Chitika/UT Dallas Study Puts $500 Million in Top 50K Blogs

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Quitting your day job to become a pro blogger is no longer a pipe dream.

If online advertising is like advertising in a mall, advertising in the blogosphere is like advertising in a country club.

Chitika releases the industry's first analytic report estimating the ad revenue in the blogosphere. According to the study, the top 50,000 blogs collectively earned $500 million in ad revenue in 2006. This is the first release in a series of studies that Chitika will publish monitoring the growth and power of the blogosphere.

According to the study, ad revenue in a blog is more sensitive to the rank of the blog than what one would expect in a typical Zipf Law 80/20 curve situation. One reason for this may be the social value of advertising in a blog. "If online advertising is like advertising in a mall, advertising in the blogosphere is like advertising in a country club." says Professor Vijay Mookerjee of the University of Texas, Dallas, TX.

Key Findings:
· The top 1% accounted for approximately 20% of the total revenue.
· The top 5% accounted for approximately 50% of the total revenue.
· The top 10% accounted for approximately 80% of the total revenue.
· The top 15% accounted for approximately 90% of the total revenue.

The Chitika Blog Dollar Report can be found here:
http://chitika.com/blogdollar/UTDallas-Chitika-BlogDollar-Research-Report-FullVersion.pdf

This study was done as an initial attempt in establishing the advertising revenue of blogs. Suggestions for alternate methods of estimating these numbers as well as ideas for future studies are welcome and encouraged.

About Chitika:
Chitika is the "blog dollars" company, the leading blog advertising company on the web today providing bloggers the opportunity to harness their independent and original content and opinions to monetize the traffic to their site. Chitika offers retailers a new channel to merchandize their products and consumers better access to a broader base of independent expert advice from the blogger community. Founded in 2003, Chitika has built a network of more than 15,000 participating blogs and websites, serving one billion ads a month and is adding new members daily.

Media Contacts:
Karla Escolas
Marketing Manager
Chitika, Inc.
http://www.chitika.com
T: 508.449.3870 x978

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Karla Escolas
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