The media and tech world are swirling with excitement over announcements that two blog networks have recently received venture capital funding. First B5 Media received $2 million in venture funding and then today it was leaked that PopSugar received 5 million in funding from the very posh Sequoia Capital.
The typical blogosphere response has been one of skepticism. But whether or not the networks deserve funding, it raises an interesting question for how marketers, advertisers, and public relations professionals will promote their brands in the future. Clearly venture capitalists are betting that they will see the value of working with new media ventures.
In the case of B5 media which has no concrete or targeted vertical it is hard to see who will be making the ad-buys. They have beauty blogs, tech blogs, and other niche blogs with very little in common with each other.
But in the case of PopSugar it is a little easier to see. The network (though some have questioned whether it can rightly be called a network at all) is targeted to women and gossip hounds. And that demographic surely enjoys fashion and beauty marketing.
And yet, in an age where we can target marketing more efficiently than ever before, will marketers and advertisers be willing to invest ad dollars in the still risky blogosphere without the guarantee that it will reach the perfect demographic? The trade-off for the perceived risk is knowing that you will have much better follow through online because targeting is much clearer. And as for public relations professionals, is it worth following up with the many blogs in these networks without knowing exactly who they are reaching out to? As was noted in the TechCrunch comment thread, there are already far more popular and well read gossip and women's interest blogs than PopSugar.
As money moves into the blogosphere it will no doubt raise many unique challenges and questions for those charged with reaching out to the public as brand advocates.
The typical blogosphere response has been one of skepticism. But whether or not the networks deserve funding, it raises an interesting question for how marketers, advertisers, and public relations professionals will promote their brands in the future. Clearly venture capitalists are betting that they will see the value of working with new media ventures.
In the case of B5 media which has no concrete or targeted vertical it is hard to see who will be making the ad-buys. They have beauty blogs, tech blogs, and other niche blogs with very little in common with each other.
But in the case of PopSugar it is a little easier to see. The network (though some have questioned whether it can rightly be called a network at all) is targeted to women and gossip hounds. And that demographic surely enjoys fashion and beauty marketing.
And yet, in an age where we can target marketing more efficiently than ever before, will marketers and advertisers be willing to invest ad dollars in the still risky blogosphere without the guarantee that it will reach the perfect demographic? The trade-off for the perceived risk is knowing that you will have much better follow through online because targeting is much clearer. And as for public relations professionals, is it worth following up with the many blogs in these networks without knowing exactly who they are reaching out to? As was noted in the TechCrunch comment thread, there are already far more popular and well read gossip and women's interest blogs than PopSugar.
As money moves into the blogosphere it will no doubt raise many unique challenges and questions for those charged with reaching out to the public as brand advocates.
Posted by Amy Bailey on October 17, 2006 1:05 PM
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