In this article, Claire Cain Miller reports on a small blogging website that has now become a media empire and why this website and others like it are starting to attract ad dollars while magazines are losing them.
This article was interesting to me because as an advertising major I like to keep updated on the different ways to advertise a product, especially on the web. Blogging websites are becoming the new way for national and regional companies to advertise.
This article introduces you to Lisa and Brian Sugar who started Sugar Inc. four years ago. What started as a celebrity gossip blog has now grown into a media empire that publishes 12 blogs and has 11 million readers a month, which are attracting advertisers like Chanel and Sony. The company has reported that their ad revenue has increased 20% in the first half of the year and they are on track to doubling their revenue and turning a profit this year.
Gawker Media was one the earliest and now the biggest blog networks reports that their ad revenue was up 45% in the first half of this year. Gawker Media has eight blogs and 20 million monthly readers.
According to Publishers Information Bureau, magazine ad revenues have dropped 21% in the first half of this year and the number of ad pages sold has dropped 28%.
With their narrow-topics, competing content, and business models, blogging websites are driving their readers back many times a day, which in turn is attracting their advertisers. Shenan Reed, a founder of Morpheus Media, said, “When you’re dealing with a company where the editorial control is living under one roof, you feel like there’s a consistency in the message, which is what makes Sugar, Gawker and Curbed fantastically interesting to us.”
It will be interesting to see where advertising on the web will go next!
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