Online Advertising from a different perspective

In class, we examined the process involved with advertising online in terms of the value to the companies who want to advertise and the payments toward the websites that host the advertisements. But what happens when certain websites can't find companies who want to advertise on their website? This problem arises when these websites do not have a large enough audience. On the other hand, advertisers want to target the audience of these music blogs, but the market was so broken up that marketing investments are not profitable enough.

This article, http://money.cnn.com/2008/06/16/technology/music_blogs.fortune/index.htm, discusses the network effect of music blogs. The solution to this problem is an ad network. The more music blogs that are part of the network, the more consumers reachable through the network, the more advertisers will be willing to use the network. Such networks have become more and more common as a way for advertisers to reach consumers on the Internet, and networks such as the music blog network, which aim to target a particular set of consumer interests, are a great way for advertisers to reach a large base of customers through a single outlet.