Report: Worldwide UGV revenue to surpass $1.1 billion

It seems more consumers create a blog or a social networking profile every day, still a new report from In-Stat indicates that ad revenue from user-generated content will grow at a surprising rate. Specifically, user-generated video content will lead the way.

by Kristina Knight

The report finds that video will become the leading aspect of user-generated content because of the advances in the medium. With more consumers using high definition equipment, platforms increasing the size of file maximums and increasing bandwidth, UGV will serve more and more consumers. This also means more and more advertisers will want to sponsor the content.

The growth will be seen most in developing areas such as China, which is expected to be second in content creation only to the US market.

Globally, user-generated video revenue will grow to nearly $1.2 billion by 2012. Roughly 160 billion videos will be served by that year. Mobile users may lead the way. According to the report, mobile phone consumers are likely to contribute both content and revenue to the medium.

In a recent report from Strategy Analytics, about 75% of all broadband consumers will participate in social media - including creating their own content - by 2012. Many social networkers aren't as open to advertising as non-social networkers, however, if advertisers can bridge the gap between offering content and offering product information, that could change.