BBC, YouTube, and the User-Generated Media Boom

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The Center for Media Research has released a detailed study on advertising trends, focusing largely on user-generated media. Below are some of the findings from the study:

# User-generated media remains primarily national in scope with 98.1%, or $20.0 million, of all advertising spending coming from the broader market in 2005
# Total spending on user-generated online media is forecast to grow at a compound annual rate of 106.1% from 2005 to 2010, reaching $757.0 million in 2010
# Auto was the second largest marketing category, generating $3.9 million in 2005, as car manufacturers utilized user-generated media to market their higher-end models to the "influential" demographic
# The media industry spent $3.2 million to advertise in user-generated media in 2005, as the industry tried to capitalize on its advanced knowledge of the consumer shift away from traditional media

Along the same lines, BBC is making user-generated content a big part of its site overhaul, and YouTube's recently announced Director program is further incentivizing user-generated video as a viral marketing strategy by allowing uploaded videos to be branded with a logo and the ability to attach a URL to each video as well.

What are the real implications of user-generated media for publishers, advertisers, ad networks, and merchants?

via MIT Advertising Lab