A Bizreport article showed up in my Google alerts with some numbers that support what many Podcasters have been saying for some time: Podcast audiences respond well to the advertising that is tailored to them.
Some of the reasons mentioned: niche audiences that actively choose to subscribe to particular podcasts and audiences that follow and trust hosts/presenters.
Adam Curry's Podshow... Eh... Mevio among others was built with the goal of doing advertising the right way for podcasting and avoiding the failures of traditional media. Although, failures... perhaps inefficiency is a better word. Returns are harder to measure and audiences harder to target in 'traditional' media.
I think that the current good results are partly due to the 'newness': a large percentage of early adopters in the audience, podcasters who are really passionate about their content and advertisers who are in tune with the early adopters (and who are early adopters themselves).
Some things that may happen over time:
- Audience grows: on average less engaged, majority adoption -> more difficult to target.
- Podcasters (sources of content) diffuse: on average less engaged, less passionate, less niche -> more difficult to target. Example: CNN 'Now in the News' podcast.
- Advertisers have more choice: more chance to spend money on less effective podcasts.
Advantages of podcasting over TV/Radio/Print that will remain are:
- Improved measurement of effectiveness
- Potential for easier targeting of audiences
- Potential for Personalisation
- Lower financial risk: lower production and distribution costs