Blogs, Pods and Really Simple Stuff Deliver Advertising At An Increasing Rate

April 13, 2006 - Center for Media Research

The first installment in PQ Media's Alternative Media Research Series, the Blog, Podcast and RSS Advertising Outlook, reports that advertising spending on user-generated online media - blogs, podcasts and RSS - did not begin until 2002, but this combined spending has grown 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.

From a broader alternative media perspective, concludes the report, continued audience fragmentation, the perceived ineffectiveness of traditional advertising, and the desire to reach elusive younger markets are leading more marketers to take a serious look at new media opportunities. In the user-generated media markets, more advertisers are seeing the potential to reach younger demographics, as well as the lucrative influential markets, with media that tend to be highly engaging. On the downside, user-generated media have a host of technology and measurement issues that need to be resolved before these media can reach their full potential.