Wednesday, May 07, 2008

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

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

Business Wire via NewsEdge Corporation :

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 16, 2008--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

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, Podtrac's 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, Podtrac's 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 today's 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

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's Leo Laporte; MacBreak, MacBreak Tech and This
Week in Media with's 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.

About Podtrac

Podtrac is the world's largest Podcast and Online Show Advertising
Network. Podtrac's provides advertisers and creators of online shows
with the first complete system for media buying, advertising insertion
and measurement. Podtrac has developed the largest database of podcast
and online show demographics worldwide representing more than 22 million
U.S. listeners and viewers. Podtrac is privately held with headquarters
in Washington D.C. and offices in New York. For more information contact
Podtrac at:

buzz this