Blogging Is Their Business, and Business Is Good

SugarIncLogo.jpgWith stories galore about ad spending dropping for traditional media such as newspapers, magazines and television, where are all of those ad dollars going? According to The New York Times, some of them are going to the blogosphere.

And these blogs aren’t taking in pennies and nickels from the local car wash: Mainstream advertisers are taking the plunge, such as Chanel and Sony, in the case of Sugar Inc., the Times reports.

Sugar Inc. started modestly four years ago, when Lisa Sugar started a blog about celebrity gossip, and now she and husband Brian oversee 12 blogs with 11 million readers per month and big-name advertisers. Brian Sugar told the Times the company’s ad revenue rose 20% in the first half of 2009 and it is on track to double its revenue and turn a profit this year.

Blog publisher Gawker Media also reported a 45% revenue gain in the first half of the year. On the flip side, the Publishers Information Bureau said advertising revenue for magazines dropped 21% during the same period, and the number of ad pages sold fell 28%, according to the Times.

Shenan Reed, a founder of Morpheus Media, a digital marketing agency that represents brands including Louis Vuitton and L’Oréal, told the Times:

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.