The content consumer becomes the creator.
An explosion of user-generated content has reshaped the media landscape, shattering the status quo of content ownership and distribution and creating new opportunities for marketers.
Led by the companies that started this revolution — YouTube, MySpace, Facebook, Photobucket and others — eMarketer estimates that US user-generated content sites will earn $1 billion in 2007 and reach $4.3 billion in ad revenues in 2011.
On a worldwide basis, user-generated content ad revenues will rise from $1.6 billion in 2007 to $8.2 billion in 2011.
"Gone forever are the days in which giant media conglomerates control the creation, distribution and monetization of content," says Paul Verna, eMarketer Senior Analyst and the author of the new report, User-Generated Content: Will Web 2.0 Pay Its Way? "The media companies are still around and still wield considerable clout as a result of their content and their distribution networks, but today much of the power is shifting to the consumer."
Not only are consumers able to choose how and when they consume virtually any media, but they are also increasingly in control of the actual creation of content thanks to the popularity of sites like YouTube, MySpace and Wikipedia.
"Of course, user-generated content in itself is not a new phenomenon," says Mr. Verna. "For as long as 'content' has existed, common folks have used all manner of public forums to make their voices heard. Witness America's Funniest Home Videos, subway graffiti, folk songs, Speaker's Corner and cave paintings."
The difference now is that the Internet has democratized the creation and mass distribution of content. Anyone with the basic tools of a PC and an Internet connection can reach literally millions of people with a keystroke.
"This capability has put enormous power in the hands of the estimated 64 million Internet users in the US who created user-generated content in 2006 — and that number is expected to swell to 95 million by 2011," says Mr. Verna.
Currently, the US dominates the space, but other geographies are expected to contribute increasing amounts of user-generated content over the next several years, with 238 million user-generated content creators worldwide in 2011, up from 118 million in 2006.
To see how this explosion of user-generated content is reshaping the media landscape, shattering the status quo and creating new opportunities for marketers, read the new eMarketer report, User-Generated Content: Will Web 2.0 Pay Its Way?
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