Blog, Podcast, RSS Ad Spending to Grow 144.9 Percent in ’06
STAMFORD, Conn.—Combined spending on blog, podcast and RSS advertising totaled $20.4 million in 2005, according to custom media research firm PQ Media. Ad spending in these areas is expected to balloon another 144.9 percent to $49.8 million this year. The study, “Blog, Podcast and RSS Advertising Outlook,” is the result of six months of primary research and the first installment in PQ Media’s “Alternative Media Research” series.
Blog advertising accounted for 81.4 percent of ad spending among the three areas—blogs, podcasts and RSS, collectively termed “user-generated online media” by the study. However, the study predicts that by 2010, blog ad spending will constitute a mere 39.7 percent of overall expenditures, with podcast advertising expected to become the leading revenue-generator among the three areas.
“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,” says Patrick Quinn, president of PQ Media. “Blog, podcast and RSS advertising have demonstrated an ability to reach younger demographics as well as influentials, and the media tend to be highly engaging. These are attractive trends to brand marketers that are focused on return on investment.”
The study also cited technology, auto and media brands as the most active in user-generated media advertising, comprising more than half of total ad spending in 2005.