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With each new advancement in communications technology there are new opportunities for advertising. Within the last two years, podcasting has emerged as a potentially large and lucrative market for your advertising dollars. While the initial figures on podcasting are not overwhelming, the potential for growth is high. According to The Diffusion Group, a technology research consulting firm, podcast use is expected to grow from 4.5 million users in 2005 to 56.8 million by 2010.
What is Podcasting?
These figures are all well and good for those in the know, but what exactly is a podcast and what is podcasting? Podcasting is a word formed by the combination of iPod and broadcasting. Podcasting allows subscribers to receive downloads of audio and video programs (files) to their MP3 players (not just to an iPod) or computers to play at their leisure. Once your MP3 player or computer is turned on and logged into the internet, the podcasts you have selected as being desirable are automatically downloaded or "fed" to you.
Actually the use of the word "podcasting" became so ubiquitous last year that it sparked the editors of the New Oxford American Dictionary to declare "podcasting" the 2005 word of the year in December, defining the term as "a digital recording of a radio broadcast or similar program, made available on the Internet for downloading to a personal audio player."
What this Means for Advertising
In its early stages, podcasts were created by those with the technical know-how and disseminated to like-minded individuals. Like blogs, early podcasts were the work of a few early adopters and organizations on the bleeding edge of technology. But, as the number of people with iPods and other similar MP3 players grew (up to 22 million adults according to the Pew Internet & American Life Project), traditional broadcasting and online information sources began to see the potential. Now, many audio and video feeds are offered by the networks, online portals, entertainment sites and even local radio stations.
With the introduction late last year of the video iPod, many users may now download videos of their favorite shows to take with them. ABC quickly adapted to the new technology and now offers episodes of Desperate Housewives and Lost to podcast subscribers, advertising included. Many other advertisers have taken to sponsoring podcasts similar to the early sponsorship days of radio and television.
While it may be a bit early to consider spending local advertising dollars on podcasts versus traditional media, it is important to be aware of the technology and its growing popularity and weigh the advantages of being an early adapter. It is possible that the growth estimates may be conservative and that new advancements in portable audio and video MP3 players could bring an increased rate of growth to podcasting.
Sources
Casting a Wider Net: Podcasting is ripe for online advertising profits by Lisa Picarille, Revenue, Volume 3, Jan/Feb 2006.
Wikipedia entry for "Podcasting"
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