IZEA's Ted Murphy Suggests He Performs Better Than The A-List Blogs

IZEA (formerly PayPerPost) CEO Ted Murphy is on the offensive today. Last night he asked me on Twitter to review a post on the IZEA blog regarding performance of his paid blog network versus an advertising campaign on ReadWriteWeb (RWW), an "a-list" tech blog. If you read only a few posts today, his should be one of them. In general, Murphy's analysis could work for any display advertising.

He begins by explaining that he purchased a one-month advertisement on ReadWriteWeb for $3,000 and then purchased $3,000 worth of paid posts within the IZEA network. The paid posts came from 220 publishers of all sizes across the network.

His analysis then goes on to determine that 725 clicks came from RWW over the month while his paid blog posts delivered 832 clicks and that the paid blog posts will continue to return some value over time as the posts live on forever (whatever forever means in Internet years). 

Murphy also notes that by posting the "job" on his network, he had at least another 500 of his paid bloggers check out the company - that's already nearly more than RWW sent. He ends the analysis with the following statement, "people clicking links in sponsored posts have a genuine interest in the site they are clicking through to." The average Internet user has no idea what sponsored means. I've tried to explain this to Jason Calacanis as well but shrugged it off. 

Was IZEA's product the right one for the RWW audience? For example, last month TechCrunch ran a sponsor ad for car tires. Do people looking for the latest tech news care about car tires? Are they in the "zone" to go purchase a set of 170R15s? We know nothing about the people who visited from either RWW or the purchased blog posts. How many from either actually "converted"? Murphy leaves this out.

While Murphy's analysis isn't spot on and there are some huge holes in his theory, he is pushing the conversation of display advertising versus paid posts a step further. It's a good discussion to have. And for clarity, I am not in favor of paid reviews. I am totally in favor of advertorials on blogs. Mark my words that by the end of 2008 we will see advertorials on blogs as a normal course of business.

Murphy makes a challenge at the end to Pete Cashmore, Robert Scoble and Jason Calacanis. He wants to run a paid post on one of their sites and compare the results to a wide campaign using the publisher network on IZEA. I assume he won't get any takers for the test.