Blog, Podcast and RSS Advertising Surge AheadAPRIL

Not long ago online advertising was the "alternative" choice but now there are alternatives to it.

According to the "Blog, Podcast and RSS Advertising Outlook," from PQ Media, combined spending on the three new advertising channels rose by 198% in 2005 to a total of $20.4 million. Spending is expected to grow by another 145% in 2006 to reach nearly $50 million.

"Blog, podcast and RSS advertising are being driven by some of the same factors boosting the growth of the overall alternative media sector: continued audience fragmentation, the perceived ineffectiveness of traditional advertising, and the elusive but coveted 18-to-34-year-old demographic," said Patrick Quinn, president of PQ Media. "[They] have demonstrated an ability to reach younger demographics as well as influentials."

Looking at the component parts, PQ Media reports that blog advertising totaled $16.6 million in 2005, 81% of the total spent on the three alternatives. Podcast advertising reached a total of $3.1 million in 2005, according to the report, with RSS advertising, non-existent until mid-2005, generating $650,000 during the year.

Looking ahead, PQ Media estimates that podcast advertising will be a larger market than blog advertising by 2010, when the blog segment will comprise only 39.7%, or $300.4 million, of overall expenditures. Podcasting, projected to grow at a compound annual rate of 154.4%, is predicted to reach a total of $327.0 million in 2010. These numbers are closely in line with eMarketer's own projections, which recently put total spending on podcast advertising at a total of $300 million by 2010.

The pro-podcast viewpoint is backed up by an American Association of Advertising Agency poll conducted late last year that found that marketing executives anticipate spending more on podcast than blog advertising in the future.

PQ Media expects total spending on blog, podcast and RSS advertising to grow at a compound annual rate of 106.1% from 2005 to 2010, reaching $757.0 million in 2010. By comparison, the firm projects that other overall alternative media, including branded entertainment, digital out-of-home advertising, mobile marketing and video-on-demand marketing, will grow at a compound annual rate of 14.8% and reach $253.7 billion in 2010.

If they are right, many advertisers will be taking alternative routes to reach their customers in the next five years.

For more on the future of podcasting, read the just-published eMarketer report, Podcasting: Who's Tuning In?