Are you reading this from a forwarded email?
New readers can receive our RBR Morning Epaper FREE for the next 30 Business days! SIGN UP HERE
Welcome to RBR's Daily Epaper
Jim Carnegie, Editor & Publisher

Click on the banner to learn more...


Podcasting: can it make money? Part IV

What do the buyers think? Zenith Media's recent report, "Podcasting 101: The Future of Radio or The Latest 8-Track?," detailed there are several options available for advertisers to enter the podcasting space: Audio Spots: Using the traditional radio advertising model, audio commercials can be inserted into podcast programming. These ads, however, may be viewed as obtrusive to listeners, who could skip over them easily with their MP3 devices; Sponsorships: As a presenting sponsor, advertisers could underwrite entire podcasts; Owning Your Own: Advertisers could produce their own podcast devoted to their brands, which could provide exclusive information to listeners. The podcast link could be housed on a client's existing website; and Building an Online Community: Advertisers have an opportunity to provide a message space where users have an opportunity to post experiences relating to a specific product/lifestyle.


What are traditional radio buyers saying about the viability of podcasting for their clients?

"I think it's an interesting idea," says Matt Feinberg, SVP/National Radio, Zenith Media Services. "Not so much as an advertising vehicle at this point, but rather as another personal, on-demand info/ entertainment vehicle that is being provided by both established corporate broadcasters, and mom and pop operations. This fact that the Infinity's of the world are embracing the technology says a lot of things. The one thing they realize is that the world is changing and the way we consume media is part of that change. One might call it evolution, however given the current state of government affairs in this country, 'evolution' would hardly be a fitting description. But whatever you do want to call it, it's all different and media/marketing people need to understand the change. As far as sponsoring an existing station's podcast, we haven't thought about it, only because the one client that is specifically looking into podcasting is doing so on a national level."

Matthew Warnecke, VP Mgr Network & Local Radio, MediaCom, says podcasting is "Great for talkers. Rush Limbaugh makes great sense in theory, but that's for a very different target than the youth-oriented iPod user. I have yet to see a compelling story for music-driven stations...the ideas are being pitched to us, but they are more contingent upon our clients' spending and then developing the content for the podcast. Frankly, that's putting the cart before the horse."

Says Kim Vasey, Senior Partner/Director of Radio, mediaedge:cia: "I believe that podcasting might become a viable option to reach consumers at a time that when they choose to be reached with content of their own choosing. This is highly active listening and I would not be opposed to recommending to a client to purchase a :30 or :60 second commercial within the podcast, if it was the right environment for them to be in."

Have you been approached by podcasting entities for buys? What was the pitch and your reaction? "We have, but the pitches were something along the lines of, 'sure we have/can do podcasts, what do you want to pay?'," says Feinberg. "Only one person has come into our office who really had any idea of how the technology works and a concept of what to do...and even they weren't sure how to price it. Then again, our group understands the technology very well, are aware of the many podcasts out there (and there are a lot!), but have really no idea how to price them either....yet."

"Kinda, the pitch was vague and they just threw numbers out there to see if something would stick, I don't think there is a solid sales force out there yet," added Rich Russo, JL Media's SVP/Director of Broadcast Services.

If you haven't bought podcast sponsorships yet, what would it take? "I think it would have to be multi-tiered, something like a major show like Rush or Hannity or a specialty show like Little Steven's Underground Garage, in which the podcast is brought to you by client "x" at no charge," says Russo. "But there will be a number of spots in the podcast of the client, that the listener is made aware of delivering them the show for free. The host would then give the client some over the air announcements as well. And maybe the client gets a database of those getting the podcast with an opt-in to contact them with an exclusive offer or two. Something like that might generate some interest."

Says Natalie Swed Stone, US Director, National Radio Investment, OMD: "There has to be a clear indication that consumers are interested in the podcast material-which currently doesn't include music yet. 2) The demographics would have to align with our clients. 3) The economics would have to work-audience vs. cost. 4) Additional benefits would likely include marketing and merchandising programs."

"We need to understand if there are any legal ramifications, compensation issues for commercial talent, verification of spot delivery, proof of performance, who the audience is, etc," adds Vasey. "Overall, it's an area that I'm watching very closely and staying on top of. I think it is also a way for the stations to extend their brand - keep the listeners engaged and to offer content to their listeners that keep them coming back to radio (especially for the younger demos)."

"Right now we have a conceptual RFP out there. We're just waiting for the vendors to get back to us with a formal proposal. Though the technology is easy, to try and do a podcast on a sponsorable, corporate level, has some stumbling blocks typical of any new production, i.e. talent fees, production personal, content concept by committee, etc.," Feinberg explains.

"Podcasting is the latest craze that may or may not prove itself to be effective. Providing high-quality reach for the best price is our goal," cautions Warnecke.



Radio Business Report
First... Fast... Factual and Independently Owned

Sign up here!
New readers can receive our RBR Morning Epaper
FREE for the next 30 Business days!

Have a news story you'd like to share? [email protected]

Advertise with RBR | Contact RBR

©2005 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191