If you think podcasting is the gateway to Internet riches, you are mistaken.
According to ZenithOptimedia, $28 million will be spent on podcast advertising in the US in 2009.
In 2011, spending will increase to $43 million. For those keeping score, that figure is less than 0.2% of Zenith’s projection for the total online advertising space.
Not much.
By comparison, terrestrial radio, a medium that has been rapidly losing ad dollars, will have 2009 revenues ranging from Oppenheimer and Co.’s estimate of $14.4 billion to Barclays Capital’s $16.6 billion.
The appetite for podcasts is fairly light.
eMarketer estimates that 11.9% of US Internet users (21.9 million people) will download or stream at least one podcast per month in 2009.
Other sources put the figure lower. Ketchum and the USC Annenberg Strategic Public Relations Center pegged the number at only 7% of Internet users in 2008. eMarketer’s estimate for 2008 was slightly higher—9% of Internet users (17.4 million) listened to podcasts.
“Much like blogging, podcasting is proving to be profitable to those who have premium content, but less so to everyday citizens who use the medium to reach long-tail audiences,” said Paul Verna, eMarketer senior analyst.
“Advertising dollars are increasing—but from a small base—and many content owners are able to monetize their offerings. But the medium isn’t making anyone rich.”
Note: Zenith defines Internet radio as audio streamed live to a computer or other Internet-connected device, while podcasts are audio files downloaded and then listened to on a computer, MP3 player or other device at a later time. eMarketer uses similar definitions.
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