Blog ad sharing network Entrecard is entering the paid ad space with the launch of a new CPM based ad network.
According to Entrecard, 50% of shared ad impressions will be open to third party advertisers. Currently all ads in the network are shared between users with a credit system in place to allow for specific targeting; not dissimilar to a system like Bartercard. With the new paid ads, Entrecard will buy impression credits from existing members, allowing them to convert credits to cash.
Entrecard notes that the inclusion of paid ads will overcome a fundamental flaw with the current system: credit inflation.
The Entrecard economy has been in a state of inflation since day one. Every day, more credits are created than are deleted. As of writing this, there are 44 million credits in the Entrecard economy, and we’re adding more each day. This is not sustainable, and so it has become clear that we need a more efficient way than advertising taxes to eliminate credits from the economy. The good news is that if this works, we’ll be able to lower the advertising tax.
Allen Stern at Centernetworks notes that some users aren’t happy with the change “because they won’t be able to approve or decline ads in the same way as they can currently.”