A
post on Paul Scrivens' Wisdump blog today suggests that blog networks have failed. His idea is that most blogs -- let alone blog networks -- fail because they don't produce great content that encourages user engagement. He also notes that the reader of one blog in a network may not be interested in any of the others.
I agree that insightful and entertaining content that engages the reader is vital to having a successful blog. And one blog in a network may not appeal to most readers of that network. But, that is only one side of the blog network equation. For readers, networks are only as useful as the number of blogs that they are interested in.
But, for the advertiser, the entire network is of use. That's the other side of the blog network equation. And since Scrivens may have been referring to more informal networks of blogs, he failed to mention advertisers in his post. While readers of Gawker's Fleshbot may not be interested in the company's Valleywag blog, advertisers might be swayed by similar demographics of the readers. So you can sell network-wide ads in addition to the more specific ads better suited to each blog's topic.
Don't take my word for it. Look at what venture capitalists are doing. Benchmark Capital invested in Seeking Alpha, a network of financial blogs. Accel Partners and others invested $18.5 million in Glam Networks, which reportedly attained a $150 million valuation during that December round of funding on the back of its blog network. Or take Sequoia Capital's investment in Sugar Publishing last year as proof that investors believe there is value in the network. There are other examples. Corporates are also in on the act. ESPN and Sports Illustrated have been buying small blogs such as TrueHoop.com, TalentedMrRoto.com and Fan Nation to build out their own blog networks.
This is the same media model that has worked for years. It's just being updated to new technology. And just like in the printed world where most new magazines fail, most blog networks will fail. But, it's a lot cheaper to fail on the web than in print. And the chances for success are better on the web because startup costs are lower, the model is very scalable and it's easier to reach new communities of readers that may not be well served in print.
For these reasons, it's a great time for budding media companies to launch a network of blogs and for traditional media companies to expand their footprint with new blog content.
For more on Blog networks, see:
TechMeme
Wisdump
Tags: blogs, blogging, vc, venture+capital
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