Advertisers Spending More On Alt.Media

    April 14, 2006
    WebProNews Staff

Blog ads, podcast ads, RSS ads, oh my, it could be a $50 million dollar market by the time 2006 comes to an end, well over the $20.4 million spent for advertising on those syndication methods in 2005.

Where do you plan to spend your advertising dollars on alternative media? How have you included ads in your syndicated media? Tell us about it at SyndicationPro.

If you think you are seeing and hearing a lot more advertising in your favorite blog or podcast or RSS feed, you could be right. And you may wish to brace for even more of them.

The Center For Media Research reported on PQ Media’s study of Alternative Media. That report found a small but growing ad market for all of that user-generated content. Of course, some of that content is generated by traditional content providers too.

Advertisers seem to share the same issues and needs. Their audience has been scattered across all of that alternative media and other outlets. A 30-second TV ad has its place, but probably isn’t reaching as many potential customers as marketers would like.

Worst of all, the much coveted 18 to 34 age group does not covet the traditional ways of passively sitting back and waiting for content to arrive. They are actively seeking out and sending around video content online, with some of the more interesting pieces attaining viral status, a life of its own, as it circulates from inbox to IM to blog entry.

Pity the poor advertiser, then, all dressed up and nowhere to spend its ad dollars effectively. They are willing to give just about anything a shot. PQ Media noted that ad-networks and click-throughs generate $8 million and $7.8 million in spending respectively. PQ Media noted those are the largest ad insertion methods.

Technology, auto, and media companies dominated the top three categories of ad spenders on syndicated media. They and other advertisers will be paying big bucks by 2010 according to PQ Media.

– 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

Those that provide methods of publishing content and advertising want to help their content-generating users place ads in this alternative media. Yahoo has been ramping up support efforts for its Publisher Network by launching a blog for it and recently posting on inserting ads into RSS feeds. That would help Yahoo extend the reach of its ad network from just the website hosting content to the feedreaders of users who subscribe to those sites without visiting them often.

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David Utter is a staff writer for WebProNews covering technology and business.