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Podcasting: Where does it go from here?

The question has been debated for centuries: if a tree falls in the woods and no one hears it, does it make a sound? Conventional wisdom says yes, but that no one will notice. The axiom could be applied to podcasting. Can the corporate world profit from "the hippest and coolest communication tool on the Internet … a must-have for consumers," as the production company, Palegroove Studios, calls it?

2006-10-11

Ask any 20-year-old and they will tell you that podcasting is a method of distributing multimedia files over the Internet through syndication feeds for playback on hand held devices like MP3 players, or on personal computers. The scale of this market? Last year more than 10 million iPods were purchased; other brands of MP3 players accounted for additional millions of sales. Accessories alone for iPods and other players are a $2 billion business, according to National Public Radio's (NPR) "Marketplace." Fifth generation iPods play audio and video through bundled software called iTunes, now a powerful podcast search engine. Add "podcasting" to the list of words — like "photoshopping — that grew out of product names. Podcasting's appeal is that it enables "time shifting" — on demand, pass-it-around audio and video entertainment — as well as corporate and institutional communications. Like the pioneering TiVo technology that automatically searches and digitally records your favorite television programs, podcasting allows users to listen or view at their convenience, rather than on a broadcast schedule. Most consumers consider podcasting an entertainment vehicle (music, videos, movies and television shows and clips), but its application has now expanded to include documentaries, news and current affairs, tutorials, training seminars, college lectures, business seminars, corporate communications and marketing, and more. The buzz surrounding this technology makes it alluring to marketers and business communicators. Still, questions circle concerning the future. Will the excitement chill when the next tech tool comes along? Will podcasting catch on with consumers outside the 18-35 crowd? And just what is podcasting's marketing and educational application to the corporate environs? Observers say that the marketing, promotional and educational potential, if realized, is significant. Indeed, it may bad business in this business to come late to the party. The next big marketing tool … or not? In 2004 only a few hundred podcasts were posted to the Internet. That number rose to a few thousand last year, including audio and video offerings. More significantly, General Motors became the first Fortune 100 Company to recognize the technology's potential and provide a podcast of its own last year. No wonder that the editors of the New Oxford American Dictionary declared podcasting the "word of the year" in 2005. The simplicity of the underlying technology makes it possible for just about anyone to podcast, says Steve Corman, a professor in the Hugh Downs School of Human Communication. That simplicity, he says, is starting to turn corporate heads, as a viable and profitable way of communicating with customers. "I think there's recognition that these technologies will grow in the future, and there are commercial benefits, especially with companies that have fast-changing price information," Diane Clarkson wrote in a report on the marketing potential of corporate blogs and podcasts. "But usage numbers of people listening to them (podcasts) is so small, the impetus to move ahead and invest heavily is not universal." "Podcasting," writes Heather Green in Business Week Online, "has just flung up tons of excitement and has amazing promise as a media game changer. But we kind of still need to treat it like an unstable chemical out of a lab. What shape will it take once it cools down?" It will appeal to a broader audience, predicts Michael Desiderio, director of strategic partnerships at the W. P. Carey School of Business. "I think it will take hold more and more." Adds Corman, "It certainly has potential, and people ignore it at their own peril." Most agree that podcast's simple technology and accessibility will not be impediments to success. "That's not the roadblock. I think consumer behavior is the real challenge," says Amy Ostrom, associate professor of marketing at the W. P. Carey School of Business, noting that podcasting today has more of an entertainment value than a business focus. More to the point, asks Kevin Dooley, professor of supply chain management at the W. P. Carey School of Business: "In an attention-deficit, fast-paced world are business leaders and consumers interested in multimedia content; would they be more attracted if they understood they could subscribe to it, and have it pushed to them automatically? People can read five to ten times faster than they can listen, absorbing in 30 seconds what it takes five minutes to convey on audio or video." Can podcasting then be overkill? "Well, would you sign up for a podcast from McDonald's?" Dooley asks. It does depend on the content, says Desiderio. "This is where you need to be creative," he adds. "A corporate podcast might appeal to a certain audience, for example, if it offers a behind-the-scenes look at a new product launch and users can learn from it." Desiderio regularly downloads podcasts from Business Week and the Wall Street Journal, which offer key editorial content that helps brand the publications and drives circulation and advertising revenues. Corporate podcasting, he notes, also has potential if marketers can find the approach to piggybacking "infomercials" onto the content of other podcasts. "I have seen this done on some video podcasts," Desiderio said. "If the marketing messages are kept really brief, say 30 seconds, and somewhat entertaining, they may not be viewed as too intrusive and perhaps in time users will become more accepting of them." "You don't have to go hard sell," writes Philip Nicosia in an on-line piece, "Using Podcasts For Marketing Buzz." Podcasts "can be part of an overall public relations campaign to build relationships … thus enhancing your brand equity as a 'company that cares.'" The best way to get traction for corporate podcasts, they add, is through links to podcast directories and search engines, like iTunes, podcastdirectory.com or podcastingnews.com. Know your audience What are the attributes of an effective podcast? For starters, determine whether podcasting is the right vehicle. "There is a basic theory in communication called 'media richness' that says the richness of the medium should match the demands on the message," says Dooley. "If one is communicating something that requires intonation, podcasting is a remarkable tool. But if the message is straightforward and there is no ambiguity, text does the job." And, know your audience. "Like any marketing tool," adds Corman, "you must first discern: Who's the audience, what will interest them, and how do you make them aware of podcasts?" Companies seeking to grow market share might try podcasting, but if no one is listening the marketing effort is akin to the proverbial tree that falls in the woods. Effective podcasting is about motivating a subscriber-based audience to tune in. "The content must be useful and appeal to a subscriber's need for information or to be entertained. No one is interested in downloading a bunch of ads," Desiderio says. Desiderio is bullish on podcasting, and says this "innovative marketing tool" is clearly more substance than it is fad, but he warns that it will not appeal to every audience. While podcasting will not supplant lucrative television and radio revenue any time soon, its potential in niche advertising to connect with customers on a new level is impressive and merits a close corporate watch. "What's unique about podcasting," adds Dooley, "is that it pushes content to a consumer and forces a connection with the content provider -- a more predictable link than simply hoping someone stumbles upon you on the web. With podcasting, you can project, almost with precision, how many people see the content." But, "it has to be examined as an option for advertising against other media, such as print, TV, radio, etc.," Dooley continues. "It's attractive to advertisers because it has a relatively predictable audience size, since you know how many people have subscribed." Other applications Podcasting has possibilities within business organizations too, according to Dooley. "Podcasting could be used for training purposes, and management could use podcasts for communication purposes," Dooley says. "It's richer than a memo, so it can 'handle' a more complex, nuanced message, but it is less expensive (and rich) than face-face communication." Palegroove Productions offers other corporate, educational, media and political applications:

• Companies seeking to upgrade employee training, communicate frequently with customers about new industry trends and products, or distribute video press releases
• Media interested in providing new cutting-edge content to readers, listeners and viewers
• Industry associations who want to update members on the latest news and information
• Professional sports franchises peaking fan interest with more features and stats

So be creative and keep it simple, experts advise. You must find an audience, then keep it. Observes W. P. Carey marketing professor James Ward, "Corporations and organizations contemplating podcasting ought to think of its utility, rather than showing off to the world that one is on the lip of technology. This has little use to an audience that is not impressed with the latest technological advances or has no need for them. Corporations and organizations need to pay attention to where this technology is going." Where is it headed, as suppliers hunt and peck for users? "I'm not sure," says professor Ostrom. "If podcasting is to be a success, there must be a balance between content and how exciting it remains. The danger is the excitement factor will flare out. Ultimately this will determine whether podcasting appeals beyond the tech savvy and niche markets. This will be interesting to watch, but in the meantime, corporations, organizations and institutions should pay close attention, and attempt to determine how to use podcasting in inventive ways. Technology aside, this will depend on whether they have the creative insight to do this. "The key is to pay attention!" Bottom line

• Podcasting is an innovative method of distributing multimedia files, both audio and video, over the Internet through syndication feeds for playback on personal computers and hand-held MP3 players.
• It is a technology ahead of its time, and that's good news and bad news.
• The technology plays to "time shifting" — on-demand, pass-it-around audio and video entertainment, as well as corporate and institutional communications, that are "pushed" to subscribers who are too busy or too distracted to request a download.
• Some observers wonder if podcasting is more hype than substance.

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