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Blog Watch
News Watch

  1/3/2005


A picture named ForSale.jpg

FOR SALE - Real Estate Blog

In the midst of our discussion on the Long Tail, I happened to be talking to a knowledgeable source regarding Fairway Advertising: the billboard people who also happen to own a chain of 40 plus newspapers. 

While discussing our new Scenic Corridor in town, which apparently can be zoned for industry but not billboards, a side comment was tossed out regarding the newspaper biz being in the dumper the last few years but that conversely the last three years have been exceptionally profitable in the billboard biz.   Being of the economic/political persuasion that I am, I immediately countered with my own comment in passing, "Sure is easier to turn a profit when government is restricting the supply (and your competition) while the demand continues to increases for your product."

That was last night.  This afternoon I finally bothered to pick up last week's Rhino while having lunch at Earth Fare with the South Carolina State Chair of the Constitution Party who is visiting in-laws.  I noted two things: the obvious above the fold picture of Kay Cashion's illegal billboard coming down and the extreme lack of bulk of the paper exhibits when it is not carrying the real estate advertising section.

Now the wheels are turning:  Some local bloggers are wondering how to turn a buck on their efforts...the N&R which continues to loose ad revenue as people move away from the daily paper is now thinking about hosting a blog portal...long tail bloggers fantasize on gaining some of the N&R's shrinking hard copy advertising base. 

Meanwhile, looking at where we spend our money on a daily basis, Wal-Mart, Home Depot, Shell, Applebeefs, etc. it is easy to see why the big ad revenue is not going in large quantities to local papers or even their websites.  What do the local papers really carry in the way of ads?  Using the Rhino as one of my data points I will guess at these being the top grossers: Real Estate, Car Dealers, Groceries, Local/Regional Department Stores.

Now, if I am right and that is the big money advertising in the local market, then the blogs that offer something to these advertisers would be the most likely to gain business model scale ad revenue.  OR....

Why not go to the advertisers' target audience direct? Who needs the advertiser as a middleman?  How about a local blog or blog portal catering to homebuyers?  Think about how you buy a home now, particularly if you are from out of town.  You contact a top real estate company, find an agent you like and start looking at maps and listings.  By law (note to self: that means a government created business opportunity) real estate agents can't tell you anything about the neighborhood you are looking at beyond some general facts.  Imagine now a local blog or blog network that you can peruse for information and local opinions on a neighborhood.

As an example, if I were considering buying a home in the Aycock neighborhood, I would certainly consult David Hoggard.  From his blog I know that I could get valuable insight into the issues in the area as well as possibly my potential neighbors. 

Again, a real estate agent is barred from giving you this kind of information.  Now, if I was from out of town or didn't know David, but knew him only from his blog, might I be willing to pay David about the same rate as I would a home inspector for his knowledge of the neighborhood?

Imagine being someone transferred into a community and having to make relatively quick decisions on a neighborhood to locate in.  Yes, it's a decent bet that price of this much and a home in this school district will get you started, but imagine the value of being able to learn whether your prospective new neighborhood is deemed by the locals to be waxing or waning in popularity, what zoning and development issues are in the mix and of course the ultimate potentiality --- what your neighbors are like.  (I don't recommend blogging that!)

Perhaps the real money (if any) in local blogging will be made by offering something that is not already out there.  Simply trying to live on the tail of an existing business model does not seem as exciting to me as using this blog thing to create a whole new service that does not currently exist...AND that thanks to various levels of government intervention freezes out your established competitors.

Like the home in the picture above?  I can tell you more about it...

7:38:25 PM      comment []




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