Tuesday, February 10, 2009

Trust me, I know

It's not looking good for those hoping to make money from their blogs. (Newsweek)

Advertisers shy away from blogs because they're too unpredictable and because few blogs attract anything approaching a mass audience—and even those that do face so much competition that ad rates remain pitifully low. "A lot of expectations are coming down in terms of monetizing social media," says Paul Verna, an analyst with eMarketer. " People have not figured out a clear way to monetize some of these vehicles." The bad economy compounds the problem, Verna says, but the real issue is "the lack of a clear business model that can generate substantial revenues."

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