First
The Association for Downloadable Media or ADM just announced best
practices guidelines and standards to address some of the real
obstacles that exist regarding scaled ad buys in the downloadable media
space, particularly in measuring downloads and ad unit standards. They
were formulated in tight coordination with the advertising industry
through our organization's Ad Council.
Recent data shows podcasting is actually making a considerably large
mainstream impact and that the business model is well underway towards
profitability. Nope we are not completely there yet (think banner ads
five years into public adoption of the internet) but these recent
activities and new data suggest you might want to take a second look at
this space.
The members of our trade group, comprised of RSS media host
providers , big and growing content publishers (who are making money
now, including my music discovery network IndieFeed, as well as shows
that have significantly lower audience counts but with great loyal
audiences), ad intermediaries, interactive agencies, and big brands
including Apple, Microsoft, Nokia, Real Networks, Discovery Networks,
Turner Broadcasting, MTV, Arbitron, Neilsen, NPR, PBS, PRI, Comcast,
and in total well over 200 members, believe we can help address the
clear hurdles to translate to effective, wide-scale ad-supported
monetization.
If you take IAB and ad banner development as an example, we believe
best practice guidelines have developed far quicker than other
technology adoptions in the past. They are the first public step in a
coordinated effort to create cross-system apples-to-apples and low
friction commerce between publishers and advertisers. We are moving
forward to secure funding for primary research to help bear out the
power and immediacy of subscribable and downloadable media at the niche
level.
Second, The Arbitron Edison Research Internet and Multimedia Survey
of 2008 just came out, showing a roughly 39% growth in audio and 45%
growth in video podcast consumption from last year. Nearly 54 million
Americans have consumed podcasts (more than one in 5), predominantly
25-54 age bracket, 53% male 47% female, consumption occurring
predominantly at the desktop. I encourage you to speak to Tom Webster
at Edison Media Research for more details, he can be reached at
twebster at edisonresearch dawt calm.
TWITTER
We all love Twitter but podcasts dwarf Twitter usage, in substance,
unit production, and most importantly, reach. I'm not clear why this
comparison needs to be made. Sure they are two emerging user-generated
social technologies. Where Twitter is a growing, vibrant micro-blogging
medium, primarily link and text based, how it delivers direct revenue
generation for twitter publishers remains to be seen. It sure is a
great amplification device to an extremely small group of 2.0
influencers.
BLOGGERS
As for commercial viability, the stratification of
bloggers to commercially viable bloggers is likely the same as
podcasters to commercially viable podcasters. You've seen the graphs,
it looks a lot like an iceberg with the sea-level defining the
monetization line. Today the focus is on the group above the line.
Podcasting is not failing as a
monetization model. Some publishers may never make money if they fail
to deliver an opportunity to the advertiser, and vice versa. But many
are and will fulfill this objective. It is not that RSS media
enclosures are somehow a broken technology, it's tremendously powerful
and monetizable. But systems will need to be adopted to accommodate
scale and that is what our group is up to.
These recent indicators strongly suggest to our group that podcasting
and episodic audio and video media is not only viable but a vibrant and
exciting space for advertisers to reach loyal audiences drifting from
traditional media.
Chris MacDonald
Chairman
Association for Downloadable Media
Wizzard Media
downloadablemedia.org