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UGC sites the way forward

UGC sites the way forward

Consumers have more control now than they've ever had in choosing how, when and what media they consume.

User-friendly technology has made it possible for virtually anyone to create and distribute their own content with ease, spurring the rise of user-generated content and Web 2.0.

Seventy million US Internet users will create some form of content online this year, representing 35 per cent of the US Internet population, according to eMarketer's report "User-Generated Content: Will Web 2.0 Pay Its Way?"

US user-generated content sites will earn $1 billion in ad revenues in 2007, but that number will skyrocket to $4.3 billion in 2011.

Worldwide, $1.6 billion will be spent in 2007, rising to $8.2 billion in 2011.

Emarketer graph

Admittedly, there are many issues to work out, not the least of which is a business model to monetise the vast amounts of content and traffic these sites generate.

Marketers are reluctant to place their ads against what might be considered questionable content.

EMarketer, however, remains optimistic. As long as user-generated content sites such as YouTube, MySpace, Facebook and others continue to build and retain vast audiences, they will be able to generate revenue, even if the advertising is limited to the professionally created content on those sites.
AJR
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