Just Blogging My Thoughts...

Thursday, April 13, 2006

Blogs, Podcasts and RSS advertising

Combined spending on blog, podcast and RSS advertising bolted 198% to $20.4 million in 2005 and is expected to grow another 145% to $49.8 million in 2006, according to PQ Media's report 'Blog, Podcast and RSS Advertising Outlook'. Blog advertising accounted for 81%, but will only comprise 40% of expenditures in 2010. Podcast advertising, meanwhile, reached 15% in 2005, but is projected to become larger than blog advertising. RSS advertising, non-existent until mid-2005, generated $650,000 in 2005.

Blog, podcast and RSS advertising are being driven by some of the same factors boosting the growth of the overall alternative media sector: continued audience fragmentation, the perceived ineffectiveness of traditional advertising and the elusive but coveted 18-to-34-year-old demographic.The relatively small size of these markets is an indication of the newness of the media, the lack of standard metrics and various technology issues. Technology, auto and media brands are the most active in these user-generated media, accounting for more than half of total advertising spending in 2005.

Total spending on user-generated online media is forecast to grow at a compound annual rate of 106% from 2005 to 2010, reaching $757.0 million in 2010, according to Blog, Podcast and RSS Advertising Outlook. By comparison, the overall alternative media industry including, among others, markets such as branded entertainment, digital out-of-home advertising, mobile marketing and video-on-demand marketing, is projected to grow at a compound annual rate of 14.8% in the five-year period to $253.7 billion in 2010.

Source: PQ Media's report 'Blog, Podcast and RSS Advertising Outlook'


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