Streams and Podcasts are Great News

Jennifer Lane

A recent survey conducted by News Generation, a public relations company with an expertise in radio, showed that of top news and talk radio stations surveyed in the top-25 markets, 100% of the 25 stations stream their content online, and all but one offer their content as podcasts as well.

News and Talk broadcasters have realized that the original content that they produce has lots of value - and distributing it on different platforms makes sense. The survey went on to provide specifics on four stations in particular: WCBS-AM in New York, WBZ-AM in Boston, KTRH-AM in Houston, KXL-AM in Portland, and KMOX-AM in St. Louis. The stations said they offer between 75 and 100 percent of their audio content as podcasts. WCBS sees 700-800,000 downloads a month and significant revenue from its podcast content.

By offering their content online, stations are expanding their audience. CBSRadio's news stations across the country recently saw a huge jump in listenership during their live streaming coverage of the Vice Presidential Debate, and CBS-AM in New York got a 200% lift out of streaming the final Presidential debate live. By offering this alternative programming online, the station was able to superserve its core audience and grow listenership, resulting in more impressions/spots to sell to advertisers.

Podcasts Are Engaging
The appealing thing about podcasts is that they provide audio content that the listener controls. In order for a listener to want control over audio content it has to be good. It has to be good enough for me to want to download, sync, and carry along for times when I can't listen live OR it has to be good enough for me to want to listen to it instead of what I can listen to live.

We live in an age where pursuit of and control over content is desirable. Podcasts are not mass marketing tools. But they are by nature highly engaging. The fact that I go to the effort to find, download and sync several podcasts on a weekly basis demonstrates that I am engaged with that content. Actively, not passively. Advertisers are looking for more ways to engage with potential customers. Podcasts are an opportunity for content producers to increase the effectiveness of a campaign.

Where's the Money?
So what's the revenue model? Audio ads must be embedded or stitched into the content. The Wall Street Journal podcasts open with a tease or headline after which the audio ad runs. This is ideal for the advertiser because they are within the actual content. Some technologies now enable insertion of ads prior to download and refreshing and verifying delivery during each sync of the device, providing meaningful audience stats to the advertiser.

Podcasts are valuable for the degree of engagement that they have with the listener. It's not about the number of listeners who are reached, but how they are reached. The business model for podcasts relies on understanding and selling through that value at higher cpms, either as standalone campaigns or blended with other station offerings. This gives advertisers exposure to the audience in a highly engaged format and can increase a campaign's ROI. Which is of course the bottom line?

-- Jennifer Lane has a long career in Internet radio. Read her blog about the business of Internet radio and digital audio at  www.Audio4cast.com .