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Online news sites and bloggers will eventually need to specialize by advertisers’ sales prospects to monetize 7/8/07

Posted by Steve Boriss in Advertising revenues.

As emerging online news sites and bloggers mature, the psychic satisfaction of getting a large number of daily hits subsides, and thoughts turn to how to monetize, a reality will set in. News sites with a high number of hits alone will not appeal to advertisers, who will be able to find innumerable other sites drawing general audiences, many attracting even more hits. The quality of hitters matters.

The sites with the edge will be those that draw relatively pure audiences of good sales prospects for particular advertisers, especially prospects who are otherwise hard to reach. That’s one of the reasons that hyperlocal news is so promising, as many advertisers’ best prospects live within very limited geographies. But, non-geographically-based online news can be just as, if not more attractive to advertisers — imagine the attractiveness of a site that provides news of fly fishing to a company that sells related gear.

That’s not to say that the one-time surges from being cross-linked by mega-sites like Digg and Fark, as discussed on Lost Remote, won’t always be extremely valuable — they will draw new people to sample the site. But it is how many of the advertisers’ ideal prospects return and, perhaps more importantly, how many poor prospects don’t, that will determine whether a site is a hit with advertisers.


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