According to the Center for Media Research and the PQ Media's Alternative Media Research Series, ad spending withing blogs, podcasts and RSS feeds grew to $20.4 million by the end or 2005, a 198.4% increase over the 2004 level. Spending on blog, podcast and RSS advertising is projected to climb another 144.9% in 2006 to $49.8 million.
The executive summary of the report goes on to highlight the following key findings:
- User-generated media remains primarily national in scope with 98.1%, or $20.0 million, of all advertising spending coming from the broader market in 2005
- Advertising networks and click-throughs are the largest ad insertion methods, generating $8.0 million and $7.8 million, respectively
- Blog advertising accounted for 81.4%, or $16.6 million, of total spending on user-generated online media in 2005, but blog ads will comprise only 39.7%, or $300.4 million, of overall spending in 2010
- Podcast advertising totaled only $3.1 million in 2005, but is projected to reach $327.0 million in 2010, when it will account for 43.2% of all user-generated media advertising
- Spending on RSS (Really Simple Syndication) advertising totaled $650,000 in 2005 and will grow to $129.6 million in 2010
- Total spending on user-generated online media is forecast to grow at a compound annual rate of 106.1% from 2005 to 2010, reaching $757.0 million in 2010
- Technology was the largest single category at $4.0 million in 2005, due primarily to the technology-savvy early adopters of user-generated media
- Auto was the second largest marketing category, generating $3.9 million in 2005, as car manufacturers utilized user-generated media to market their higher-end models to the "influential" demographic
- The media industry spent $3.2 million to advertise in user-generated media in 2005, as the industry tried to capitalize on its advanced knowledge of the consumer shift away from traditional media
Top drivers of the above trend include continued media fragmentation, perceived ineffectiveness of traditional advertising, and the desire to more effectively reach the 18-34 year old market.
Excellent post. Could not have said it any better myself. Hat's off to a post well said.
Posted by: Podcasting Directory | May 13, 2008 at 10:09 AM