BENEFITS OF BUSINESS PODCASTING

Prepared for Shari WeissBusiness 300 GWARSan Francisco State University

Prepared by Alejandra LopezBusiness Administration, Marketing StudentSan Francisco State School of Business

May 10, 2015

TABLE OF CONTENTS

EXECUTIVE SUMMARY.ii

INTRODUCTION......1

FINDINGS..3

-67% of podcasting listeners dont mind sponsorship messages-144 Million Americans spend 52 minutes per day, of which 76% are alone-There were 46,940 in-app purchases in 2014 generating thousands

CONCLUSIONS AND RECOMMENDATIONS...7

WORK CITED...8

LIST OF ILLUSTRATIONS

Illustration 1Influence Marketing..62The audience for podcast downloads...63Share time spent listening to audio sources....64 Podcast listeners are affluent, educated, and engaged 6

EXECUTIVE SUMMARY

Podcast subscriptions have just reached over 1 billion in 2014 according to the Washington Post. For the purposes of performing a conservative analysis it is projected approximately a 6% growth rate over the next few years as one could expect listenership to rise. Due to the rapid global growth of podcast listeners of forty six million it is not limited to any specific target audience. Many companies have already started using podcasting and find it a huge growth potential for their business.The direct financial benefits of Podcasting will result from generating a larger audience and advocating value. As shown in this in-depth study conducted by the Advertising Department at AdMixt they found that EntrpreneurOnFire Podcast generated gross earnings of over $200,000 in only one month. This study was conducted to determine how podcast could improve business goals.Over time, it is expected that podcasting will continue evolving into a great way to build brand recognition and be a successful marketing tool. In particular, it is predicted thatthepopularity of podcasts will continue to grow as the expansion of smart TVs, wearable technology, and in-car media become more widespread.Analysis of the data revealed benefits in two areas:Revenues:Podcasting can generate revenue in a variety of ways through commission income, sponsorship, and contributions from listeners. Marketing:Businesses that incorporate podcasting can benefit from the viewership generated from promoting products and services.

On the basis of these findings, it is recommended that using podcasting in business will yield positive marketing and financial results. Podcasting will also serve as an important asset to heighten awareness and maintain customer loyalty. Lastly, podcasting adds value for listeners, thus leading the way to inspire a greater variety of voices in the media.

This report will emphasize the impact of incorporating a business podcast and the benefits of customer loyalty, customer control, and additional revenue. It will encompass how to encourage positive customer feedback and how to maintain a loyal relationship. This will also uncover a large need found through untapped listener space that opens the doors to expansion and higher viewership. Lastly, this report will highlight the opportunity to grow in revenue based on an increased demand of podcasting and the affordability of running a successful business podcast.

ii

INTRODUCTION

This business report was designed to analyze the advantages of podcasting in business practices. Specifically, the report seeks answers to understand how podcasting can help establish customer loyalty and maximize profits, develop a companys brand, and the cost and benefits of podcasting in business.

Background

Podcasting is a digital medium that uses an audio file to share information through computers or portable devices. Businesses use podcasts for a variety of reasons, including sharing ideas, promoting new products or services, spreading company information, and building brand awareness. Podcasting began spreading in 2004 and is now a widely used tool for modern day businesses.

The development of podcasting has influenced businesses to generate more revenue through building a connection with its consumers. Companies also use podcasting as a medium to communicate promotions of new products and services while reinforcing the brand. Many businesses have added podcasting to their business marketing portfolio to increase sales and form a household name in their industry.

The popularity of podcasting is rapidly growing in the business world due to the accessibility of technology and the expansion of social media. Many businesses incorporate the use of podcasting as way to stay connected. Other uses include: creating an intimate relationship with their audience, delivering information through multiple channels, and connecting their employees to their organization.

Statement of Purpose

The purpose will be focused around the benefits of incorporating the use of podcasts in business. More and more people are tuning in and listening to podcasts due to the accessibility of technology. Many individuals with smartphones can access podcasts at anytime on their phones, MP3 players, or in the car during their commute to and from work. Podcasting is a growing field that is still untapped by the masses and is an open space to begin creating a footprint and become an industry leader.

Significance

The importance of podcasting for businesses is in its effectiveness as a powerful medium that enables the organization to engage and hear consumer feedback. Podcasting provides a personal feel that allows the creator to deliver an organic flow of information while illustrating a story. Podcasting allows companies to grow an online presence without the tedious steps of creating a video. In addition, it is an option that is less used in todays workplace that gives room for creativity.

Scope

The scope of this report will include the benefits of incorporating podcasting to businesses and how podcasting is giving people in business a new voice. Podcasting poses plenty of opportunity to expand a business while connecting and relaying information to listeners. In a business environment overshadowed by video it is difficult to effectively market and enter a public space to voice opinions. The scope will address how businesses possess the opportunity to revolutionize the way business is performed.

Organization

The areas to examine include: the growth potential of podcasting, the benefits of incorporating a podcast in a business, and how podcasting will create brand awareness. The findings will demonstrate customer loyalty, listener control, and profits. The information provided for the remainder of the report will analyze more in-depth information of the urgency for using a podcasting format in a business setting. From the introduction and the background it is clear that there is a need and an added advantage for using podcasting as a marketing tool. There are many advantages of using a podcast to reach an audience while shaping customers perception. This report will close with a conclusion and recommendations that will be beneficial to keep in mind before beginning a business podcast.

FINDINGS

67% of podcast listeners don't mind sponsorship messages

The benefit of businesses using podcasting is that listeners respond well to audio podcasting and advertisement. In a recent study TotalPicture Radio discovered that people were less likely to encounter unwanted sponsorship during a podcast then any other form of medium. Nearly, 80% of podcast listeners agreed that when price and quality is equal, they prefer to purchase products from companies that advertise on the podcast they enjoy. Listeners sometimes find them useful, compared to only 6% positive sentiment expressed for the advertising approaches of television or commercial radio.

Customer loyalty plays a big difference when customers enjoy the content being displayed. Most viewers that tune into a podcast may not necessarily find value in commercials or advertisements unless the products relate to their needs. When listening to a podcast most individuals are more responsive to advertisements because it is being delivered from a credible source. Most of the sponsored items are being reviewed and discussed by the host and delivering the experience and answering the questions that the viewers want to know. It creates an atmosphere that is trusting and an environment that feels like the viewers are among friends because they have the ability to interact with the host. This is why ninety percent of these respondents indicated that they had taken some kind of action as a result of podcast advertising or sponsorship, and over 40% reported purchasing behaviors, which indicates that they are receptive to the right message, in the right context. The power of building customer loyalty is displayed by knowing the targeted audience paired with the right message.

A large amount of the individuals that listen to podcasts have drastically altered the way they consume media. A majority of listeners have cut off traditional ways of receiving news, listening to music, and watching their favorite shows. Most commonly people watched movies and shows on basic cable and listened to their favorite bands and songs on the radio. However the upcoming trend of listeners are tuning out of normal forms of media consumption and switching to streaming services. People are now consuming their media on streaming platforms such as Spotify, Pandora, and Songza for music, Netflix and Hulu for TV shows and movies, and podcast channels on blogs or company sites for their news. A new audience is appearing and becoming loyal podcast listeners.

144 million Americans spend 52 minutes per day in cars; of which 76% of them are alone

Listeners are not easily disrupted by advertisements on podcasts and enjoy the flexibility to listen at their own convenience. Now with the accessibility to modern technology it is easier to connect to an audience while they commute, run errands, and go about their lives.

People have the option to tune in on their own time and learn about new and interesting topics. There are not many informative sources that can be consumed during time periods when other things are going on. The growth for business podcasting is becoming more prevalent especially because of the ability to listen to podcast to on demand. One of the most pivotal reasons podcasting is becoming so popular is because it is easier to consume. It is a convenient way to retrieve data without interfering with ones daily activities.

A major benefit of starting a podcast in business is that it is affordable and simple to use. Companies will be able to produce a high quality show without investing a lot of money into the production of a podcast. In this day in age it is a remarkable tool to have the flexibility to be heard on multiple different platforms that allow for an even stronger engagement with users. Due to the large untapped space of consumers, podcasting serves as a great tool to attract those listeners to build a wider audience. There are millions of people who are commuting a day for at least a half and hour and sometimes longer are most likely driving in silence or listening to the radio. This space is untouched by any other form of media platforms and is a large space that can be occupied by listening to a business podcast. The biggest selling point for business podcasting is allowing the consumer control. In todays world everyone is moving so quickly and there is hardly anytime for anyone to set time aside so podcasting serves as a great alternative to catch up on current events.

There were 46,940in-app purchases (14.7%) in 2014 generating thousands in revenue

Starting a podcast for a business has become a great way to market for a large or small company. It is possible to generate income through podcasting while not spending a fortune to get a show running. Some companies reported making a range from ten thousand to a couple hundred thousand dollars through podcasting alone. Podcasting is certainly more prevalent than ever before and continuing to be an invaluable asset for companies. Seventeen percent of companies are increasing their blogging practices to spread their company products to deliver an online presence on other social media platforms. Technology has a lot to due with the evolution of new platforms and blogging and podcasting have grown far out of a niche market. The startup cost for getting a podcast up and running can be affordable although, many companies and startups use investors such as crowdfunding and kickstarter. The only challenge that arises is finding a reliable way to get consumers to pay for subscriptions to a podcasting channel. Most of the revenue is then generated through the purchase of mobile apps and paid website accounts. Most podcast can also earn revenue through subscriptions and advertisements featured on their shows. This may entail communicating or featuring the product or service on the show and encouraging the listeners to buy the item mentioned. It is a fact that advertisers look for specific podcast that match with what they sell so that partnership can be a great business move for both podcasters and advertisement companies. If a podcast wanted to charge a fee for accessing content, the application would include added features that would make the application more desirable for the user. Some podcast that do charge are Pocket Cast, Downcast, and Podcast Addict, which includes features such as voice equalization, speed control, and search options. The reason why some podcast require a fee is strictly because of the convenience features, not the content provided. Unfortunately the challenge remains in altering consumer behavior to pay for this type of content and public expectations about podcasting in general.

Another option to boost revenue for podcasting would be to increase the quality of the podcast and do affiliate deals with others to launch a paid subscription service. A sponsor may also be interested in conducting a guest interview most likely an entrepreneur, CEO, or an influential leader to serve as a paid placement. A paid placement would be a sponsor who pays to have well-informed personnel in the industry to serve as a human advertisement and communicate product benefits to listeners. Although there are some challenges with earning revenue through podcasting, there is a wide market for revenue generation. Last year, podcast subscriptions reached over one billion dollars, and the number of monthly podcast listeners tripled to seventy five million from twenty-five, five years ago. Podcasting is hands down a great addition to a business as long as a strong audience presence is prevalent. It is researched that producing a podcast and marketing a podcast require the same effort while passion is a great driver for the success of a business podcast. The importance of podcasting for businesses is that it is an effective medium that is a powerful source that enables the organization to engage and hear consumer feedback. Overall, podcasting provides a personal feel that allows the creator to deliver a natural flow of information.

Illustrations

CONCLUSION AND RECOMMENDATIONS

The analysis of the marketing and revenue benefits of business podcasting leads to the following conclusions and recommendations about incorporating podcasting in business practices. Some of the benefits include building brand loyalty and brand equity, accessing a wide audience, shifting to branded content to generate awareness, and encourage users to use podcast as a primary medium. Brand equity will be established due to the constant media presence generated by consistently running shows and spreading ideas and information. The audience will steadily grow while further opportunities can lead to more revenue down the line. It is viable to adopt a loyal audience that will occupy the open untapped space to be successful. On the basis of these findings, it is highly recommended that businesses authorize the use of podcasting to expand brand awareness and encourage financial growth. The direct benefits of using a podcast within a business are displayed in the promotion of brand development and contribution towards financial gains. As podcasting shows, increasing profits, job creation, and other direct benefits would follow the creation of starting a successful podcast supported by a business platform. A main advantage for businesses that use podcasting is an easy-to-grow online presence versus dealing with the tedious steps of creating an online video campaign. In addition, it is an option that is less used in todays workplace so the practice offers a nice compliment, contrast, and break from writing. It is a refreshing method for delivering news and creates a more comfortable way of creating content while making it more convenient for the listeners. In practice, podcasting amplifies the organizations personality allowing for listeners to feel more connected and develop trust. Other major benefits include the minimal cost of podcasting as an affordable medium and the simplicity of technical maintenance. Companies will be able to produce a high quality show without investing a lot of money into the production of a podcast. In this day in age it is a remarkable tool to have the flexibility to be heard on multiple different platforms that allow for an even stronger engagement with users.

WORKS CITED

1. http://maximizesocialbusiness.com/whos-listening-podcasts-2015-18213/2. http://www.fastcompany.com/3041522/pod-power3. http://www.conversedigital.com/digital-strategy/podcasting-statistics-trends-future4. http://www.toprankblog.com/2014/01/podcasting-content-marketing/5. http://www.edisonresearch.com/podcasting-bigger-think/6. http://www.stephaniesammons.com/creating-a-podcast-for-business/7. http://www.sidehustlenation.com/how-much-does-it-cost-to-start-a-podcast/8. http://www.forbes.com/sites/michaelthomsen/2015/04/07/podcasts-are-doing-to-advertising-what-uber-has-done-to-transportation/9. http://www.forbes.com/sites/yec/2014/01/09/how-podcasting-is-giving-women-in-business-a-new-voice/10. http://www.entrepreneur.com/article/24417211. http://www.business2community.com/online-marketing/8-stats-podcasting-dark-horse-online-marketing-01115741