Monday, April 21, 2008

Podcasts and Online Video Show Ads Beats Traditional Online Ads

Podcasts and Online Video Show Ads are Three Times More Effective Than Traditional Online Ads

First Industry Studies Measure High Ad Effectiveness Across Four Product Categories Over Two Years

ad:tech San Francisco 2008

SAN FRANCISCO--(BUSINESS WIRE)--Podtrac, the leading network of podcasts and online shows, today announced the results of four independent advertising effectiveness studies with TNS, a global market research company, which reveal podcasts as having a three-fold ad effectiveness increase over traditional online video and a seven-fold effectiveness increase over television. Unaided ad awareness across two years of studies was 68% compared to industry benchmarks of 21% for streaming video and 10% for television. The studies spanned two years, from February 2006 to March 2008, and multiple product categories including: television programming, automobile, financial services, and digital imaging. 52 online shows and podcasts participated in the four campaigns studied and 6,869 audience members participated in the research.

Ad formats consisted of: embedded :15 and :30 host-read audio and video ads, embedded :10 and :15 produced video ads, ad banners on publisher websites, and social networking in the form of publisher blog entries about advertised brands and related topics. Podtrac developed the advertising effectiveness methodology in conjunction with TNS.

The study showed embedded advertising in online shows and podcasts to be highly effective for increasing brand awareness, usage intent and positively impacting brand perceptions across four diverse product categories: television programming, automobiles, financial service, and digital imaging. Results included:

Average unaided ad recall of 68%

Average aided ad recall of 89%

73% average increase in likelihood to use/buy vs control group

69% having a more favorable view of advertiser due to ad exposure

The unaided awareness level of 68% is considerably higher in podcasts and online shows than in other offline and online media, said Mark McCrery, Podtracs CEO and Co-Founder. Narrowly targeted audiences, appropriate ad formats, content relevance, and show host involvement are some of the factors which come together to produce highly effective ads in online shows and podcasts.

The data also suggest audiences are paying close attention to show content and the embedded ads within them which greatly increased ad effectiveness in the studies, said Doug Keith, former Vice President of the Media & Entertainment Group at TNS and currently President of Future Research Consulting. The high unaided ad recall figures are no doubt the results of a less cluttered environment.

Online shows and podcasts have loyal audiences who pay attention to advertisers who support the shows they regularly listen to or watch, said Velvet Beard, Podtracs Vice President of Products. The studies showed a 73% increase in likelihood to use or buy an advertised product which is an indication of successful targeting, the unique relationship audience members have with the hosts of todays online shows, and their ability to quickly move audiences from awareness to consideration to purchase. The studies showed that 69% of audience members have a more favorable view of in-show advertisers, which means a tremendous amount of goodwill goes to advertisers of online shows when show selection is intentional and advertising and ad formats are integrated into show formats.

The 52 podcasts and online shows studied as part of the research include: This Week in Tech, MacBreak Weekly, net@night, and Daily Giz Wiz all with Leo Laporte; MacBreak, MacBreak Tech and This Week in Media with Alex Lindsey; Geek News Central with Todd Cochran; SDR News with Andy McCaskey; Feast of Fools; Filmspotting; and FlashTV.

Spending on online video ads represents less than 4% of all Internet advertising and just 1% of the amount spent on TV, according to eMarketer. But growth is expected with eMarketer forecasting U.S. spending more than tripling to $4.3 billion in 2011. The size of podcast monthly audiences is expected to reach 50 million by 2010.

McCrery is presenting the data at Adtech San Francsico on April 17, 2008 at 11:00 AM PST.

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