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Marketers Hoping for Podcast Profits
Thursday, May 4th, 2006 at 4:00 PM - by Jeff Gamet
Although podcasting is very successful as an information distribution method, not all advertisers are seeing returns on their marketing dollars yet. Startup companies like Podshow Network and Podtrac are doing well at rounding up advertisers to sponsor podcasts, but those advertisers aren’t seeing enough revenue yet to warrant price tags over US$30,000.
According to MarketWatch, advertisers still feel they are in a test phase where smaller investments lower the risk of loss should the market dry up and podcasting fades away. If consumer interest remains high over the next 12 months, companies will be more willing to step up to the million dollar mark to get their ads in certain podcasts.
Mark McCrery, cofounder of Podtrac, commented "[Advertisers] need to have a good experience. I think a year is when we will see significant ad budgets coming into podcasting, resulting in about 50% to 75% of ad inventory sold across a majority of podcasts."
If advertisers start to see a reasonable return on their investment, ad placement in podcasts could become a very lucrative market.
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