Top 50k blogs had $500 million in 2006 Revenue: TechCrunch has an interesting link to a study performed by a couple University of Texas Ph.D students in association with Chitika. The study claims that the top 50,000 blogs made somewhere near the astronomical total of $500 million in revenue in the 2006 fiscal year. The linked PDF is very short and the double exponential model that was used to fit (model) the values looks sloppy enough in the short description that it would not stand up well to a peer review. Chitika’s presence and promotion via this study is also quite evident.
Frankly, I am surprised that The University of Chicago has allowed their name to be publicly associated with this study considering their heritage and authority in the statistics and economics educational disciplines [EDIT] I stand corrected, the study is from the University of Texas. Thanks AJay in the comments for the catch.
However, I would be a fool to say that there is no money to be made in blogging. GigaOM, TechCrunch, Read/WriteWeb, ProBlogger and other blogging powerhouses are proof enough. I do agree with some of the comments on that post in that revenue generated through such vehicles as Chitika and other ad sales might not be a good representation of blogging revenue and the fact that they used Technorati to choose the top blogs also make the results suspect. For me the communication and the relationships that result from blogging bear the most fruit. An interesting look at the business of blogging nonetheless.