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Ad Spending Up for ‘Alternative Media’

Posted by Melanie Phung on Saturday, April 15, 2006 at 7:51 pm

WebProNews reports on a study from the Center for Media Research about the growth of advertising in user-generated media:

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.

Other findings highlighted by the Center For Media Research:

  • Blog advertising comprised 81.4%, or $16.6 million, of total spending on user-generated online media in 2005; blog ads will reach $300.4 million, but only account for 39.7%, of overall spending in 2010
  • Advertising networks ($8.0 million) and click-throughs ($7.8 million) are the largest ad insertion methods
  • Total spending on user-generated online media is forecast to grow at a compound annual rate of 106.1%, to reach $757.0 million, by 2010
  • The media industry spent $3.2 million on advertising in user-generated media in 2005

The report points out that while user-generated media is (by which I mean “are”) a great opportunity to reach a younger and more engaged audience, advertisers still face many challenges that need to be resolved before these media are fully deployable and measurable.

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