As individuals and now brand owners recognise the potential of podcasting, the IAB traces the story of the on-the-go media so far.

Thursday, 6 July 2006

Earlier this year, Rupert Murdoch, the internet’s most unlikely evangelist, issued a stark warning to traditional media. The magnate claimed that offline channels needed to catch up with online audiences or face extinction in the digital age.

Murdoch primarily singled out newspapers by saying publishers must get to grips with new technology to engage their consumers in an era where “media becomes like fast food”. Audiences now access what they want, when they want it and read, watch or listen on the go – media is now more consumable than a cheeseburger.

Some newspapers like the UK’s Daily Telegraph and The Guardian have reacted quickly recognising how shifts in consumer behaviour, facilitated by the internet, maintain loyalty and generate revenues. They have embraced on-the-go media, by hosting Podcasts to fit in with the changing lifestyles of their readership. UK comedy duo David Baddiel and Frank Skinner have also recently teamed-up with The Times to offer an 'unofficial voice' of the 2006 World Cup via podcast that have proved extremely popular. Also, the success of the record- breaking Ricky Gervais has being nothing short of a phenomenon.



For those bewildered in the face of the recent technical-terminology onslaught, podcasting is a term that derives its name from the iPod - the revolutionary and fast becoming legendary mp3 player. Podcasts are audio or video files downloaded from the internet that can be uploaded to portable digital players. To date the primary download was music, but now media owners and advertisers have realised the commercial prospects beyond radio show formats. Along with the newspapers mentioned above, other pioneers of the media are broadcasting behemoths, BBC and Channel 4.

Numerous organisations are using free podcasts as part of their communications strategy. Even the Catholic Church offers a downloadable mp3 ‘pray as you go’ service for commuters, hungry for a 10-minute daily dose of prayer and enlightenment.

BMRB research in 2006 found that nearly 11 million people in the UK own at least one mp3 player and more than 10% of the UK adult population have downloaded a Podcast in the past six months. Podcasting is fast becoming a staple part of our media diet – it puts the listener in control of their programming schedule.



Almost unheard of in 2004, Podcasting has entered common language. In 2005 Podcasting was declared ‘word of the year’ by the new Oxford American Dictionary – quite a feat considering that a survey in July 2005 published by Pew Internet and American Life found that only 13% of respondents understood what it meant.

Podcasting has certainly proved itself to be much more than a flash in the pan and a small number of innovative advertisers have been quick to respond. A recent report from emarketer in the US projects that Podcast advertising will generate a whopping $80 million this year and could generate up to $300 million worth of advertising revenues by 2010.



Podcasts could prove a golden opportunity for brand owners who want to reach an eager audience who have made a rational decision to download content they are advertising within. For example, if you’re a car manufacturer, what perfect sense it makes to advertise or sponsor a Podcast dedicated to car enthusiasts? It’s non-intrusive, relevant to the consumer and is served to an already engaged audience.

At a recent AOP seminar, “Podcasting – what’s the point?” 60 delegates were polled on their opinions to the downloadable shows. Over a third of the recipients said that their businesses had already used podcasts in an effort to engage with their audience, with 52% planning to launch a show within the next year.

Whilst Podcast advertising is still at the development stage, a number of brands are leading the way with sponsored and advertiser-funded content.

American Express is launching a multi-million pound ‘Travelcast’ campaign, which has already been trialled successfully at the 2006 Winter Olympics. Amex customers on holiday can download maps and videos to their mp3 players from ‘Travelcast hubs’ – media consumption doesn’t get more on-the-go than that.

BMW has also embraced Podcasting as an effective marketing channel. By enlisting up-and-coming journalists to write downloadable short audio stories about a memorable car journey, BMW has drawn in customers with engaging and compelling content. Volvo, Toyota and Honda are also jumping on the bandwagon with sponsored shows.



It’s not just corporate Podcasters who are reaping rewards. In March 2005 two mums from Virginia, USA, launched ‘Mommycast’, a downloadable commentary on the trials and tribulations of motherhood. In just a year they’ve secured a $100,000 deal with Dixie paper products and their shows even carry ads for AOL and Hasbro’s toys and games.

As a vehicle for delivering highly-specialised content to niche groups, there’s no sector that can’t exploit Podcasts. Earlier this year FMCG giant Cadbury announced plans to dramatically increase its online marketing spend to include Podcasts. All those with a sweet tooth, watch out for ten-minute downloadable chocolate-based recipes.

This all sounds great in theory, so why isn’t everyone doing it? In just a few years we’ve seen an explosion in online advertising spend – from just under half a million pounds in 2003 to the billion pound medium it is today. More conservative advertisers, perhaps bitten in the dotcom boom, are playing a watching and waiting game. Effectiveness is key and only limited evidence of success exists.

Some say 2005 was the year of the Blog – another online phenomenon that is defined as a personal, yet public, internet diary. So will 2006 be the year of the Podcast? Well the technology is here to stay and that’s the most important factor. One thing the astounding growth of internet technology has shown us is that online marketing has longevity. Podcasting is another powerful string to add to online’s bow, so 2006 may be the year that advertisers wake up to the opportunities it holds, but it’s the internet as a whole that will be the real winner.

The proliferation of Podcasts reflects the community spirit of the internet and is indicative of a much larger revolution in consumer behaviour. We’re at the start of bigger changes whereby all consumers will become hungrier for on-tap, convenient and relevant entertainment, education and news and advertisers have a real opportunity to get involved. Chris Green, technology editor at VNU’s Computing, speaking at the AOP conference earlier this year said: “In the age of ‘pull’ rather than ‘push’ media, we need to be able to reach our audience at times, and in places that suit their needs.”

Only time will tell whether advertisers can harness the extra value from reaching specific target groups within one of the most welcome environments. One thing is for certain, brands should pay attention to Murdoch’s ‘fast food’ media; it may only be a small fry at the moment, but it certainly has the potential to develop into something very mouth watering indeed.