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29 February 2008 @ 4pm


Technorati to Launch Blog Ad Network?

Continuing a Friday full of rumors and little real news, TechCrunch is reporting that blog search engine Technorati is going to shift its focus towards becoming a blog advertising network:

Through a variety of sources we’ve confirmed that Technorati is making plans for a major shift in it’s going forward strategy, and is also considering a number of corporate development transactions.

First, they’ve been pitching venture capitalists on another round of financing. That’s not surprising – their last round, $10.5 million, was in June 2006. The company has raised a total of just over $20 million, and given that they have 25 employees, it’s time for another round. But we’ve also heard that they’ve hired Montgomery & Co. to shop the company to buyers, simultaneous to their funding pitches.

If this turns out to be true, it would be an interesting development and probably a smart move by Technorati. Technorati has been through some tough times lately and none of their new products were very useful and/or gathered much mindshare. And even their old core business of blog search is not getting much attention anymore.

As a blog search engine, Technorati has clearly lost market share to Google’s blog search, but it does sit upon a wealth of information. As Michael Arrington rightly points out in his post, Technorati tags are still being used by pretty much every blogger and they would be a great way for Technorati to target ads.

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