In-podcast advertising is set to grow to over five times its current value by 2011, according to a new report.
An eMarketer study forecast US advertising spend targeted toward podcasts will reach $240m by 2008 and $400m by 2011. That is despite pessimism over the popularity of podcasts amongst audiences.
Report author James Belcher said:
"Despite an incessant buzz about the medium, regular podcast users are still rare. As such, podcasting is a niche marketing channel; it may be the right niche for some marketers, but it's still a niche.
"Podcast sponsorship uses the medium's strengths: self-selected subscribers, host endorsements and low-waste ad impressions.
"Yet the time and effort required to develop an effective sponsorship will keep podcasting from cannibalizing ad dollars in other channels anytime soon."
Podcast advertising previously grew from just $3.1m in 2005 to $80m in 2006. Previous research on media consumption habits shows podcast subscriptions have not been widely taken up by users, although many have downloaded individual episodes designed to be subscribed as part of a series.
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10:45AM on 23rd February 2007
Those of us actually brokering deals with advertisers have the real numbers on podcast penetration and demographic reach. Until these researchers reach out to those of us that are actually signing deals They will never get a real feel of what is going on in the space.
Director of Product Development at Econsultancy
1:14PM on 23rd February 2007
Hey Todd,
We'd love to see the real numbers... what are you seeing?
This sort of thing presumably works better in some sectors than others, given the rate of adoption by iPod users.
c.
5:36PM on 17th July 2009
Podcast may now be a niche market but it is growing in a major player on the media playground. The increase in podcast adveristment will one day turn profit by reaching a larger audience.