Boom Times Ahead for Electronic Content: Forecast Study

Posted on

In 1927's "The Jazz Singer," Al Jolson addressed movie audiences and uttered the famous line "Wait a minute, wait a minute. You ain't heard nothin' yet!" While the line was introducing a musical number in the film, it has been linked with the first full-length Hollywood "talkie" – a movie with a spoken audio soundtrack.

It's a line that could also be applied to online content delivery. According to one forecast study, advertising spending on blogs, podcasts and RSS feeds, which in 2005 amounted to just over $20 million, is set to explode. As consumers become more comfortable with accessing content through these channels – and the technology to do so becomes ubiquitous – ad spending should reach nearly three-quarters of a billion dollars by 2010.

The good times are channel-agnostic, according to Veronis Suhler Steveson's Communications Industry Forecast. In 2005, marketers spent $16.6 million on blog advertising, a figure which will rise to $300.4 million by 2010. Podcast spots, which generated $3.1 million last year, should see $327 million in spending by then. And RSS feeds, which pulled in $700,000 in 2005 – the first year this channel was measured – should generate $129.6 million.

On a larger level, traditional media companies are embracing a variety of electronically delivered content. Between downloaded music, newspaper Web sites, e-books, cable network mobile marketing and Internet radio (all of which were lumped together), paid content generated $20.28 billion in 2005, and should reach $46.6 billion in 2010.

Much of this growth is coming from the business-to-business sector. The study cites the difference in how B-to-B marketers have been faster to embrace electronic content dissemination than their consumer brethren. For instance, consumer magazines spent only $302 million on it in 2005, compared with B-to-B publications, which shelled out $1.87 billion.

Why the discrepancy? Well, B-to-B's embrace was largely spurred by the medium's ability to generate leads at low cost, and offer a chance to measure return on investment. According to the study, "Magazine publishers were slow to adopt the Internet as part of their business models and they have yet to define a clear strategy for generating revenues from this medium. As a result, consumer magazine e-media spending during the forecast period will remain a small fraction of total spending, far behind that of traditional media."

Another high-potential area is custom e-publications, which generated $3.3 billion in spending – or nearly 12% of all custom publishing expenditures — during 2005. This will more than double to $7.2 billion by 2010, according to Veronis Suhler.


Get Content Like This Delivered to Your Inbox

Related Posts

Chief Marketer Videos

by Patricia Odell

Julie Barry, director of global brand for Velcro Cos., talks about her favorite Velcro product at PROMONext: Leaders in Promotion Marketing Conference.