Last night BuzzLogic announced the release of their “Conversation Ad Network”. The new service uses Nielsen BuzzLogic’s influence tracking service to attract advertisers. It’s a pretty smart idea as BuzzLogic is one of the premier influence tracking services. The use of influence to determine effective advertising CPMs is a relatively new strategy and one that I’ve suggested could be used to produce the “personal CPM” on social networks.
While the solution sounds like a smart one, attracting the attention of bloggers has become increasingly challenging as the advertising network industry has become overly saturated. Saturation is not just happening within blog ad networks. Social networks have also seen an increase in saturation and based on people I spoke to at Social Ad Summit on Monday, things are about to get much more saturated.
One interesting thing about this new BuzzLogic ad network is how advertisements are targeted. According to the release, “Unlike vertical networks that target based on category, the Conversation Ad Network targets ads based on the trusted relationships formed between blogs engaging in conversations on specific topics, as well as each bloggerÃ¢â‚¬â„¢s credibility on that topic.”
To think that years after blogging took off we are still trying to develop effective advertising solutions, is somewhat surprising. Then again, this news emphasizes how social media is still a young industry. While social media as a whole is maturing, monetization is still something that many are trying to figure out. Unfortunately, I think we are going to see even more ad networks launch before consolidation starts to become widespread.