June 23, 2007
@ 03:32 PM

THEN: The PayPerPost Virus Spreads

Two new services that are similar to the controversial PayPerPost have announced their launch in the last few days: ReviewMe and CreamAid. PayPerPost, a marketplace for advertisers to pay bloggers to write about products (with our without disclosure), recently gained additional attention when they announced a $3 million round of venture financing.

The PayPerPost model brings up memories of payola in the music industry, something the FCC and state attorney generals are still trying to eliminate or control. Given the distributed and unlicensed nature of the blogosphere, controlling payoffs to bloggers will be exponentially more difficult.

Our position on these pay-to-shill services is clear: they are a natural result of the growth in size and influence of the blogosphere, but they undermine the credibility of the entire ecosystem and mislead readers.

NOW: I’m shocked, shocked to find that gambling is going on in here!

The title, which is a quote from the movie casablanca, is what came to mind tonight when I read the complete train wreck occuring on TechMeme over advertisements that contain a written message from the publisher. The whole thing was started by Valleywag of course.

The ads in question are a staple of FM Publishing - a standard ad unit contains a quote by the publisher saying something about something. It isn’t a direct endorsement. Rather, it’s usually an answer to some lame slogan created by the adveriser. It makes the ad more personal and has a higher click through rate, or so we’ve been told. In the case of the Microsoft ad, we were quoted how we had become “people ready,” whatever that means. See our answer and some of the others here (I think it will be hard to find this text controversial, or anything other then extremely boring). We do these all the time…generally FM suggests some language and we approve or tweak it to make it less lame. The ads go up, we get paid. This has been going on for months and months - at least since the summer of 2006. It’s nothing new. It’s text in an ad box. I think people are pretty aware of what that means…which is nothing.

Any questions?