Online Media Daily:

Advertising on podcasts, dubbed “Podvertising,” will remain a niche channel through 2011–albeit a $400 million niche.

That’s according to new research from eMarketer, which predicts a fivefold podvertising spending increase from $80 million last year to $400 million by 2011.

The growth projection is even more dramatic if compared to the mere $3.1 million that marketers spent on podcast ads in 2005.

Still, the fact that most widely consumed podcasts still have audiences numbering below 50,000–and most have far fewer–will secure the format’s niche status for years to come.

“Despite an incessant buzz about the medium, regular podcast users are still rare,” explains James Belcher, eMarketer senior analyst, in a new report, “Podcast Advertising.” As such, podcasting is a niche marketing channel; it may be the right niche for some marketers, but it’s still a niche.

Photo by pmd.