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The Business of Blogging

“Blogging may be the fastest-growing publishing medium ever invented. (Howarth, 2005) according to the blogging information company Technorati, there are currently 10 million blogs, a number that is growing by 40,000 every day. The term blogging is short for web log and is also known as a webblog or blog. A blog is an Internet journal that can be quickly and easily be created and maintained.

Blogs create an extensive network of information, contain links and syndicate its content; this environment provides opportunities for advertisers that no other medium has previously ever been able to provide. As WebBlogs are the newest edition to the online advertising and marketing environment, the extent to which advertisers or marketers can use blogs is yet to be established.

Blogs are creating uncertainty for businesses because of the economic impact that blogs have and continue to have are currently immeasurable. Despite the uncertainty that surrounds this new media it is undisputable that blogs can significantly impact the online advertising as they can generate awareness, burnish brands, direct and alter the organic flow of online traffic.

With the decrease in click through rates for traditional online advertising the increasing success of new inexpensive medias like blogs are becoming evident, with an impressive 5% click through rate blogs provides a great return on investment, businesses only need to invest $10 - $350 a week which is minimal in comparison to traditional media spends (Ochman, B, 2004).

With this increasing return on investment, it is evident that no organisation or company can afford to ignore this new advertising media. Despite the impact that blogs are making the vast majority of the 8 million or so blogs currently in existence have few if any ads (Mintz, J. 2005).

Ochman that there are three main reasons why businesses and organisations are not utilising blogs to their full potential; fear, ignorance and the knowledge that some of the pioneers of the advertising blogging industry are unsuccessful.

The benefits to utilising blogging far out way the disadvantages, however the disadvantages will undoubtedly cause the blog to be a failure, and could possibly place the company in a position of ridicule or place the brand in a controversial position. It is the failure of some blogs such as the Doctor Pepper racing cow. The blogging campaign wasboycotted. Negative experiences like this however could still provide publicity and created as the story not only circulating in online environment, but traditional media, creating product awareness.

Well-placed blog ads can boost a company's image as cutting-edge and versatile.. Blogs can be become a money making enterprise in themselves, sites such as the DaileyKos have over 15 million page views a month and receive over $9,000 a week in advertising. Blogs are a gateway to consumers a medium through which interactive relationships can be developed and online attitude and brand monitoring of the consumer, and their values and attitudes can occur.

“Advertisers should look at blogs in terms of brand development,says Rick Bruner of Business Blog Consulting and see them as a way to improve interactive relationships with consumers and improve search engine marketing. Blogs may be “either the biggest threat or the best opportunity marketers have encountered so far this decade. (Howarth, 2005)