Podcasting, Is it working?

Being in the radio business, Andrew Hampp’s a recent article in Advertising Age caught my eye. The article, “Marketers and Content Providers Tune into Podcasting’s Potential” explores the marketing potential of podcasting. With radio advertising sales flat during the past few years, any new revenue streams are now being quickly capitalized. This was not the case just a few years ago. Radio was threatened by the thoughts of listeners downloading podcasts and not listening to the radio. Yet radio was the perfect entity to partner with this new media. Radio already had the content as well as the ability to easily produce podcasts, yet they steered away from it with only a few companies dabbling into the new medium. What they failed to realize was that podcasting offers one feature radio has always been criticized for; listeners can’t control the timing of programs. Now those same listeners can download a podcast and play it back at their leisure.

Currently companies like Acura, Toyota, and MasterCard are purchasing advertisements within National Public Radio and ESPN Radio podcasts. During a poorly attended seminar at the National Association of Broadcaster’s Radio Only Conference, the person in charge of NPR’s podcasting provided a bright outlook for a partnership between radio and podcasting. Many in the room questioned the young man’s theories insinuating he was siding with the enemy. Yet today those same naysayers are watching NPR and a few others capitalize on the marketing opportunities of podcasting while trying to play “catch-up”.

Podcasting is a very viable marketing opportunity for business for many reasons, mainly due to the ease of podcasting. Just a few years ago one had to manually download podcasts as MP3 files. Today these files are downloaded automatically with the help of ITunes and the newest versions of Windows Media Player. This allows listeners the opportunity to listen to the files on their computer, portable MP3 player, cell phone in their cars, at the office or at home when they have the time. Downloads of their favorite audio programs with one or more advertiser’s marketing message included is a one of the many new digital advertising opportunities available today. In 2002, NPR was able to sell 18 million dollars in total podcasting ad revenue. Today that number exceeds 46 million.

Podcasting as a viable marketing medium is growing faster than anyone expected, especially “mainstream” media like radio and television expected. This growth will only expand more quickly as smart phones such as apples IPhone storms the market. No longer do you have to sync up your portable player with your computer to download your podcasts. These Wi-Fi enabled wireless phones already have the ability to download and save your favorite podcasts. You don’t have to do anything. They are ready for you to play when you want them. This includes not only audio podcasts, but video as well. This unprecedented opportunity for marketing will quickly change the way we look at podcasts and their ability to reach a targeted audience. It also creates new opportunities for radio and television stations yet will the embrace it?