This week, the Strategy Institute held their Digital Media & Pricing Summit at the lovely Bridgewaters near the South Street Seaport in New York City. It was a gathering of digital agencies, ad networks, and anyone else involved with online advertising. At the last session of the last day (tell me about it :), I had the pleasure of speaking on a panel with fellow ADM members Bryan Moffett, David Herscott, and Chris MacDonald. We spoke on the podcasting landscape, advertising and sponsorship models, and where we saw this all going. Key learnings from our and other sessions:
- Agencies are still taking a “wait and see” attitude with podcasting. About 11% are adding it into their advertising mix, but it’s still way near the bottom of their priority list.
- Many are buying into it as a “velue-add.” That means that they’ll take the podcasting advertising for free with a larger online banner buy. This isn’t desirable, but I remember that this is where banner buying was 12 years ago when I was selling for Entertainment Tonight’s Web site.
- Yes, podcasting is new and exciting, but there are half a dozen other technologies that are new and exciting that likewise want ad dollars. We have to show that podcasting stands above with them with its connection to the listeners/viewers. It’s the ADM’s job to prove that.
- A study my company, Porter Novelli, conducted on behalf of Dixie and the MommyCast proves the above point amazingly. I’m working on unlocking more of the proprietary findings, but the average MommyCast listener told 29.1 other people about Dixie products. That’s huge!
- Purveyors of virtual worlds are still holding onto the notion that Second Death, er uh, Second Life is alive and well. To their credit, the space isn’t dead, but Second Life and There are dying. Don’t count virtual worlds out. Some — done right — are thriving, like Club Penguin, Webkinz. If you want to learn more, check out Virtual Worlds 2008.
- Online CPMs are averaging around where they always have ~$25 - $30. Podcasting will be higher than that, but not without proof of effectiveness (aka join ADM).
- Long-form streaming video (primetime shows on abc.com, hulu, etc.) CPMs are on the rise. Agencies agree that the extreme increases are unwarranted, but the writers’ strike is keeping the available inventory desperately low.
Short story, downloadable media is maturing, but research, metrics, and proof of effectiveness will need to mature in kind. I urge you to join us in the revolution and make a difference. Get your slice of the pie!
Matthew Snodgrass, ADM Secretary, VP Porter Novelli