While blogs continue to multiply on the Internet at the same
rate as wire hangers in closets, reports about blogs and blogging
constitute their own growth category.
The latest report, "Blogs: Betting with House Money," from
Outsell Inc., a research and advisory firm providing
analysis for the information industry, offers one of the most
comprehensive and informative looks yet at the rapidly burgeoning
industry.
What's new or different about this report, says Chuck Richard,
vice president and lead analyst at Outsell, is that with blogging
reaching a critical mass--around 27% of Internet users read blogs
(a 58% increase from February 2004)--it had become clear
navigational tools were increasingly necessary.
"With one-fourth of all Internet users reading blogs, this was a
strong green light that showed blogging in practice is even more
popular and addresses a more basic communication need than had
previously been thought," Richard says.
"There's eight or nine million blogs out there, and innumerable
numbers of tools and services," he adds. "Clients call us regularly
and ask 'who should we use?' We're trying to cut through the
clutter, and point out leading tools and services. There isn't a
ratings or rankings system yet, so we're trying to provide a
clearinghouse for blogs that are relevant and that have
validity."
According to the report, here are two of the hottest blog
trends:
- Promising demographics of blog readers are capturing
advertisers' attention. The Wall Street Journal and
Random House are among those that have run ads through blogs
using services like Blogads. - Large companies like Volkswagen are relying on such
firms as Intelliseek, BlogPulse, Techdirt and
Factiva Insight to analyze blog conversation and
content, and to help them with market research and reputation
management.
Richard says it's the viral or community aspect of blogging that
is one of its most powerful attractions.
"Those in the PR and reputation-tracking areas have jumped on it
because it's a sudden massive source of information," he says,
viewing blogging as a potential goldmine for PR professionals.
"For PR people, it offers the ability to build blogging into
your sources of information, outreach or both," Richards adds.
"With all these ad hoc channels to tap into, it's proved
very useful for product launches and product releases. People love
to comment, criticize and analyze, and it opens up feedback.
Microsoft even has its own professional blogging product and
a blogger on the payroll, which has helped put a more human face on
the company."
The potential, particularly for advertising revenue, is huge,
according to Richards: "It's too important, from a business point
of view, to be ignored."
Contact: Chuck Richard, 650.342.6060, http://www.outsellinc.com