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April 21, 2007

PayPerPost Purchase

Hhhmm. This is interesting, those nice folks at PayPerPost will be announcing next week that they've bought a company. They are, as you will know, the people who run the advertising system on blogs.

Now, they've not announced which company they're buying, nor what it will mean for Posties like me so perhaps it's time for a little speculation?

From a business point of view there's two things they might be trying to do. The first is to consilidate within the sector, to purchase another of the (much smaller) companies that offer a similar service, offering advertisers the opportunity to places ads upon blogs. Whether they'll do this or not I'm not sure. They are by far and away the market leader at present. The others are much smaller, have no where near as good a system or the breadth of bloggers and advertisers in the system. Any blogger or advertiser is free to use one or more of the companies, so there wouldn't be that much of an additional impact.

On the other hand it might be that one of them is offering themselves very cheaply, thus making such consolidation worthwhile.

The other idea might be to extend the company's reach into other markets. At this point, given my general techno-luddism, I have to say I have no idea. So I guess we'll have to wait for the announcement, eh?

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April 21, 2007 in paid blogging | Permalink

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