PayPerPost: The Consumer Generated Advertising Revolution Has Begun
Well it's been over a month since PPP launched and the blogosphere hummed with PPP-related class warfare between the elite and mainstream bloggers. The score was something like 972-12 in favor of the mainstream bloggers and the video/photo publishers on YouTube/Flickr were unanimous in their support for PPP's cross-domain, cross-media consumer generated advertising platform. Sure some of those advocates were paid to share their opinions but isn't that the ironically purest form of support for a platform like this?
I've registered for the platform as a blogger and advertiser and adoption is growing fast on both sides of the marketplace. I've also searched for paid posts across the blogosphere and find a more intelligent, mature, open adoption than the soulless-shilling originally feared. In fact, I see quality organic posts growing alongside sponsored posts by PPP adopters. At the same time, I see domain-specific social networking sites like MySpace and YouTube trying to play an advertising game that doesn't fit their core competency (those guys need to innovate social networking before Friendster.com and Multiply.com sneak up and steal their users).
So what does all that tell me? The Consumer Generated Advertising revolution has begun and it's time to choose sides.
(unsponsored post)
I've registered for the platform as a blogger and advertiser and adoption is growing fast on both sides of the marketplace. I've also searched for paid posts across the blogosphere and find a more intelligent, mature, open adoption than the soulless-shilling originally feared. In fact, I see quality organic posts growing alongside sponsored posts by PPP adopters. At the same time, I see domain-specific social networking sites like MySpace and YouTube trying to play an advertising game that doesn't fit their core competency (those guys need to innovate social networking before Friendster.com and Multiply.com sneak up and steal their users).
So what does all that tell me? The Consumer Generated Advertising revolution has begun and it's time to choose sides.
(unsponsored post)
| 08-25-06 UPDATE: I guess this post struck a nerve because PPP blogged about it and even created a PPP opportunity around digg'n it. Now other bloggers are chiming in at their blogs and digg. The revolution may not be televised, but that won't stop the world from participating via CGM... |
Labels: payperpost
Posted by VC Dan | 8/23/2006
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Comments (13)
It would be interesting if a big ad network such as Google got into the game... I wonder what the anti-PPP bloggers would say to that and if Google's move would give credibility to consumer generated advertising as you nicely describe it.
There may be no way to make advertising palitable again short of letting consumers produce the advertising. Advertising as content, much like MySpace's concept of "Brand Friends" it might be a revolution indeed.
Jean,
A set of the elites would be more comfortable because Google is a known commodity and they want to continue being invited to the GooglePlex, but another set would scream even louder -- especially the hatching G-haters who enjoy tearing down anyone who has gotten 'too' successful.
That's one reason Google won't be the leader on something like this, but could buy later. Another reason is that this model is inherently a play on leveraging/empowering people behind keyboards/microphones/cameras and Google routinely prefers automated models to ones where people are part of the delivery. Google chose their path a while back when they differentiated from Yahoo as the "superior search algorithm guys". Even now Yahoo is betting heavier on human network effects (e.g. del.icio.us) than Google.
I think that begs the question of Yahoo entering the space, but again they will probably wait for someone else to take the arrows before buying their way in. The question then becomes whether PPP will have the same confidence in their model that GoTo/Overture did when they shunned M&A on their way to defining the space -- and eventual acquisition by Yahoo for $2B.
Regardless, my reading of the last 45 days tells me Yahoo/Google aren't needed to legitimize the space. Search for PayPerPost references and you'll see it's happening from the mainstream bloggers anyway. The elites have gone onto the next topic, licking their wounds from a PPP commenter backlash they didn't expect. They have advertisers to worry about, you know...
You have written a very good article and covered many of the issues very thoroughly and Dan's ironic comment about the elites worrying about their advertisers is a direct example of the hypocrisy of the debate so far.
The bottom line is that consumers thoughts and knowledge are valuable commodities. People have been giving away their knowledge and perspective, giving it away to elites and many corporations without receiving an equitable benefit in return.
More and more internet models are popping up where commenters, bloggers, writers, reviewers and others are receiving some form of reward for their perspective. PPP is an example where the consumers applied perspective and knowledge is compensated almost up front(30 days from post).
I do think Dan is onto something with the differentiation between the culture fit for this type of model in Yahoo v. Google, however if Google can find a way to automate this into an algorithm they will.
Their first stab at this was Adsense. I'm sure we will see an Adsense 2.0 someday that will take a step or two in this direction.
(Unsponsored Comment)
Now I need to get back to work on my Sponsored Posts! ;)
Dan,
Some very insightful comments.
I agree that Google would not get involved in this unless they decided to purchase it down the road. I could see a purchase because it would be a nice add on to their existing blogger product. Integrate the 2 and you'd have a powerful platform.
Those who commented poorly about PPP don't really care about PPP, but they should. An article I read recently quoted Michael Arrington(TechCrunch) saying that he knows he's riding the Web 2.0 wave. I wonder if PPP will help or hurt the wave he's riding.
Yes it must have done something because they are offering a nice sum to talk about your post! :) That's good for us though!
I created that video for a PayPerPost opportunity! http://juddconnection.blogspot.com/2006/07/my-payperpost-video-testimonial.html
I never thought I would have seen it circulating around the web! Great post.
Yes, props to Joshua for a video that gets the PPP message across with quality and humor. I love the FedEx shirt!
Dan,
I just started a PayPerPost forum since I was tired of waiting for PayPerPost to do it. I'm spreading it around to a few of the PayPerPost bloggers and advertisers and then I'll post it on the PayPerPost blog.
I'd love to see you on the forum. Your comments are always insighful.
Let me know what you think of the forum and any ideas on things I should do to make it better.
PPP recently announced their forums at . Everyone seems pretty excited.
Way to light a fire under them Techie!
Great post, Dan! And kudos for the Digg & feature on PPP. Personally I find it most interesting how the PPP Bashers blog around a page full of sponsored ads as they badmouth PayPerPost. The negative article on BusinessWeek titled Polluting the Blogosphere, for example, was covered by a fly-in ad and crowded on every side by large flashing image ads!
I look forward to continuing to read along here - great blog!
Best,
Lynn Terry
Thanks Lynn -- your article on this topic was even better. Keep up the great bloggin' and don't be a stranger!
One of the main reasons someone would pay to post is the link back to their site. I wonder when/if Google and other search engines will implement counter measures to combat this new form of promotion.
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