‘But blogs are also merging with mainstream web media, they are used a lot on newssites/papers, and to complement corporate websites, or simply used as the medium/technology on which websites are set up.’

Absolutely. Technorati actually says as much in their state of the nation report. “…as the Blogosphere grows in size and influence, the lines between what is a blog and what is a mainstream media site become less clear. Larger blogs are taking on more characteristics of mainstream sites and mainstream sites are incorporating styles and formats from the Blogosphere. In fact, 95% of the top 100 US newspapers have reporter blogs.”

Advertiser’s problem is mainly the question of reach. How do they get to be on thousands of blogs? There are so many competing ad networks now. Any many blogs don’t have any ad code embedded at all.

How do advertisers reach all those thousands of users on thousands of blogs?

Yes, interesting that. But blogs are also merging with mainstream web media, they are used a lot on newssites/papers, and to complement corporate websites, or simply used as the medium/technology on which websites are set up. So maybe along with the still increasing popularity of old-school blogging, what we are seeing is another merging of technologies. Using elements of the blogging medium where appropriate – and undoubtedly also where inappropriate – in other websites.

Anyhow, guess advertisers will have to get blogging. A lot.