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Many blogs on Glam Network site is like this one
http://allieiswired.blogspot.com/2007/06/george...
This blog also belong to BlogBurst Member Networks, as well as Hollywood Blogads Networks….. What Glam’s promotion and advertising are doing is CLAIMING that the traffic that it SHARED with other Blog-Networks such as BlogBurst and Hollywood Blogads, and many other blog networks, are truly GLAM’s own traffic. It is murky and perhaps in violation federal and state laws against Fraud and False Advertising.
Comscore’s report lumps media properties targeting “women†in one category and ranks them. Their errors are twofold. The first is in ranking many very different media categories in one meaningless benchmark. It should have at least broken it down into sub-categories such as Media Aggregator and Media Creator. Media Aggregator being an entity aggregating the majority of content for which they don’t own the copy-right, such as Glam. Media Creator being an entity that owns the copyright of its contents. Another red-flag is that Comscore only measures and reports traffic for companies that are its clients. The double-counting issue would be more apparent to industry constituencies if Comscore measured all of the publisher properties, not just a subset of the Internet (i.e., clients of Comscore). The other blog networks such as Hollywood Blogads, which shares visitors with Glam, might not be on the radar screen if these networks were not the clients of Comscore. It is an industry phenomenon that awaits a solution, a code of conduct…or regulation.
The issue with Glam seems to be that it aggressively nudges the two irrelevant indicators to create a story for its business valuation! In this blog entry “chief executive Samir Arora said he saw Glam headed toward a $500 million valuation, based on the value of comparable companies.â€â€¦ The only number Samir used to compare Glam with iVillage is the Comscore’s visitor number. But, the truth is that each visitor of iVillage’s website brings 10x or 50x more advertising dollars than that of Glam, the reason being that iVillage owns all ad spaces associated with the webpage and/or visitor. On another hand, Glam Network’s bloggers webpage’s ad spaces are offered to multiple blog networks, as well as Blogger’s direct advertisers. This reduces its earning potential to at least 1/10 of iVillage’s. In additional, for each advertising dollar Glam receives, Glam has to pay a big cut to its bloggers. Glam only earns the advertising broker fee/commission fee in a sense for brokering the advertising sale to its bloggers.
Glam’s aggressive advertising and promotion is heading toward pumping up its valuation for acquisition or IPO. Sounds familiar! The Bubble is here! Or a deja vu of the ERRRRRON, the one that shall not be named. VCs are jumping onto the bandwagon to perpetuate the myth because they expect a windfall from their investment. However, at the end of day, after a few opportunistic players exploit the hype of uncorroborated reports, average consumers, future stock-holders, and Internet professionals are the ones who suffer from the aftermath of the economic bubble…. a roller coaster Internet business climate.
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