Podcasting Monetization Strategies #2: Publishers

2. Publishers and Direct Monetization of Podcasting

To my marketing-infested mind, the possibilities for publishers are quite obvious, with the most traditional and generic being either monetization through ad sales or monetization through content access sales / subscriptions.

a] Smaller market players with small mid-value listenership, reaching mostly general audiences, might find their profits come through podcasting-oriented ad networks or perhaps even content networks providing access to multiple podcasts for a small subscription fee.

b] Large players reaching the masses or small players reaching high-value niche audiences will surely be able to sell their ad venues via their own sales forces or specialized media planning/buying agencies, perhaps even via large traditional ad agencies.

InformationWeek lists a good example:

PodSafe Music, created by PodShow Inc., sells ad placements in its podcasts to Absolut Spirits Co. "We mention vodka at the start of a podcast," PodSafe site manager C.C. Chapman says. "Absolut lets us do our own thing."

And according to a case study done by MarketingSherpa, GoToMeeting actually found that podcasting sponsorships have done very well in their integrated ad campaigns, with overwhelming responses.

c] These same publishers might also get away with subscription sales, provided they can offer unique content not easily available elsewhere.

It however remains to be seen whether listeners will be prepared to pay for podcast access. As noted by InformationWeek, a recent European young consumers study by Forrester Research found that 46% of 16- and 17-year-olds would consider paying for podcast content, while only 33% of those surveyed would accept advertising in podcasts.

It's clear that people will always be willing to pay for unique high quality content.

But are young consumers among those willing to pay? History shows that regardless of what anyone says, most consumers still preferr advertising over having to pay for content.

d] Other publishers, especially independant or smaller publishers using direct marketing tactics to facilitate sales, might generate revenues by providing podcasts in combination with their other products --> selling packaged access or offering podcasts as bonuses upon purchase.