Online video might be taking most of the online advertising buzz these days, but podcast advertising (affectionately nicknamed “podvertising”) is expected to take some of the spotlight, too.
A recent report released by eMarketer expects podcast advertising spending in the U.S. to reach $400 million by 2011. This figure was $80 million in 2006, a phenomenal step up from the $3.1 million spent in 2005.
eMarketer expects podvertising spending to reach $240 million by 2008 before reaching the $400 million mark in 2011.
The one major hurdle for this advertising channel seems to be the lack of a huge and consistent audience for podcasts in general. Though there are such a wide variety of genres for podcasts to fall into, even successful ones struggle to reach 50,000 listeners according to eMarketer.
A benefit to this is that podcasts can be very specific and targeted, which would make it easier for marketers to target their intended audience as well.
According to a report creatively titled “Podcast Downloading” released by Pew Internet & American Life Project, in August 2006 only 12% of U.S. adults have ever downloaded a podcast to listen to or view at a later time. An overwhelming majority (88%) have never done this.
Only 1% of the 2,822 respondents downloaded a podcast the day before the survey.
The percentage of people who have downloaded podcasts did increase from the prior period, but it is still an undeniably small segment to target big dollars at.
If handheld devices develop a strong wireless file-sharing aspect like the kind Microsoft’s Zune is trying to introduce, podcasts could see a nice uptick in value.
Podcasts should continue to see increased value regardless, because they have actual value to the everyday consumer. It’s not farfetched to imagine college students increasing their reliance on podcasts of their professors’ lectures in preparation for an exam. It would be interesting if advertisers partnered with these academic institutions in podcast ventures.
Podvertising will remain a niche mechanism for a while, but that should not count against it. For advertisers who are confident that their message will be conveyed effectively to their intended audience through a particular podcast, podcast advertising could be the way to go.
Sources:
http://publications.mediapost.com/index.cfm?
fuseaction=Articles.showArticle&art_aid=56061
http://www.emarketer.com/Article.aspx?1004552
Digg 
