04-13-06
Category: Blogging and RSS, Internet Marketing
Key points:
- The advertising market for blogs, podcasts, and RSS feeds surpassed $20 million last year, but is expected to grow 144% in 2006.
- Podcast advertising is expected to account for a substantial share of the market.
- Although these numbers represent a tiny fraction of the overall media advertising market, they can be interpreted as indicators of a rapidly growing industry.
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Excerpt - For full article, please visit Brandweek.com.
Blog, podcast and RSS feed advertising are the fastest-growing segments in alternative media, according to a study released today by research firm PQ Media.
Combined spending on the three surpassed $20 million last year, the study found. Spending rose by almost 200% in 2005, and was expected to grow by another 144% in 2006, the report claimed. While these numbers show a fast climb upward, the spending on podcasts, RSS and blogs remains well under 1% of the market as a whole.
“While they are the fastest growing, they are also the smallest,” said Patrick Quinn, president of the Stamford, Conn.-based firm. “But that shouldn’t take away from the broader trends of money being shifted into new media.”
Blog spending got the fattest share of advertiser’s dollars, with over $16 million being reported spent. But podcast advertising, which didn’t even exist until 2004 and earned more than $3 million last year, is forecast to take the lion’s share of the market in years to come with a projected 2010 revenue of over $300 million, the report said. “We’re talking about triple digits going forward,” Quinn said.
The findings are the first installment in a series of reports that will attempt to produce reliable data on various forms of alternative media, which can range from satellite radio to event marketing to product placement, according to Quinn.
The numbers are yet more evidence of the growing promise that user-generated media holds for marketers, Quinn said yesterday, as the perception that traditional forms of advertising no longer work takes hold.
Full Article
