UGC: show me the money!

eMarketer has an interesting question today: Can User-Generated Content Generate Revenue?: "“Since many of the growing numbers of Internet users creating social media are also consuming it, this is a content chain that feeds on itself,” says Mr. Verna. “There is a seemingly infinite demand for content, and there are legions of Internet users armed with laptops, cell phones and digital cameras ready to deliver.”"

Despite the large usage numbers, advertising revenue for user generated content is still painfully low. Not because, as Andrew Keen puts it, “Nobody wants to advertise next to crap.” But because advertisers and their agencies are not willing to let go of control. They want to keep their eye on the prize: their company or product logo, displayed as BIG as possible. Anything else is only adding more noise to the signal.