Blog advertising network Adgitize closes

Following the demise of CMF ads, Adgitize is the next blog advertising network to bite the dust.

"Costs to run the business were more than the revenues generated," explained the founder, Ken Brown, in his December 27 announcement.

photo credit: vdaiga

As such, all types of Adgitize members would stop receiving points (converted to cash) after January 1st this year, and by January 10th, payouts and refunds will have been sent to those who indicated valid PayPal addresses.

Adgitize had been in business for 3 years and was lauded by blog advertisers for the network's ability to deliver world-class advertising on a blogger's budget.

For a flat fee of $14 a month,  advertisers enjoyed instant traffic correction and rebates for page views and blog visits. Publishers who did not spend on advertising were also given point incentives for updating their blog, visiting other member's sites, referring advertisers and posting on the forum.

The shut-down of Adgitize is sad news for the owners behind the 17,000 registered blogs in the network, but it did not come as a surprise. Keeping the fees low and the incentives generous was simply not feasible for the long-term survival of Adgitize as a business entity, pointed out Plin, an Adgitize member and the author behind My Frugal Ways.

In November 2009, Adgitize increased its monthly advertising fee to $24 but when many advertisers opted out of the service, the network rolled back the fee to $14 a month after. In July 2011, points for forum posting were removed.

In September 2011, prices for second ads were reduced in an attempt to entice members to advertise more blogs with the network. Adgitize needed at least 200 ads to make the system work, revealed Brown. This target was never reached. During the mid-2011, there were fewer than 170 ads running in the network.

By December 2011, Brown announced that Adgitize would be shutting down.

Bloggers are now unsure where to turn to next for cost-effective advertising. One thing is for certain though: Adgitize and Ken Brown will be greatly missed.*