Backsliding Google Economy Hits Ad Networks and Blogs – Advertising Market

Things do not look rosy for hundreds of small and medium ad network enterprises around the dot com universe. According to reports, many ad networks are no longer able to keep up and many are closing down.

Similar to that fate of many advertising entities on the Internet, blogs or print-based businesses that are closely allied with ad networks are suffering as well. With the amount of competition in the Google sandbox, things are turning nastier by the minute.

It is possible that the so-called “blogosphere” is already saturated – too saturated to create more revenue for those who depend on passive earning through ads. Even known premium content providers are feeling the backsliding of the Google economy – the New York Times not excluded.

Replacing ye old blog

So what is the difference between the good old blogs of yesteryear and the most visited blogs in the world today? One was genuinely written, the other has been strategically planned so it would generate revenue. Commercialization is the term, and small groups of like-minded members see this as the only way to survive in time when ad networks are slashing their rates to stay afloat.

According to news, since big names are already selling off large portions of the blogosphere, it should be no surprise that a contraction in online advertising activity would be felt. With fewer and fewer operational businesses, online ads have nowhere to go.

Domains suffer too

Owners of domain names are complaining as well- the consistent stream of revenue that was the norm a few years ago is now petering out. To stay afloat, private domain enterprises have been selling off portfolios to remain alive in the industry.

Advertising revenue has been one of the foundations of the domain business – which is why any contraction, and form of retrograde trend with ads will send these businesses down in a domino effect.

Social media? Forget about it!

Between paying for dollars per click, some just might be desperate enough to post ads in places like Livejournal or Multiply. At five cents, it’s tempting to place ads in a social medium where people log on and off several times a day. But experts warn: forget about it.

Advertisers fight back: new strategies

One of the solutions seen by large companies is forming networks or communities that would be directly enmeshed in the process of advertising. Youtube has already been doing this for a long time- the service exists (video uploading and streaming flash videos over the Internet) but at the same time, Youtube has large communities of every type. These communities are loyal to Youtube one way or another.

Now take this approach and think of the consequences: these communities are made up individuals with personal blogs and the like- which means that they would be using Youtube’s services to spice up their personal spaces as well.

You see the magic? Brand loyalty goes a very long way and the revenues eventually creep back in, with constant improvement of services and a dynamic relationship with the individuals making up the market structure.

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