• by Seana Mulcahy , July 10, 2006

We are finally seeing a shift from passive to active media--yeehah!

The term "user-generated content" is buzzing around--but like most buzzwords in our industry, its meaning is vague. I'll spare you the multiple definitions and focus on one. In a recent Rider Research report "The Implications of User-Produced Content," this phenomenon is defined as content that users create or produce--including photo, video, audio, animation and text.

OK, it took me a minute to digest that. Then when I thought about it, it seems as if just about everything online is migrating to this: Think podcasts and YouTube and MySpace and Flickr.

I also thought of Oddcast. The company develops and distributes avatars and user-generated media products. I spent some time with Adi Sideman, its founder and CEO. As he is a leader in this growing space, I wanted to share part of our conversation with you.

Seana Mulcahy: How do you think user-generated content will affect the way online media is bought and sold?

Adi Sideman: More and more consumers and small businesses are becoming savvy online users. It's not rudimentary to make a MySpace, yet they sign up 250,000 people a day. Its certainly take a savvy user to buy targeted keywords on Google, yet they have over 500,000 advertisers. User-generated media goes hand in hand with user-generated advertising. Companies like SpotRunner, TargetSpot and others are enabling anyone on the Web to buy a TV or a radio ad!

So we are looking at a revolution in the way agencies and businesses buy and hyper-target ads.

SM: Is there a limit to user-generated content?

AS: The challenge with UGC is that the quality is not that high. But this will improve as users become savvier and companies provide them better tools. The sky is the limit. Hey, 'America's Funniest Home Videos' is one of the most successful TV shows ever...

SM: If you were to predict a trend in the space, what would it be?

AS: Hyper-targeting. The more advertisers get addicted to ROI reports and see the results from targeting, the more segmentation they demand and will get. Online, self service advertising tools will be competing to offer online ad creation and hyper-targeting tools.

The Rider Report lists many reasons why such content has gained momentum as of late:

--The seemingly insatiable appetite for reality TV has been a boon for UGC.

--Consumers desire unfiltered, real content.

--Mainstream entertainment companies are increasingly fostering and soliciting UGC for some of their interactive and linear programming

--UGC is intrinsic to the Internet, and is naturally developing in tandem with the Internet's growth.

--UGC is benefiting from greater advertising support and involvement, with an increasing number of advertisers soliciting and incorporating UGC into their ads and sponsoring such content.

So in a nutshell, it is cost-effective, has many advertising opportunities, is viral in nature and generates buzz. It also has huge brand appeal if you are able to find a consistent voice. Where do you see UGC going? Post to the SPIN blog and let us know.