The move comes about two months after the company told authors to explain that some of their posts are paid for by advertisers. In addition to the graphic, the disclosure buttons also include a rollover ad that displays a company logo, and an invitation for other bloggers to get paid for writing about the product.

CEO and founder Ted Murphy said the move marked the "next step" in the service's efforts at full disclosure. "The bloggers are happier because it provides them with a clear way to disclose, the readers are happy because it provides them transparency, and the advertiser gets some additional branding from the bubble ad," he said.

Jim Nail, chief strategy and marketing officer for Cymfony and member of the Word of Mouth Marketing Association board of directors, said that the new buttons could provide the appropriate level of transparency, provided they were used appropriately. "There's certainly a lot to work with here," he said. The ultimate issue, he said, is whether consumers realize particular posts are being sponsored. "That's really the only point that matters in disclosure," he said.

Still, many industry observers are critical of PayPerPost, accusing the company of trying to buy good recommendations from bloggers. At the recent AlwaysOn Media conference in New York, David Weinberger, co-author of the "Cluetrain Manifesto," described the company as "corrosive" to the conversation between and among consumers and marketers.

Media guru Jeff Jarvis, author of the blog BuzzMachine, said that the move toward transparency was a good one, but major issues remain about the company. "The real issue is they're trying to buy the voice of these bloggers," he said. "Once your voice is bought, you don't own it any more--the sponsor does."

Murphy said that PayPerPost, rather than damaging the blogosphere, has helped bloggers monetize their content and write more frequently. "Bloggers that use the Pay-Per-Post system are blogging more than before," he said. "And they're putting more time into their writing than ever before."

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