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15 November 2005

Site Traffic Vs Links

Will site traffic metrics become more important than links in blog advertising? That's what Heather Green partially examines at Blogspotting and I would most definitely say yes. Links do show some sense of a blogs popularity but they are pretty far from providing the kind of eyeball accuracy that is needed by advertisers nowadays.
The key here is one of those awful advertising acronyms - ROI or Return On Investment. Advertisers like to predict with as much accuracy as possible, how their ad spend will be converted into extra revenue and quite frankly the best way to do that is by looking at site traffic. Hence the moves by Calacanis of Weblogs AOL (not sure what their calling themselves these days) to corner the market in site traffic data. Of course he claims that collecting and managing this data is for the wider good. Yeah right. It's a great business opportunity and and a great idea to monopolise and control the data from the cream of the blogsophere. Mr Calacanis is a great business man but I wish he would be a little more forthright about this opportunity rather than shroud it in a blanket of public service duty, particularly when you look at the charges he is proposing for collecting and presenting that data to advertisers.

2 Comments:

Blogger JasonCalacanis said...

fyi: my proposal was to make it a non-profit that I wouldn't control. we don't need to make money from the directory... we'll make money having some of the top blogs in the directory--that's enough for me.

Tuesday, November 15, 2005  
Blogger Peter Brady said...

Thanks Jason. I have a great deal of respect for what you have achieved and I appreciate hearing your side of things. The point I was making related to this comment in your recent post:

http://www.calacanis.com/2005/11/03/weblogs-inc-v-gawker-stats/

"3. Each blog publisher would pay a startup membership fee (say $1,000), and a yearly fee based on traffic per blog (maybe you would pay $100 a year for under 100k page views a month, $250 for 100-250k pages a month). This money would pay for a staff of one or two folks to manage the blog directory for advertisers."

By my reckoning a $1000 startup membership for say a conservative 2000 blogs = $2 million dollars plus probably another $500,000 a year for the other bits and pieces you're talking about. This seems to do more than cover the "costs of two folks".

All I'm saying is that this doesn't sound like a non profit organisation. This sounds like a great business idea from some great entrepreneurs. It also happens to be something I have been working on for the last 6 months!

Wednesday, November 16, 2005  

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