Transparency vs. Payola: Weighing Risks

PayPerPost: Worth the risk?

Over at the Center for Citizen Media blog, I've joined an interesting conversation concerning the thorny issue of payola in online media. See: PayPerPost: A Cancer on the Blogosphere, or Merely Semi-Sleazy? by Dan Gillmor.

Background: The controversial online advertising service PayPerPost attracted considerable blog and media attention after it recently got $3 million in venture funding. In a nutshell, PayPerPost is an automated system where companies can advertise their sites, products, services, or brands through a network of approved bloggers who get paid $2 per qualifying post. That is, bloggers who sign on to PayPerPost agree to write about those advertisers.

PayPerPost reviews and approves those posts, which can be required to be positive. Although PayPerPost urges its bloggers to be "honest," it discourages them from disclosing their relationship with PayPerPost. So, ethically, everyone involved appears to be on thin ice -- but when did ethics ever have much to do with the advertising business?

...Anyway, Dan Gillmor's post on the PayPerPost flap nudged me to consider the issue of payola more closely. Here are a couple of comments I contributed to that discussion...