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Technorati To Launch Blog Ad Network?

Technorati is now looking into another face-lift: this time as a blogging ad network, a report said Friday. The company, which saw its blog search thunder stolen by Google, had revamped its image as another Techmeme or BlogRunner. Now CEO Richard Jalichandra wants to take on the likes of AdBrite.

AdBrite, founded by Philip “Pud” Kaplan, operates a blogging ad marketplace with between 25 and 45 employees. The company has raised about $35 million in venture cash.

The network will avoid competing against John Battelle’s Federated Media, which has a roster of only bigger bloggers. Instead, the model is a self-serve one where Technorati would only help bloggers and advertisers connect, according to Tech Crunch’s Michael Arrington, citing an unnamed “variety of sources.”

Pro Blogging News requested a Technorati comment on the report. So far, there has been no response.

Arrington speculates Technorati tags could be converted into a handy advertising tool. Will Technorati succeed in an already crowded online ad market? The jury’s still out on the answer, although it can only help bloggers seeking another alternative.

In an interview Friday, Arrington said he’s able to break these rumors (oops, news stories) by often going with a single source. This time, “multiple sources” were employed, but again, no indication about the sources’ credibility. We can surmise they come from two possible camps: Technorati or a venture capital insider.

Jalichandra may be feeding Arrington the tidbit to pump up potential for more VC capital, after its existing $20 million in funding. The company may have also leaked the information in order to sweeten the pot for any buyout offers. That leads to the second possible source of the story: TechCrunch said Technorati has hired investment firm Montgomery & Co. to “shop around” the blogging company. Knowing that Technorati may finally have hit upon a real revenue winner would likely attract more bids.