Tech Companies To Spend $10M In Blog, Podcast and RSS Ads

Technology and automotive companies are among the businesses most likely to market themselves in blogs, podcasts, and RSS feeds, according to a report issued Tuesday by PQ Media.

Last year, technology marketers spent $4 million in advertising in such social media, and that figure is expected to climb to $9.8 million this year, according to the report, "Blog, Podcast and RSS Advertising Outlook." Automotive marketers were the second-largest spenders, purchasing $3.9 million worth of ads in blogs, podcasts, and RSS; such spending is anticipated to reach $9.3 million this year. Media represented the third-largest category of advertisers, accounting for $3.2 million in 2005 and a predicted $8.1 million this year.

Overall, PQ Media predicts that spending in social media will climb to $49.8 million this year, from $20.4 million in 2005.

The vast majority of this spending last year--$16.6 million--was in blog advertising, characterized as "the most mature of the user-generated online media segments." Blog advertising alone is predicted to more than double to $36.2 million this year. Podcasts accounted for $3.1 in ad spending last year, but that figure will soar to an estimated $28.2 million this year; RSS advertising, at just $700,000 last year, will reach an estimated $3.4 million this year.

PQ Media also reported that almost all spending--$20 million, or 98.1 percent--is national.

Much of last year's social media ad buys--$8 million worth--were arranged through blog ad networks, such as Federated Media and Pajamas Media. Cost-per-click ads such as those arranged through Google's AdSense or other programs arranged by publishers (as opposed to blog ad networks) accounted for an additional $7.8 million, while affinity programs--where marketers pay only when an ad results in a purchase--represented $1.6 million. An additional $3 million falls into PQ Media's "other" category.

For this year, ad networks will account for $20.9 million, while cost-per-click ads will reach $16.7 million, affinity ads will climb to $14 million, and "other" types of ads will account for $15.4 million.

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