The Wall Street Journal Reports that podcasts, while a hit with listeners who devour their rich content, are suffering as large advertisers hold back on investing in them due to concerns over
scale, metrics, targeting and measurement. The paper reports that advertising revenue growth has been limited by a range of problems "not unlike the issues that online media faced in its early days.
It’s difficult to measure how many people actually tune into a podcast, let alone listen to hosts promoting its sponsors. Ads in podcasts are relatively expensive, so it’s tough for brands
beyond direct-response advertisers to determine whether the investment pays off. And the process of buying and selling ads in podcasts is still complex and clunky." The
Journal reports that
advertisers are expected to spend about $35.1 million on podcasts this year, up about 2% from last year, according to ZenithOptimedia. Marketers continue to invest an estimated $15 billion a year in
radio and $70 billion in TV.
Read the whole story at Wall Street Journal »