The one – completely accidental – exception came several years ago when I purchased an iPod some months before they were available in the UK. I opted for a 5Gb version as it seemed unimaginable that I could ever require any more memory.
I was fondly recalling both my brief moment as an “Early Adopter” and my continued insistence in buying iPods with insufficient memory when my current iPod told me that I had again run out of memory.
The reason for the shortfall was down to my love of the podcast.
Just a few years ago, podcasting was hailed as the next big thing in media, something that would revolutionize and democratise audio output and threaten the future of traditional radio. After a brief moment in the sun….nothing; podcasting seemed to be forgotten.
Podcasting though has continued to develop and grow. It is estimated that around 8 million adults in the UK have downloaded a podcast (16% of the adult population, around the same number who have ever used Twitter) and that half download and listen to a podcast every week. There are similar estimates from America.
Some of the download figures for individual shows are impressive – Adam Carolla’s podcast from the USA (a free daily 90-minute show) was downloaded sixty-million times in two years and The Ricky Gervais Show has now been downloaded over 300 million times since 2005.
One interesting aspect of podcasts (for those programmes that are commercially minded) is the role they may play in advertising.
With over 150,000 podcasts available a month, they tend to cater for niche audiences. At a point where there is legitimate concern that digital media will overload consumers with advertising messages, could podcasts offer a more targeted and trusted alternative?
A study by Edison Research (Consumer Attitudes To Podcast Advertising Study. 2010) seemed to suggest a real opportunity. Speaking to podcasts listeners the study found …
- Just under 80% agreed their opinion of company is more positive when they hear it mentioned on one of their regular podcasts
- Over 70% were receptive to sponsorship messages on their podcasts
- Over a third expressed some positive sentiment to adverts on their regular podcasts as compared to just 6% for adverts featured on their regularly consumed television and radio programmes
- Nearly 80% agreed that if price and quality were equal they would prefer to buy from companies/sponsors who feature on podcasts they regularly enjoy
In summary, more likely to be positive towards a brand, receptive to their messages and a preference to purchase.
Anecdotally, I would also argue that sponsor recall is also increased. I personally find the stickability of brand names far stronger than for other media.
I believe that recall and brand acceptance is aided by two factors. The lack of advertising clutter is clearly a benefit - the number of messages per hour is significantly reduced as compared to commercial radio.
The second reason supports the findings of the Edison Research study. The various sponsors act as the podcast audience’s enabler – their investment allows them the opportunity to receive free content they personally value. All the brand asks in return is that the audience listen to 2-3 minutes of brand messaging within a given hour – it seems a fair trade off.
Hosts of podcasts will often openly build on this relationship.
On Adam Carolla’s podcast, Carolla will do his own live reads for his advertisers and sponsors (as is common on America radio).
When talking about his sponsors, Carolla openly talks about the basic economics of the business with his audience – primarily a wildly loyal audience of one of the most valued advertising targets of men, 18-49. He asks them to reward the sponsor for their support by giving them their business or at least to investigate what they have to offer.
His advertisers on his network have ranged from Amazon to Bing, to online brands that can measure their impact through promotional codes (proflowers.com, gotomeeting.com) to newer brands such as Man Grate (a grilling tool), which has reported impressive rises in direct sales due to their involvement with the podcast.
The Edison Research supports the potential impact of this personal advocacy from talent, with listeners claiming to be more four times more engaged with advertising messages read by the podcast host.
Adding to the attractiveness of the commercial proposition is that the reach and impact can be cheaply and accurately assessed (download numbers, direct call to action measured with a show specific code to enter at checkout).
Despite the potential the podcast opportunity remains largely untapped, with the audience size increasing far quicker than the advertising revenue. Indeed the advertising revenue remains a tiny proportion of online spend (less than 0.2%).
However, if the audience continues to grow (and traditional media’s audience continues to decline) and podcast listeners continue to show a positive propensity towards sponsors, these shows surely offer an interesting alternative or supplementary strategy to intrepid brands.
Dan Lewis
All opinions expressed are those of the author and not HPI Research.