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BSI How to Use Podcasting as a Marketing Tool

Marketing 2.0 Conference, Hamburg 2005
BSI




         Join the conversation
  MARKETING 2.0 CONFERENCE
        www.marketing2conference.com
How to use Podcasting as a
Marketing Tool

Bill Flitter
Founder, VP Marketing
Pheedo, Inc.
bill@pheedo.com
About Pheedo
   Integrated RSS, Weblog and Podcast advertising network with proprietary RSS ad-serving
   technology and analytics

   Established & Funded 2003. Offices in San Francisco, Portland and Tokyo

   Reach over 8,000 active publishers spanning micro-publishers to large media outlets

   First network offering integrated campaigns across blogs, RSS feeds & Podcasts

   Early experts with experience helping name brands like Subaru, Sun, Citrix Online, Verizon,
   Warner Brothers, Microsoft, New York Times, Wall Street Journal and Nikon.




10/11/2005                Pheedo Confidential – Do Not Copy or Distribute                        2
Podcasting: Where’s the Model?

   “I don’t think there’s a model anymore. I
   think there’s an approach. That approach
   has to be predicated on what the consumer
   is actually doing, not what advertisers are
   used to her doing.”
   - Jim Stengel, Global Marketing Officer, P&G, CMO Magazine – September 2005




10/11/2005               Pheedo Confidential – Do Not Copy or Distribute         3
Why Podcasting?
   Ability to talk directly to a niche, disparate audience motivated to opt in

   Gather an audience over time via on-demand content

   No geographical boundaries

   Time-shifted consumption capabilities

   Alternative, supplemental means for traditional content

   Sole means for original content

   Targeted

   Desirable Audience




10/11/2005                                                                       4
Where Does Podcasting Fit?

      TV                                            Interactive

    •Branding                                        •Direct response
    •Track impressions   •Branding/limited direct    •Track CTR
                         response
    •Nielsen data                                    •Robust reporting
      TV
    •Mass advertising
                         •Track downloads
                                                     •Can be targeted or
                         •No reporting               mass advertising
                         standards yet
                         •Ultra targeted/niche




10/11/2005                                                                 5
Market Segmentation:
Podcast Listeners

     MP3 Player Penetration: 11% -- or more than 22 million of those age 18 and older1
      – It’s safe to say that there are several million more MP3 players owned in the teen world, yet
         surveyed

     Early adopters are largest segment
      – Largest segment is 18 – 34
      – 60% male
      – Metropolitan Areas
      – Tech Savvy
      – College educated

     Those who regularly use RSS/XML feeds, Podcasts and blogs are most likely to be what Jupiter
     calls "super Net vets," or online users with more than 5 years of Internet tenure; are male, and
     have annual incomes of $75,000 or more.

             1   Pew


10/11/2005                                                                                         6
Monetization Models
              Audience not expecting to pay subscription

              Selling own ads not scaleable

              Alignment with Podcast networks and ad networks profitable and scaleable



                                                                                         Many
advertising
 scaleable




                                                                                         Few
    10/11/2005                    New Media Monetization Models                           7
Ad Specifications
   Podcast ads priced by download

   Sponsorship – program sponsored by one or more advertisers, “NPR style” mention of sponsors

   Ads*
    – Intro: 15 second sound bite added to beginning of Podcast
    – Outro: up to 60 second sound bite added to end of Podcast
    – Interstitial: ad inserted into Podcast (tech evolving)

   Demo – Podcast host demos sponsor’s product during show and endorses

   Add value to podcast to avoid skip-ahead syndrome – think product placement




    * Source: www.castfire.com


10/11/2005                                                                                       8
Integrated Campaigns

                     RSS


             Blogs




                     Demo




10/11/2005                  9
Case Study
   Advertiser: Citrix – GoToMeeting

   Publisher: Lockergnome

   Vehicles: RSS, Blogs, Audio Ads, Podcast Demo

   Action: Drive leads to GoToMeeting

   Tracking: Promo code read by publisher for a special discount.




10/11/2005                                                          10
Lockergnome Publisher Format
   No time constraints online to adhere to. This frees producer to answer questions fully and explore
   ideas without interruption

   Live and pre-recorded caller questions

   Interviews with people who matter

   Killer new software finds

   Productivity tips and tricks

   Mini-conferences with two-minute guests




10/11/2005                                                                                         11
Integrated Campaign Approach
                                  Advertiser: Citrix – GoToMeeting

                                  Publisher: Lockergnome

                                  Vehicles: RSS, Blogs, Audio Ads, Podcast Demo


                                               Ad on Blog



                                                         Ad in RSS Feed




             iTunes Syndication



10/11/2005                                                                        12
Campaign Performance
Integrated Campaign dramatically outperformed other online advertising
vehicles in terms of acquisition costs.



                     CTR Client Results                    Fortune 100 Company, lowered their
                                                           effective CPM by 3x.

                            26% Increase
                                                             RSS Ad Advantages Ever Email
                                                          Advantages of Integrated Approach
                                                              - 100% Opt-in
                          Podcast
                                                              - 100% Delivery Rate
                          Blogs                               - 100% Open Rate
                          RSS                                   (when delivered to a two-
               RSS               8.7%
            Advertising      Industry Avg                       pane content reader)
                                Email*
                                                                - No Spam
     *   DoubleClick’s Q4 2003 Email Trend Report




10/11/2005                          Pheedo Confidential – Do Not Copy or Distribute             13
Cailin Pitcher, Senior Marketing Manager, Citrix
Online (quoted in MarketingSherpa and CMO Magazine)

“Podcasting sponsorships have done very well. The are really promising channels with a nice
    audience for us, and they respond well. We’re not going to discontinue tests, it’s one of our
    stronger points. Response was overwhelming.”

“RSS is a no-risk proposition for consumers. From that perspective, it's just a real clear channel
   straight to the consumer.”

“RSS networks, Podcasting, blogs, these new channels all tie in together, and seem to be growing
   pretty rapidly.”




10/11/2005                                                                                           14
Case Study
   Advertiser: Reprise Records (Warner Brothers Records label), exclusive content from band
   including tour bus interviews, impromptu jams and concert recordings. The music is the
   advertisement.

   Publisher: EricRice.com

   Vehicles: Podcast

   Action: Build awareness for the band The Used by adding value to the Eric Rice podcast




10/11/2005                                                                                    15
Sample Podcast
                       Sponsorship
                        Advertiser: Reprise Records (Warner Brothers
                        Records label), The Used

                        Publisher: Eric Rice

                        Vehicles: Podcast




             Audio Sample:
             http://show.ericrice.com/blog/_archives/2005/3/23/466966.html




10/11/2005                                                              16
Campaign Performance

   Created buzz within target audience
    - Press Mentions: NBC, BBC, Internet.com, Red Herring, ZDNet
    - Blogs: Corante, Adverblog, Micropersuasion, Geeknewscentral, Clickz, Corante,
       Marketingvox, Podcastlab, Digital Podcast News, Paid Content
       and many more…


     “Podcasting gained a bit of legitimacy with the first known major sponsorship” - Marketingvox


   Organic Search Results
    - Increased presence in search engine for the band during the time of the promotion




10/11/2005                                                                                           17
Discussion

How to use Podcasting as a Marketing Tool


Bill Flitter
Founder, VP Marketing
Pheedo, Inc.
bill@pheedo.com

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How to Use Podcasting as a Marketing Tool

  • 1. BSI How to Use Podcasting as a Marketing Tool Marketing 2.0 Conference, Hamburg 2005
  • 2. BSI Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
  • 3. How to use Podcasting as a Marketing Tool Bill Flitter Founder, VP Marketing Pheedo, Inc. bill@pheedo.com
  • 4. About Pheedo Integrated RSS, Weblog and Podcast advertising network with proprietary RSS ad-serving technology and analytics Established & Funded 2003. Offices in San Francisco, Portland and Tokyo Reach over 8,000 active publishers spanning micro-publishers to large media outlets First network offering integrated campaigns across blogs, RSS feeds & Podcasts Early experts with experience helping name brands like Subaru, Sun, Citrix Online, Verizon, Warner Brothers, Microsoft, New York Times, Wall Street Journal and Nikon. 10/11/2005 Pheedo Confidential – Do Not Copy or Distribute 2
  • 5. Podcasting: Where’s the Model? “I don’t think there’s a model anymore. I think there’s an approach. That approach has to be predicated on what the consumer is actually doing, not what advertisers are used to her doing.” - Jim Stengel, Global Marketing Officer, P&G, CMO Magazine – September 2005 10/11/2005 Pheedo Confidential – Do Not Copy or Distribute 3
  • 6. Why Podcasting? Ability to talk directly to a niche, disparate audience motivated to opt in Gather an audience over time via on-demand content No geographical boundaries Time-shifted consumption capabilities Alternative, supplemental means for traditional content Sole means for original content Targeted Desirable Audience 10/11/2005 4
  • 7. Where Does Podcasting Fit? TV Interactive •Branding •Direct response •Track impressions •Branding/limited direct •Track CTR response •Nielsen data •Robust reporting TV •Mass advertising •Track downloads •Can be targeted or •No reporting mass advertising standards yet •Ultra targeted/niche 10/11/2005 5
  • 8. Market Segmentation: Podcast Listeners MP3 Player Penetration: 11% -- or more than 22 million of those age 18 and older1 – It’s safe to say that there are several million more MP3 players owned in the teen world, yet surveyed Early adopters are largest segment – Largest segment is 18 – 34 – 60% male – Metropolitan Areas – Tech Savvy – College educated Those who regularly use RSS/XML feeds, Podcasts and blogs are most likely to be what Jupiter calls "super Net vets," or online users with more than 5 years of Internet tenure; are male, and have annual incomes of $75,000 or more. 1 Pew 10/11/2005 6
  • 9. Monetization Models Audience not expecting to pay subscription Selling own ads not scaleable Alignment with Podcast networks and ad networks profitable and scaleable Many advertising scaleable Few 10/11/2005 New Media Monetization Models 7
  • 10. Ad Specifications Podcast ads priced by download Sponsorship – program sponsored by one or more advertisers, “NPR style” mention of sponsors Ads* – Intro: 15 second sound bite added to beginning of Podcast – Outro: up to 60 second sound bite added to end of Podcast – Interstitial: ad inserted into Podcast (tech evolving) Demo – Podcast host demos sponsor’s product during show and endorses Add value to podcast to avoid skip-ahead syndrome – think product placement * Source: www.castfire.com 10/11/2005 8
  • 11. Integrated Campaigns RSS Blogs Demo 10/11/2005 9
  • 12. Case Study Advertiser: Citrix – GoToMeeting Publisher: Lockergnome Vehicles: RSS, Blogs, Audio Ads, Podcast Demo Action: Drive leads to GoToMeeting Tracking: Promo code read by publisher for a special discount. 10/11/2005 10
  • 13. Lockergnome Publisher Format No time constraints online to adhere to. This frees producer to answer questions fully and explore ideas without interruption Live and pre-recorded caller questions Interviews with people who matter Killer new software finds Productivity tips and tricks Mini-conferences with two-minute guests 10/11/2005 11
  • 14. Integrated Campaign Approach Advertiser: Citrix – GoToMeeting Publisher: Lockergnome Vehicles: RSS, Blogs, Audio Ads, Podcast Demo Ad on Blog Ad in RSS Feed iTunes Syndication 10/11/2005 12
  • 15. Campaign Performance Integrated Campaign dramatically outperformed other online advertising vehicles in terms of acquisition costs. CTR Client Results Fortune 100 Company, lowered their effective CPM by 3x. 26% Increase RSS Ad Advantages Ever Email Advantages of Integrated Approach - 100% Opt-in Podcast - 100% Delivery Rate Blogs - 100% Open Rate RSS (when delivered to a two- RSS 8.7% Advertising Industry Avg pane content reader) Email* - No Spam * DoubleClick’s Q4 2003 Email Trend Report 10/11/2005 Pheedo Confidential – Do Not Copy or Distribute 13
  • 16. Cailin Pitcher, Senior Marketing Manager, Citrix Online (quoted in MarketingSherpa and CMO Magazine) “Podcasting sponsorships have done very well. The are really promising channels with a nice audience for us, and they respond well. We’re not going to discontinue tests, it’s one of our stronger points. Response was overwhelming.” “RSS is a no-risk proposition for consumers. From that perspective, it's just a real clear channel straight to the consumer.” “RSS networks, Podcasting, blogs, these new channels all tie in together, and seem to be growing pretty rapidly.” 10/11/2005 14
  • 17. Case Study Advertiser: Reprise Records (Warner Brothers Records label), exclusive content from band including tour bus interviews, impromptu jams and concert recordings. The music is the advertisement. Publisher: EricRice.com Vehicles: Podcast Action: Build awareness for the band The Used by adding value to the Eric Rice podcast 10/11/2005 15
  • 18. Sample Podcast Sponsorship Advertiser: Reprise Records (Warner Brothers Records label), The Used Publisher: Eric Rice Vehicles: Podcast Audio Sample: http://show.ericrice.com/blog/_archives/2005/3/23/466966.html 10/11/2005 16
  • 19. Campaign Performance Created buzz within target audience - Press Mentions: NBC, BBC, Internet.com, Red Herring, ZDNet - Blogs: Corante, Adverblog, Micropersuasion, Geeknewscentral, Clickz, Corante, Marketingvox, Podcastlab, Digital Podcast News, Paid Content and many more… “Podcasting gained a bit of legitimacy with the first known major sponsorship” - Marketingvox Organic Search Results - Increased presence in search engine for the band during the time of the promotion 10/11/2005 17
  • 20. Discussion How to use Podcasting as a Marketing Tool Bill Flitter Founder, VP Marketing Pheedo, Inc. bill@pheedo.com