherwise it is unclear how BooBox will profit from the implementation of their service.
The idea of linking graphical images to windows offering an array of products from an affiliate retail site is one that might work for some blogs. Michael Arrington said "I imagine Gadget and fashion sites, in particular, will be looking into this quite closely." One possible downside with an image-linked affiliate tool is that blog readers may not be used to clicking on images so they may ignore them. The product window will also need to be extremely easy for users to close so blog readers are not annoyed by it. More coverage of the new BooBox tool can be found on Techmeme.
Google's Inside AdSense blog is blogging that AdSense will be down for four hours this afternoon. They recommend taking down Halloween decorations or trying out some turkey or tofurkey recipes while AdSense is down.
This Saturday, November 11th, our engineers will be performing routine system maintenance from 10am to 2pm PDT. Although you won't be able to access your account during this time, ads will still be served to your pages and we'll continue to track your earnings as normal.
While we know it will be hard to drag yourself away from your account for 4 hours, maybe this will give you a chance to clear away those cobwebs you told friends were "Halloween decorations." Take your pal Jack O. Lantern for a visit to that new neighborhood hot spot, the compost heap. When you've eradicated all the ghouls and goblins from your home, gear up for the next celebration by doing a quick search for turkey recipes (or Tofurky recipes, if you prefer).
The Online Marketing Blog is discussing the message Google's is currently displaying on AdSense accounts. It displays the text "The Google AdSense website is temporarily unavailable. Please try back later. We apologize for any inconvenience." in multiple languages.
An ePublishing Daily survey asked 415 bloggers how they planned to monetize their blogs. Highest on the list were AdSense (45%), developing information products (42%) and affiliate programs (39%). The results were also compared to an earlier survey conducted in January.
More professional bloggers are looking at monetizing their blogs via information products according to a recent survey.
According to the survey, 42% of those surveyed plan to monetize their blogs by creating and marketing their own information products - a big jump from the 29% at the start of the year.
The survey, conducted by ePublishingDaily (this blog) and completed once in January 2006 and again in October 2006 showed a marked increase in bloggers taking a serious look at information product publishing as a viable means of monetizing their blogging efforts.
In stark contrast with these results, reliance on AdSense (and other contextual advertising programs) has fallen from 63% to 45% during the same period.
The percentage of bloggers planning to use AdSense did drop in the survey. It also dropped for Yahoo's contextual advertising program from 27% to 21%. The "other" contextual ad category also dropped from 27% to 18%.
TechCrunch reports on a new site called ReviewMe that promises to pay bloggers for reviews. TechCrunch points out some differences between ReviewMe and PayPerPost. ReviewMe pays bloggers according to their traffic data from sites like Alexa and Technorati. ReviewMe also requires bloggers disclose that the review is a paid review.
ReviewMe has a somewhat different model that PayPerPost. Where advertisers on PayPerPost set a single fee that is paid to all bloggers regardless of their size, ReviewMe uses an algorithm based on Alexa, Technorati and other statistics to determine the importance of a blog and charges a different fee for each blog based on the calculation. Blogger payments range from $30 - $1,000 per post.
Also, Bloggers must disclose that the review is a paid advertisement. They can do this in anyway they choose, ie "The following is a paid review:" "Paid Advertisement:" etc. This is another improvement over PayPerPost, which is heavily criticized because it does not require disclosure.
Finally, advertisers can purchase posts, but they cannot require that a post is positive. The blogger can choose to write their honest opinion without fear of not being paid. The only requirement is that the review must be a minimum of 200 words.
ReviewMe is also running a promotion to launch the service which involves paying out $25,000 to bloggers for reviews of ReviewMe.
Here's how: every new blogger accepted into the ReviewMe network will immediately have the opportunity to earn cash by reviewing ReviewMe itself. This gives new reviewers a chance to see exactly how our system works, and helps spread the word about ReviewMe, too :-) (good or bad). This offer will be in effect until we have paid out $25,000 total for reviews.
Jarkocious registered and blogs that ReviewMe will pay him $50 for reviews.
Anyone can sign up for an account on ReviewMe. I just did, and completed the registration process with ease. Once you are finished with the sign in process you are offered the opportunity to add up to 6 blogs. Each blog is given a ranking based on an algorithm that takes in to account the sites Alexa and Technorati ranking as well as the number of subscribers to its RSS feed. The ranking then ultimately determines the price that advertisers will pay in order to have reviews placed on your site.
You, the blogger, will ultimately see 50% of the price that an advertiser pays in order to have you review their product. In my case, a review on jarkolicious will cost an advertiser $100, allowing me to pocket $50 for a few six-packs of beer, some pizza with a little pocket-change left to spare.
Deep Jive Interests was unfairly dissed by ReviewMe. Deep Jive writes, "Maybe they also take PageRank into account, because being pagerank purgatory, I'm still saddled with the scarlet 'zero'."
LiewCF is blogging about ReviewMe's giant RSS button. The big RSS button can be found on the right side of ReviewMe's blog. They claim it is the world's biggest RSS button. It looks like it is at least 250 x 250 pixels.
Blog P.I. has used the National Journal Beltway Blogroll's post about bloggers being paid by candidates to compile a list of bloggers being paid by candidates in blogger/advisor roles. Blog P.I. used a prorated salary to show who the best-paid campaign bloggers are for each party. By prorated salary they mean "that monthly (approximate) salaries have been prorated to annual salaries." You will see several prorated salaries in the $30,000 to $50,000 range for candidates in both parties. Blog P.I.'s list also includes lump sum payments that have been made to bloggers.
Glenn Reynolds at Instapundit says "My prediction -- it'll be a lot more in 2008." He's probably right. A political blogger with a popular blog and online contacts could make a good income working as a campaign blogger for one of the 2008 presidential candidates.
Professional bloggers have to keep posting frequently because the competition is so intense and traffic tends to drop considerably if posts slow to a crawl or stop. This is especially true for entertainment and celebrity gossip blogs. The Editors Weblog has pieced together several articles in a post about popular blog personalities and web traffic.
Editors Weblog's post first notes the story in Chicago Business that says the Chicago Sun-Times traffic has plummeted 25% since Roger Ebert's departure to recover from his salivary-gland cancer surgery. Traffic to Ebert's own column has dropped 65%. Part of that drop could also be attributed to rather dull movies over the last couple months but a good percentage is definitely due to Ebert's temporary departure.
Editors Weblog then points to thisWall Street Journal story that discusses big traffic drops for several a-list bloggers when they took vacations even though they used guest bloggers. Editors Weblog gives two reasons why bloggers must continue constant posting.
Fans: Internet readers are fickle. If they get used to reading you and then all of sudden you disappear, there are plenty of other equally entertaining blogs and columns online that they will migrate to, soon forgetting about the enjoyment you used to give...
Income: ...and once the fans are gone, don't expect advertising revenue to get any higher. If you're paying the bills with Google Ads, you'd better keep posting.
The biggest risk to vacationing bloggers is probably missing a big breaking news story and not being there to blog about it. The Editors Weblog is correct that readers will look elsewhere and find other voices if you are not around, but that risk is always there whether you are on vacation or not. Most bloggers should be able to afford a week or two vacation. Traffic will drop but it should return to previous levels when the vacationing blogger returns. If you are really concerned you can always hire a guest blogger to keep posts on your blog going while you are away.
TechCrunch reports that PayPerPost, a controversial third party advertising service that pays bloggers for blogging about products and services, has raised $3 million in a round of financing.
The service is a marketplace for advertisers to pay bloggers to write about products for a fee. Commenters to our original post were polarized into those violently for and those againt the product. The key area of controversy is the fact that advertisers can mandate that posts be positive on the product, and disclosure of payment is optional for the blogger (screen shot at end of post shows sample available writing opportunities).
The controversy didn't stop venture capitalists from quickly jumping on board, though. On Tuesday PayPerPost will announce a $3 million round of financing led by Inflexion Partners and with participation from Villiage Ventures and Draper Fisher Jurvetson. Dan Rua from Inflexion and Michael Barach from Villiage Ventures will take board seats. Josh Stein from Draper Fisher Jurvetson will become a board observer.
TechCrunch is correct that there were some polarized bloggers when the service was announced several months ago but there was some indifference as well. You can see our roundup of blog coverage from PayPerPost's launch here. TechCrunch's post about PayPerPost's launch is here.
A list of the current ad opportunities for bloggers can be found here on PayPerPost's site. It looks like PayPerPost currently pays in a range of about $2.5 to $12 for a post depending on what the individual advertiser is paying. That could amount to some decent revenues for an individual blogger who doesn't mind blogging about a variety of different products and services -- and who isn't afraid their readers won't mind. However, PayPerPost alone isn't likely to generate enough revenues for a blogger to be able to quit his or her day job. For far more impressive revenues take a look at this story today from MarketWatch. Frank Barnako is reporting that Rocketboom is now charging $80,000 for a week of ads in their video blogs. Now that is some serious revenues. Of course, most blogs don't have anywhere near Rocketboom's traffic so they typically settle for a third party ad service or a combination of third party ad services.
The Pew Internet and American Life Project has a new report that is the result of over 200 in-depth phone interviews with bloggers. Pew has posted a 33 page PDF file of the results from the study. The study found that most bloggers use their blogs as personal journals and cover a wide variety of subjects including themselves -- 37% of bloggers said they blog primarily about "my life and experiences." Here are some interesting findings from the study.
55% of bloggers blog under a pseudonym, and 46% blog under their own name.
59% of bloggers spend just one or two hours per week tending their blog. One in ten bloggers spend ten or more hours per week on their blog. So, over 10% spend more than one hour per day attending to their blog.
34% of bloggers consider their blog a form of journalism, and 65% of bloggers do not.
56% of bloggers spend extra time trying to verify facts they want to include in a post either "sometimes" or "often."
49% said their blog readers are people they know personally.
87% of bloggers allow comments on their blog.
Just 18% said they have an RSS feed. However, 23% did not know if they had a feed or not!
41% have a blogroll and of bloggers with blogrolls 18% have a blogroll with 50 or more links.
The median number of inbound links was 13.
Just 7% said making money was a major reason they blog.
On Money: The study found most people don't blog for money. This wasn't a surprise at all because other studies have also shown that most bloggers simply don't care about making money.
The least common reason people blog is to make money. Only 15% of bloggers report this as a reason for their blog-keeping, and just 7% call making money a major reason. Bloggers over age 30 are more likely than younger bloggers to give making money as a reason to blog.
Publishing2.com calculates that this means there are about 3 million people blogging for money. Some of these 3 million may be very vulnerable to quitting should a significant drop in pay-per-click revenues be on the way thanks to high click fraud rates. However, it won't result in a significant reduction in the number of bloggers since most bloggers don't care about how much money their blog makes.
The study also included these two paragraphs about how people make money from blogs. One statement said 20% of blogging for money bloggers claimed to sell premium blog content? That seems awfully high.
Selling items is the most popular way for this group of bloggers to raise money. About seven in ten bloggers who make money do so by selling things on their site. Bloggers can sell items branded with their own logo or sentiment through fulfillment sites such as CafePress.com or they can join something akin to the Amazon Associates program that allows individuals who recommend an item for sale on the Amazon site to receive a small payment every time someone uses the link the individual provides to purchase the recommended item.
Blog advertisements are another popular way for bloggers to earn money; about half of money-earning bloggers do so through ads. About a third of money-earning bloggers say they get cash from online "tip jars" where readers can leave donations, either through PayPal or another online payment source. Premium content, which readers must pay for, is a source of income for about one in five money-earning bloggers.
A post by Joe Wilkert has us taking another look at the "premium content" information. The study found that 1/5 of the "blogging for money" bloggers sell premium content on their blog. Using Publishing2.com's figure of 3 million for the number of "blogging for money" bloggers gives you about 600,000 bloggers selling premium content. That might be reasonable if you include items like books and music in the premium content category. There are quite a few authors and musicians blogging.
Artist Uses Blog to Sell Paintings of Tech Gadgets
Gautam Rao is a painter who has created several paintings of tech gadgets, including the Mac and the iPod. Rao blogs about his paintings and links to them to eBay where they can be purchased. Rao has photographs of some of his work in this blog post. The blog post also includes links to eBay where these paintings are currently up for bid. A few of his paintings, including the Mac painting, have already sold. The iPod painting can be found on eBay here. The Raw Feed briefly sums up Rao's creative practice in this post.
Some say technology is rendering traditional painting obsolete. But Artist Gautam Rao still paints the old-fashioned way: with paint and brush on canvas. However, his subject matter is a little less traditional: He PAINTS THE COMPUTER AND GADGETS on his desk, such as his iPod, his Mac screen and closeups of icons. He even did a self-portrait (his image as it appears on his web cam). And then he BLOGS the lot and sells them on eBay.
It is an innovative idea. Blogs are a tool more artists should use to showcase and sell their artwork.
The San Francisco Chronicle (SFGate.com) reports on a click fraud study by Outsell Inc. that indicates click fraud is a serious and growing problem. Here are a few details reported by SFGate.com.
Clicks believed by advertisers to be fraudulent: 14.6 percent
Money paid by advertisers for bogus clicks: $800 million (2005)
Advertisers who said they were victims of click fraud: 75 percent
Advertisers who said they reduced click-based advertising or plan to: 37 percent
Revenue lost by Google, Yahoo and other Web sites, as a result: $500 million
Advertisers who request refunds because of fraud: 7 percent
Average refund: $9,507
Chuck Richard, vice president of Outsell, told SFGate that pay-per-click advertising is destined to be replaced.
"Pay per click is a really rudimentary advertising -- a baby step -- and it's destined to decline and be replaced by other advertising methods," Richard said.
Some blogging for money bloggers could be hurt financially if pay-per-click advertising is reduced because of the click fraud threat. Most bloggers don't make much money from AdSense or any other third-party advertising program. The exception are blogs with very high traffic and a targeted audience. If the Outsell study is accurate then some bloggers relying on pay-per-click money could be in for a shocker when their monthly checks shrink. However, it probably would not change blogging much overall because many bloggers are not in it for the money.
A blogstorm has erupted about a new service called PayPerPost.com that does just what the name implies: promises to pay bloggers per post for promoting a product or service in a blog post. Here is a list of the current opportunies that range from fast loan offers to Spider-Man 3. Matthew Ingram has a good post that summarizes the events so far. A BusinessWeek article called "Polluting the Blogosphere" first discussed PayPerPost.com. PayPerPost.com now has "As Seen in BusinessWeek" as part of its logo. Here is a little of what BusinessWeek had to say.
Murphy is launching PayPerPost.com, which will automate such hookups between advertisers and bloggers and thus codify a new frontier of product placement. Advertisers pay to post details about their "opportunity," specifying, among other things, how they want bloggers to write about, say, a new shoe, if they want photos to be included, and whether they'll pay only for positive mentions. Bloggers who abide by the rules get paid; heavily trafficked blogs may command premium rates. Those seeking to subvert PayPerPost from within can't: No pornographic or "illicit" content is accepted.
Murphy's approach used to be more ad hoc. He made invitations through e-mail via the BlogStar Network, which he started in 2004. BlogStar paid nicely -- a flat fee of $5 or $10 per post. "Easy money...go buy a burger or something," advised a BlogStar invitation from 2005 soliciting posts about cable network TNT's basketball commercials featuring HBO character Ali G. That come-on also told bloggers "we definitely appreciate more positive posts."
TechCruch followed with a critical post called "PayPerPost.com offers to sell your soul." This led to much more criticism of PayPerPost.com. Here are some comments from bloggers which have ranged from negative to indifferent to curious about PayPerPost.com.
Jason Calacanis: "The currency of blogging is authenticity and trust... you pay folks to blog about a product and you compromise that. I would almost care about this, but it's so obvious to everyone that this is either a joke or an idiot that there is nothing more to say."
Scott Karp at Publishing 2.0 calls it the swift-boating of the blogosphere: "It's the Swift-Boating of the blogosphere. Once you've been slimed, there's nothing you can do to shake it off."
Brandstorming gives 6 reasons why they think PayPerPost.com is going to fail.
Rob Hyndman says who cares: "The 'sphere's explosive growth has diluted its much vaunted authenticity, and the proportion of bloggers who reliably speak with unblemished candour is dimishing exponentially (and with it, the number of feeds I follow)."
Evilvlog notes a comment on the TechCrunch post that compares this type of advertising to ads heard on the radio -- like when the DJ promotes a product.
Mark Evans: "It's a just a business launched by an entrepreneur who sees an opportunity to make some money. The one major flaw within PayPerPost's strategy is there is no requirement for bloggers to disclose they're receiving a fee. This needs to be fixed ASAP."
Elliot Black: "See, blogging is about personal expression. If I want to blog about Peculiar Blue Dinosaurs, and Pay Per Post will happen to offer me a commission for writing about it, why say no? The only possible moral confusion I see is where the incentive is enough to sway a blogger's opinion about the service, which for a successful, popular blogger is unlikely." In a follow-up post Elliot Black analyzes the comments on Digg and TechCrunch.
PayPerPost.com CEO Ted Murphy has an "Apparently I am the Devil" post on the PayPerPost blog: "There is quite a discussion going on over at Techcrunch.com about this service. People are all over the board making some very broad generalizations. I have been called just about everything under the sun today. We are just going to go ahead and take the site down. LOL. Never!" This post about which blogs sent PayPerPost traffic is an interesting one.
Mark Evans has a good point about there not being a disclosure requirement. Maybe bloggers who use the site will do this on their own. Most complaints about advertising crossing into editorial (whether in print or online) have been when the mention of a product or service is not disclosed as being paid for. See more discussion of PayPerPost.com on TechMeme.com, Technorati, TailRank and IceRocket.com.
Google AdSense has launched a test of a new ad vehicles that pays publishers using Cost-Per-Action (CPA). The move toward CPA puts Google in competition with affiliate networks like Commission Junction and Linkshare. ZDNet's Googling Google asks if this program launch is a sign Google recognizes the click fraud problems advertisers are facing with CPC programs. A recent Mark Cuban post suggested that click fraud is out of control. While some bloggers are optimistic that Google's new CPA ads could add an additional revenue opportunity others say it could doom the good CPC pay rates some bloggers are now getting -- especially if advertisers starting opting for the CPA program instead of the CPC program. Blog Republic writes that the new program could lower revenues for bloggers and ruin the CPC program.
A move towards CPA (Cost Per Action) ads could deliver a hurting to Adsense publishers. CPA ads are very attractive to advertisers because they lower their cost of acquisition for leads or sales. However, there's a big flaw inherent in this type of set up: it's not always the publishers fault that the end user doesn't convert on the advertiser's end.
In fact, a lousy landing page ensures low conversions, which means publishers will be punished for an inept marketer's miscues.
Worse yet, there's a double sting from this. Not only do you reward crappy marketers for bad landing pages by discounting the price they pay, but you also punish excellent publishers by discounting the amount you pay them for traffic on their website. No way is this the direction Google should take the whole program in. In fact, this could be so bad for publishers that it would be the beginning of the end of most webmaster's best performing revenue maker.
Jeremy Schoemaker writes about how the AdSense referral program for Firefox doesn't pay well. MIT's Advertising Lab also has a post about why CPA advertising programs can be bad for publishers.
The problem with CPA is that it shifts the entire burden of responsibility onto publisher, and it shouldn't. Publishers are responsible and should be awarded for impressions their sites generate (the old-fashioned circulation, if you wish). They share responsibility for click-throughs with "ad agencies" that create the ad; publishers' role is to position the ad unit on a page in the most effective manner. Publishers and "ad agencies" get customers in the door, but it's the job of the shopkeeper to close the deal. Publisher should not be punished for transactions that fail because of the problems on the shopkeeper's end, such as low inventory, confusing store layout or unfriendly service. Look, do you think my ad spread in Cosmopolitan should be free if it fails to move my bling even if my bling is worthless and the distribution system sucks? How many ads have you clicked only to be lead to a page that has nothing to do with the original offer?
Greg Yardley also blogs about some disadvantages for publishers using CPA programs. JenSense has more details about Google's invite-only CPA test. More discussion of Google's CPA ads can be found on here on ProBlogger and here on Technorati.
Social Networks, Digital Expression and Similar Business Plans
Robert Young has an interesting post on the GigaOM blog where he explains how social networks enhance self-expression in a brand new way.
It's crucial to understand that social networks are architected to help scale self-expression to new heights, both in terms of the extent of self-expression as well as the reach of distribution (e.g. number of "friends" and the effects of the whole six degrees of separation thing). A simple example... a person on MySpace can have thousands upon thousands of friends. This was not possible before the Internet, and even prior online communications & community innovations like email, chat/forums, and IM didn't truly enable this kind of scale. Moreover, a person can now express him/herself with multidimensional, multimedia depth via text, photos, audio and video... again, to a degree that was not really possible before.
To some extent, self-expression should be viewed as a new industry, one that will co-exist alongside other traditional media industries like movies, TV, radio, newspapers and magazines. But in this new industry, the raw materials for the "products" are the people... or as Marshall McLuhan might say, "the people are the message" when it comes to social networks. So for any player who seeks to enter this industry and become the next social networking phenom, the key is to look at self-expression and social networks as a new medium and to view the audience itself as a new generation of "cultural products".
Robert Young's post discusses people on MySpace having thousands and thousands of friends and being unable to do this in the real world. Companies that can provide something online that does not exist in the real world have been successful online including big companies like Amazon.com, Ebay and AOL, so maybe one or more of the social networks will become a major player? Of course, companies like Amazon, Ebay and AOL actually sell things: products, auction services and subscriptions. Scott Karp says Show me the Business Model and notes that everyone's business model today is "gather audience, sell advertising." So far nearly all the Web 2.0 models focus on bringing in revenues by selling ads. Some of the Web 2.0 start-ups even focus solely on contextual ads. A lot of these companies will fail beause they are going to run out of money before they ever get enough advertising revenues to survive.
Robert Scoble has a post that notes the double-underlined words, a form of web advertising, that are starting to appear on some blogs and websites.
I don't mind this as much as I minded SmartTags when Microsoft was attempting to do them (before I was an employee I argued voiciferously against them, along with many other people in the community because we didn't want anyone to be able to use our own words for doing this style of advertising). Choosing to do it on your own blog only gets rid of most of my objection. I still don't like these kinds of ads, though, cause for someone who doesn't know the Web very well you can't tell these are ads at first.
I don't notice them much. When I do see them though they really annoy me - they look far too much like hyperlinks and distract far too much from the content.
It's odd as well that they never feel relevant. Just because a post mentions the word apple doesn't mean I want to buy one (the fruit or the computer). What tends to disturb me more though is forums that use this kind of advertising that I've been seeing a lot. That's putting ads in the middle of your users words and I'd consider it outright unethical.
These look similar but they are much different than the invasive Smart Tag idea Microsoft came up with. Microsoft was going to force website owners to have to opt-out of the Smart Tags by adding code to their site. Bloggers and other web publishers are choosing to put these "links" on their blogs for money. However, that doesn't mean they are much better. They aren't attractive and as some of the comments on Scoble's post explain they could hurt a blog's or site's usability. Vibrant Media is one company providing this type of advertising through a product called IntelliTXT. There are a couple of big tech publishers using them now, O'Reilly and Tom's Hardware Guide, so maybe they help the publishers make money.
TechCrunch has a post about the slow progress (or lack of progress) being made at Squidoo. Squidoo lets people set up lenses on different topics. Here is how Squidoo defines a lense.
A lens is one person's view on a topic that matters to her. It's an easy-to-build, single web page that can point to blogs, favorite links, RSS feeds, Flickr photos, Google maps, eBay auctions, CafePress designs, Amazon books or music, and thousands of products from hundreds of other trusted merchants. You can pick whatever content you want to put in your lens to bring context to your topic. Then, when someone is looking for recommended information, fast, your lens gets his started and sends him off in the right direction. It's a place to start, not finish.
People can set up as many lenses as they want but each lense is focused on a single topic. Some of the top lensmasters on Squidoo can be found here. One lensmaster even set up a lense for new squidoobees. Newbie lensmasters can also learn lensmaster skills at SquidU. The entry on TechCrunch has an email sent out by the SquidTeam, including founder Seth Godin (the Original Squid), that says the most people have made from Squidoo so far is about $30.
We're just out of beta, and we're betting no one is going to retire on their lens earnings. But already some of you have earned as much as $30 (dinner for two!). Others have earned about $1. And still others have pooled their money to send thousands of dollars to places like Room to Read, which helps build schools for children in developing countries.
A post on the Squidoo blog, which is similar to the email, says some lensmasters have made as much as $40. That still isn't very much money and Michael Arrington says that an expert could easily make more money blogging.
The best lenses are generating $30 or so a month for the lensmaster. A true expert on a topic could generate many, many times that number by creating a blog, along with some static content, and putting up simple Google adsense ads. So top content producers are not going to be heading to Squidoo for the money, ever (Squidoo’s model is set up in such a way that they could never make as much money from a lens as they could on their own). And besides, the blog format just works better for experts - fresh content generates lots of links, which equals traffic and search engine juice.
The only unanswered question is whether or not experts will go to Squidoo even without the financial incentive. Maybe, but Squidoo's tools are not particularly advanced - self publishing is easy these days.
Squidoo may generate some content creation growth, but I don't see it generating serious page view growth under their current model.
One advantage Squidoo may have is that if Squidoo does start building traffic people may start a lense there even if they already have a blog or a website on the same subject or a closely related subject. They won't care that it doesn't make them money directly if it can help them drive traffic to the blog or website that does make them money. In the long term this might help Squidoo continue to build pageviews. Another possible factor in favor of Squidoo is that Squidoo lenses are only a single page. This makes it a great place for extremely specific topics that people might not want to devote an entire individual blog to.
Steve Pavlina blogs that he is now making $200 a day from his blog. In the same post he also provides detailed advice about how to make money from your blog. Steve makes a lot of good points in his article. We have summarized a few of them here.
Depressingly high failure rate: Steve says "99% of people who try to generate serious income from their blogs will fail."
"You don't need to be a programmer, but you need a decent functional understanding of a variety of web technologies." Good advice. It isn't to hard to get caught up if are new. Blogs are free and full of information. Check the blogroll on the left side of BloggersBlog.com for starters. Steve also recommends reading Problogger and we do as well. Problogger, written by Darren Rowse, has a terrific beginnner's section for novice bloggers. Rowse does a does a great job of explaining blogging concepts in a way that beginners will be able to quickly understand