Facebook likes to trumpet the value of "trusted referrals"--recommendations and ads with the endorsements of members of your friends list. But a new study from Jupiter Research, commissioned by analytics company BuzzLogic, says that consumer purchases are more likely to be influenced by what they read on a blog versus what their social-networking rosters recommend.
Half of all those surveyed who identify as "blog readers" (people who read more than one blog per month, a fifth of total survey respondents) say that blogs are important to them when it comes to making purchasing decisions. But they don't necessarily find them to be all that reliable: only 15 percent of blog readers, and five percent of all those surveyed said that in the past year they had trusted a blog to help them make a purchase decision.
That's still higher than the number of people who said they used social-network recommendations, though: ten percent of "blog readers," and four percent of all those surveyed.
Results of the survey are similar when it comes to advertising: a quarter of "blog readers" say they trust ads on blogs that they read (versus 43 percent on "familiar" or mainstream media sites), but a slightly lower 19 percent say they trust the ads on social networks.
So what does all this mean? Well, it's good news for BuzzLogic, which tracks blogger influence for clients and has seen blog advertising pushed aside a bit on Madison Avenue in favor of "appvertising" and social ads. Aside from that, the real take-away point is that the results seem to indicate most blogs are less mainstream than you might think: Only a fifth of respondents say they read a blog at least once a month.
That's actually really surprising--or maybe blogs have become so ingrained on the Web that people don't even know they're reading them.
BuzzLogic, a start-up that , has pushed its ad network out of beta to a full release.
The "Conversation Ad Network" debuted in beta mode in June and uses BuzzLogic's influence-tracking technology as a way to draw in both advertisers and bloggers. Advertisers are promised access to the most influential bloggers in their niches, and bloggers with that influence are offered more lucrative deals.
Prior to launching the ad network, BuzzLogic purchased ActiveWeave, manufacturer of browser plug-in BlogRovr, to shape it into a tool for clients. Then, during its beta period, the BuzzLogic network enticed bloggers to join by offering them guaranteed $2 CPM (clicks per thousand impressions) ad rates.
"We've seen a strong correlation between campaign effectiveness and the quality blogs our technology is able to surface since launching our targeting platform last year--now we're expanding our targeting approach to our own network of sites," BuzzLogic CEO Rob Crumpler said in a release. "In this fragmented media environment, it has become clear that a popular site isn't necessarily influential when it comes to niche subject areas. Many lesser-known blogs have the capability to deliver great advertising results, they're just not getting paid for it."
There are seemingly zillions of ad networks out there, but BuzzLogic's technology for niche influence targeting gives it a leg up. The company said that over 500 sites have already joined the network in its beta phase.
BuzzLogic, which tracks discussion of clients' companies across blogs and social-media sites and then pinpoints the most influential commenters, has announced plans to acquire software start-up Activeweave for the technology behind a browser plug-in it developed.
That chunk of code is BlogRovr, which produces content from pre-selected "favorite blogs" as Web sites are displayed; if the user loads eBay, for example, a BlogRovr tray within the window might display what tech blogs have been writing about the auction giant recently.
Financial terms were not disclosed, but BuzzLogic's motives were: It wants to apply the BlogRovr technology, which currently monitors about 200,000 blogs, to the services it offers clients in its Conversational Targeting ad program. This BuzzLogic service identifies the most influential bloggers talking about a certain topic to help advertisers figure out where to put their name out. After the acquisition, Activeweave CEO Marc Meyer and Chief Technology Officer Jean Sini will stay on board.
"Activeweave lets (Web users) see the tracks of the people around them, and lets them knowingly lay tracks for others," tech veteran Esther Dyson, an Activeweave investor, explained in a statement from the two companies. "The online world around each user suddenly becomes more relevant and more personal. This acquisition helps BuzzLogic make this dimension available to advertisers."
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