Dallas Morning News
From the June 8, 2005 print edition


Will Podcasting reel in customers?

Cheryl Hall, Dallas Morning News

Podcasting is the hottest buzzword in advertising. But what the heck is it? And does the business world have much use for it? I decided to find out. Podcasting, a mashing of iPod and broadcasting, is downloading audio files to portable digital music players. The idea is that people on the go can listen anytime, anywhere.

In just six months, podcasting has gone from obscurity to the “next big thing” in attracting the hip, affluent audience so many companies lust after. But is it? Perhaps, says Owen Hannay, founder and president of Slingshot LLC, a Dallas advertising agency that specializes in the Internet. But “next” could take a while to get here. “Podcasting clearly has the industry buzzing. But that doesn’t mean it’ll become commercial anytime soon.” Slingshot helps Dr Pepper, Samsung Electronics Co. and other clients blend traditional advertising with the virtual realm. Mr. Hannay and his troops are still evaluating the effectiveness of podcasting.

Some radio stations and newspapers are podcasting to reach another audience with little added cost. As of last week, Rush Limbaugh fans can access his radio program through a subscription-based radio network. Clear Channel Communications Inc. and Infinity Broadcasting Corp. both have plans to podcast. Locally, Centennial Fine Wine and Spirits has a 26-minute interview with wine guru James Moll that can be downloaded from its Web site so that digital listeners can listen while they’re shopping.

Bigger numbers

The question is whether podcasting can attract advertisers. Mr. Hannay is intrigued but unconvinced, citing several hang-ups: There’s no way to measure the audience, no established pricing and targeting is a real problem. There’s also no easy access to the programming. While 22 million Americans listen to tunes on iPods and MP3s, most aren’t downloading to those devices on a daily basis. “People doing podcasting are getting downloads in thousands. Most major marketers are looking for much bigger numbers than that,” Mr. Hannay says. There’s added problem for one of Slingshot’s largest clients, Brown-Forman, which makes Jack Daniel’s, Finlandia vodkas and Woodford Reserve small-batch bourbon. “We have to verify that 70-plus percent of the audience is above the legal drinking age.”

Some advertisers are podcasting because it’s unregulated by the Federal Communication Commission. Condom maker Durex bought ads on an X-rated podcast show to circumvent decency rules and reach the 18- to –24-year-old crowd. The Omnicon Group buyer who placed the ads told AdAge.com that it’s a way to position the brand “as fun, as playful and sensual” and show how the product is actually used. Yikes!

Strong Content

So why give podcasting more than a glance? “There’s a certain cachet to your brand by doing something new and hip,” Mr. Hannay says. But engaging content is key. People need a reason to download. Apparently Centennial has conquered that. Nearly 5,000 people have accessed its wine selection podcast since it when online in May, says Roger Voss, executive vice president. Encouraged by the response, Centennial added a tour of the French Bordeaux region and a podcast on wine storage. The mobility of podcasts can be a plus. A major credit card company is considering walking tours in tourist destinations, Mr. Hannay says. “It would give information about the buildings you’d be looking at, events going on and information about various places- restaurants, bars, and souvenir shops along the way- that accept the card. That makes a ton of sense.” Mr. Hannay pinched the idea for the Dallas West End Association, which is now working on a downloadable tour of the historic district. The nonprofit association’s executive director, Greg Schooley, says it saves thousands in printing costs and can be updated at will. The group will also try to sell sponsorships.

But Michael Boone, partner in Carrollton-based Launch Agency, says podcasting is narrowcasting gone extreme. That’s not something that appeals to his clients, which include Park Place Dealerships, Pizza Inn and the Dallas Zoo. “Our clients still have a tight rein on advertising budgets. There isn’t money for something new and unproven,” he says. “It takes a company where it pays to be an advertising innovator and pioneer. The folks we work with don’t fall into that category.”