Information week is talking about advertising in Podcasting, and I am not sure how much thought went into the advertising rate portion of their article. I believe they really missed the mark or at least the Yankee group has in what they quoted.
In their article they state:
“Yankee Group predicts that podcast ad insertion will be based on a cost-per-impression model, an ad-industry measurement for every 1,000 people who see or hear an ad. It’s suggesting podcasters charge advertisers $15 per 1,000 podcast clicks or downloads.”
First of all get that cost per impression stuff out of your heads as advertisers need to realize they are buying into the heart and soul of podcasters shows, and some of the old models apply but the rules have changed.
How have the rules changed:
Number one an advertiser better have a product my listeners can use, and I am not going to try and sell them some alcoholic beverage, if anyone even asks me to advertise something like that you will have insulted my audience.
Second you need to realize that a 60 second in your face advertisement is not going to work as well. Better be prepared to work with the podcaster to do 30 second spots.
Third you better be able to put money back in my listeners pockets through promotions, discounts and give aways of the product were advertising.
Fourth I have to believe in your product with my heart, and soul or my listeners are going to smell a fraud.
Fifth you need to be willing to advertise for the long haul.
Additionally I think what the Yankee group fails to recognize that podcasters by and large have the highest degree of targeted listeners of almost any medium. Those that are subscribing to podcast that stay on topic are also fitting a demographic that most advertisers wet their pants to reach. This eWeek article backs up my assertions.
I am going to counter what the Yankee Group is saying in what podcasters should be charging for advertising, I want podcasters to also realize they better be careful not to sell themselves short. The model of 35-50 dollars per 1000 downloads is a more realistic number.
Some are going to contest that number, but why am I seeing advertising agencies now willing to bid, and compete for the highly prized podcast ad space. Part of the reason is their are more advertisers than their are podcasters willing to take advertising, second most podcast can only handle one to two advertisers without pissing of their audience.
I am starting to get some very clear ideas on were to go in the future with any advertising deals, but I can guarantee it will not be for $15.00 per 1000 impressions because you might as well shot me as $15.00 per 1000 impressions is highway robbery. [InformationWeek]