Podcasting Listeners Are Paying Attention

I just love it when the data weighs in to support something I have witnessed anecdotally and intuitively known long before research could prove it. Podcasting does the heavy lifting of finding niche audiences and capturing their attention in a way that is otherwise unattainable to marketers. Be sure to read all the way down to Rox's 4 L's of Podcast Success.

I am presenting here the results of two studies, one by Arbitron/Edison Research and one by PodTrac.

I was lucky to be on a panel of experts who spoke at ad:tech san francisco two weeks ago, on behalf of the Association for Downloadable Media. In our session, we released the latest survey data from Edison Research addressing both the size and the behavior of podcast audiences. Their data is oriented somewhat towards audio podcasts, and IMO video podcasts are audio podcasts on steroids.

Here's the takeaway from the lead analyst, Tom Webster

The audience for downloadable media is not only growing, but also represents a very attractive target for advertising...and those 23 million Americans are affluent, spend lots of time (and money!) online, and are increasingly more difficult to target with interruption advertising. I would love to see more and more partnerships between mass media broadcasters and independent content producers. You need each other.

You can download the full PDF here from Edison Research. (PDF)

The second study gets down to the nitty gritty: so what if there are more podcast consumers, are they paying attention? Yes, and in ways that are unheard of in traditional advertising and marketing.

• Average unaided ad recall of 68%
• Average aided ad recall of 89%
• 73% average increase in likelihood to use/buy vs control group
• 69% having a more favorable view of advertiser due to ad exposure

How is this possible? PodTrac CEO Mark McCrery summarizes it this way:

Narrowly targeted audiences, appropriate ad formats, content relevance, and show host involvement are some of the factors which come together to produce highly effective ads in online shows and podcasts.

I would describe it as Rox's Four L's of Podcast Success:

1. Love: Podcast producers deliver authentic, topic-specific content and do the heavy lifting for attracting a unique, targeted, and interested audience. People who love Hawaii watch Beach Walks with Rox.
2. Loyalty: Podcast hosts, who by virtue of sharing their expertise and some personal details, create very loyal audiences. Over 60% of Beach Walks viewers tune in every day.
3. Location: Podcast audiences largely consume the content at the physical (not geographic) location of their computer (60-70% on average) and can take immediate action when presented with offers from show sponsors. When listening to traditional radio or TV, they are not in a physical location to be able to respond on impulse. (Being able to take podcasts on the go is an added bonus of podcasts—not available to radio or TV. We show Beach Walks episodes to our seat mates on the plane coming back home to Hawaii, and that combined with a good old-fashioned postcard generates new viewers and gives travelers a personal connection to the vacation of their dreams)
4. Leadership: Podcast hosts serve as a filter for their audiences, as most will not accept sponsors for products and services they do not support. This is the best of leveraging word-of-mouth advertising with scale.

I didn't include it, but another L could be the Luxury market. Podcast users are far more likely to have attained at least a college degree, are more likely to live in households earning in excess of $75,000 per year, more likely to buy online, and more likely to use pop-up blockers. But heh, it doesn't always have to be about the Benjamin's!
What do you think about podcasting? I'd love your feedback.

Do you invest more in people or gear?

There was a job posting over on a message list I follow, and it got me to thinking. It seems that lots of companies feel safer and more comfortable about investing in a lot of high end equipment, but then want to find people to work on spec or for very little pay or for fame. As a creator though, I have some different opinions, so I posed the question to a group of colleagues at ad:tech last week. You can listen to their opinions, then make up your own mind - and please tell me what you think!

Here's the original posting for context:

[Company X] is looking for a video engineer to manage, enhance and
operate our state-of-the-art HD multi-camera streaming video studio.
We're switched, have about 3,000 square feet of shooting space, a green
screen, etc. We need someone who wants to chart the course of what a
videoblogging/streaming studio should look be, on a beer budget.

In all fairness, beer is part of the company's culture, so you could take that last comment a couple of different ways. Feel free to leave a comment right in the video as well - you'll just have to create a quick account over at viddler.

Are You Addicted to Big Numbers?

I love math. It has an uncanny way of teasing apart the truth, but alas, it can also just as easily be used selectively to manipulate or create false impressions. And if we get addicted to a certain type of math - tracking eyeballs and households for example - then we can be inadvertently wasting time and money on our way to building brands and selling stuff.

In the old days of business, it was not possible in most cases to communicate with just the people who were a good fit for your products and services. So your agency developed campaigns for you that involved sending out millions of mailers or commercials broadcast to hundreds of thousands of households.

Typical rates of return? Less than one percent. We all know that. But those big campaign numbers are still so addicting. "I need the big numbers in order to get the rates of return to justify this expense." Well, you only want the actual end result numbers.

The point is that now with technology, new media aka podcasting or downloadable media and social networks, you can actually reach the precise people who are most likely to buy from you, on the first round. You don't have to bother interrupting or shouting at gazillions watching a mainstream TV show knowing that in there a few customers (who are probably fast-forwarding the commercials anyway...) You have other more powerful ways of having "private" conversations with your target audience instead of hoping your target finds you in the midst of all that noise.

I call it the phenomenon of having people actually self-enrolling themselves and it's one step faster and juicier than "targeting." Though there were dozens of companies here at ad:tech promising better and better targeting of audiences, wouldn't you rather be able to just show up with your stuff knowing that people had already organized themselves around a related "something"?

I have a couple of examples for you.

iPhone Users and Web Software
On Monday, the Wall Street Journal wrote about a new iPhone software:

Earlier today, we wrote about new software that lets businesses customize Web sites for visitors with iPhones. Our take: Businesses that sell to other businesses shouldn’t rush out and buy this software because iPhones only account for 0.18% of Internet traffic...

That's a really small number. 0.18%. Who wants to bother with such a small, even microscopic group of people? Well what if you knew that iPhone users as a group are high income and highly educated phone users, and as early adopters they are also trend-sensors as well as trend setters? They are the people who have the money and the intellect to detect smart moves in the marketplace and tend to have others who follow them.

Now, not every company wants to meet the smart, rich, trendy, 24-7 movers and shakers, but if you do, iPhone users have already identified themselves as such, and making your web site i-Phone-compatible is an incredibly easy way to say to them: hey you! over here. My company wants to make it easy for you to play with us.

Mainstream Media Placement or Podcast Placement?
There's a local girl band here in Hawaii, MighTyJ. During the production of their album, they set up a blog and filmed a vidcast aka video podcast with their recording engineer, Doctor Trey. When it was time to start promoting themselves, they used a combination of approaches. For one they got booked on the CBS-affiliate morning show (about 25,000 households). After that appearance, there was zero uptick on their web site traffic and no increase in downloads or subscribers to their vidcast.

Then they made an appearance on our daily Internet TV show, Beach Walks with Rox, average daily download of about 2500 or one-tenth the reported size of morning network TV. Their site traffic jumped enormously and they doubled the number of subscribers to their podcast.

So do you want to waste your time contacting 25,000 and get no response or contact 2,500 and get an enormous response?

Welcome to the new new math people. Fall in love with small numbers. Be willing to pay a higher CPM/CPA because other things (technology) and other people (podcast creators) are doing the heavy lifting for you.

HAF: A Message for You from Susan Bratton

I am getting very excited about the session I'll be running in a few days at the Hawaii Advertising Federation meeting. I've been addressing the topic here on the blog, and today's post is a personal video message from Susan Bratton, one of the founders of the Association for Downloadable Media a co-founder of Personal Life Media and chair of Ad:Tech digital marketing event, just to name a few!

She has deep experience in the world of traditional advertising and has adeptly moved herself into the center of digital marketing. She also hosts her own audio podcast, so please visit Dishy Mix to hear some of Susan's out of the box interviews with technology and marketing experts.

Now, a few words from Susan:

Video provided by Viddler. Get an account and send me your video comments or leave a comment right inside Susan's video.