"Activity so far and the fact that the podcast audience is very attractive to many companies make it highly likely that advertising and its cousin, sponsorship, are set to become an intrinsic part of the podcasting universe," stated the report. eMarketer also predicted that the U.S. podcast audience would reach 50 million by 2010--up from 5 million last year.

The report said that although the podcast audience isn't necessarily a mass market, it is nonetheless valuable. "Available data show that 18- to 35-year-olds are more aware of podcasting than other age groups, and that iPod ownership in the United States is skewed toward males, as is awareness of the term 'podcasting,'" the report said. "An audience of tech-savvy males aged 18 to 35 is extremely attractive to many advertisers."

The emergence of several podcast-dedicated advertising companies is evidence of the trend, the report contended. "Confirmation that podcast advertising is set to become a significant business has come in recent months with the launch of several companies devoted to bringing podcasters and advertisers together," the report said, citing Fruitcast, Podtrac, and Radio Tail as examples.

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