digital axle

Perplexed Podcasters Join Forces to Compete for a Slice of the Pie

We’ve long been perplexed on the problem of online video content – who will buy, and for how much. (Answer: no one, and nothing.) Coming to terms with the fact that advertising is going to have to be the sugar daddy for streaming video, and it now looks like audio is in the same boat. No one will pay to receive podcasts. But marketers are thwarted from embracing podcasts because they have no way of tracking how many times their messages are being heard or changing outdated ads.

However, like a hungry herd of raptors from Jurassic Park, industry executives are reported to “have closed in on a solution in recent months” and may soon be able to provide consumers with “a much wider array of free audio (and video) content…if they can stand a little advertising to go along with it.”

Sure, why not? But the question now is not what and when, but where and how? iMediaConnection offered up some advice last year what was the best way to do it, but Susan Bratton has her own ideas: the mid-roll. “I have the ability to not just have a single ad in front and end, but a series of them that’ll tell the story.” Ooh. Ahh.

With technology that keeps the podcasts connected to the publishers’ site for better tracking, and the formation of a new industry group, the Association for Downloadable Media – with about 15 companies involved, from Apple to NPR – the future looks fairly good. Projected to grow at a compound annual rate of 154.4 percent to $327 million in 2010 by PQ Media’s Alternative Media Research, and to $400 million by 2011 by eMarketer, we’ll certainly be seeing more on this.

With search, video, social networks, blogs and streaming TV so prominent these days, though, we’re wondering along with RawVoice if “podcast advertising [is] doomed to play fifth fiddle online”.

In an attempt to crank up its popularity, we’ve done our own podcast. Check out CEO Bruce Carlisle’s podcast with Lisa Morgan on The Future of Advertising, in anticipation of his appearance at Online Market World in October. No-Ad!

iStuff Goes Nuts -- $1billion market

Selling at the rate of 1 per second, the iPod has spawned what will become a $1billion market in accesories according to this NYT article.  And the $1 billion doesn't even include online sales.  With 32 million iPods out there, podcasting and video ipods growing, advertisers had better be looking at Podcasts as a medium worthy of consideration (and then they've got to figure out how to access it without pissing everyone off) -- how long before some video content providers start giving the content away and running ads under the screen?  While the accessory market is interesting, the growth of the medium makes you start to wonder how many people are now spending more time every day with their iPods than any other medium. We know at least two.

All Things Podcasting

Personally, I'm cooling off on getting more podcasts, and I'm definitely tiring of the hype surrounding podcasting. 10 minutes into a 60 minute podcast on a subject, I find that my mind begins to wander as wildly as the discussion does! And are the tech-podcasts always guys? TWiT's podcast this week revealed that 97% of their audience is male - shocking :)

But lately there are a few podcast-related developments that I think are worth mentioning.

First, there are two marketing podcasts that I've come across - and if you are into this sort of thing, they may be worth checking out: American Copywriter (two creatives discussing the biz) and Across the Sound (new media). (To be honest, I have yet to listen intently to either - part of my newfound surliness towards podcasting.)

Second, there's this article from BusinessWeekOnline on monetizing podcasts. Interestingly, Mark Kvamme (Sequoia Capital) "thinks podcasting could siphon $1 billion to $2 billion away from the $30 billion radio advertising market in three to five years."

Finally, a new podcasting measurement service was launched in November: Podtrac. Here's an article on their arrival on the scene.

Podcasts.Yahoo.Com

Launched yesterday.

Monetizing Podcasts

According to this New York Times article, 12 million people will be listening to podcasts by the end of this decade. The question for podcasters and distributors, is if/how/when are they going to make real money?

This Clickz article lays out some challenges faced in monetizing podcasts. Right now, the level of measurement is limited to downloads - which may turn some more direct-oriented advertisers off in the short-term. But, once deeper measurement is in place - including ROI - more advertisers are sure to jump on board.

The Podcastinator

Hey Radio, Get a Clue!

As follow up to yesterday's prediction that Apple is about to take control of the podcasting phenomenon, we have today's push by NYT's Stuart Elliot about the radio industry's "double-barreled campaign aimed at its core younger-adult audience."  The National Association of Broadcasters will spend $28 million (partly in print --irony rules!) to convince listeners that broadcast radio is still relevant in the age of Sirius, XM and iPods.

Evidently, younger listeners aren't listening to radio quite as much as they used to (duhh) so the NAB has hauled out oh so hip, relevant and timely acts like Hall & Oates, Lynyrd Skynyrd (are any of them still breathing?), Vanessa Williams and Lee Ann Rimes to convince America's youth to tune in.  Now, admitedly they have a few acts like Hoobastank and Nelly in the mix, but as I recall, even at my advanced age, I discovered Hoobastank as a weekly freebie on iTunes.

Here's a clue for the NAB. Free. (Like radio)

Commutes home without the iPod have become an audio nightmare.  Stop playing the same 25 boring acts all day long and get rid of about 75% of the commercials or you face a long, painful decline.   You'll keep your local stuff and lose the national advertisers.  Give the $28 million to Tsunami relief. Better yet, fund Digital Axle. Spare us.

Apple Owns Podcasting

Personally, we could care less what chips Apple will be using for it's lousy two percent of the PC business.

The bigger news is that Steve Jobs demo'd iTunes 1.9 today. As we've written before, Apple will be supporting Podcasting in a big way. 

The implications are kind of staggering.  As Rachel Conrad reports in this AP story, iTunes could very well become the defacto  portal to  podcasters.  And many of these will be advertising supported.  Will Google or someone else develop an "audio ad words" program?  Ponder that one before you dive back into your first person shooter.

Think blogging is a big story?  Wait  'til this takes off.  We'll be announcing the launch of "AxlePod " shortly.

Penny for your Podcast

Apple's announcement that iTunes will offer support for Podcasts should be an important boost to those trying to monetize the Podcast phenomenon.  Presumably Apple will be able to provide verifiable third party information on which podcasts have been delivered.  While that doesn't translate into actual listenership, it will begin to provide some standardized metrics for salivating media planners to wrap their heads around.

Viacom beats Sirius to the PR punch

Adam Curry - the father of podcasting - is going to host a podcast show on Sirius Satellite Radio, where individual podcasters submit content to be aired. This comes on the heels of Viacom's announcement last week that they're launching a podcast radio station. Unclear whether Sirius' new station will allow music - or if it is all talk?