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Kim Kardashian is Into Podcasts. So is the FCC. Are You?

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Kim Kardashian tweeted earlier this week, looking for recommendations for podcasts.

 

Before you roll your eyes, remember that Mrs. Kanye West is one of the biggest influencers on social media. She has nearly 59 million Twitter followers (more than President Trump). She commands DOUBLE that number on Instagram. Last year, Kim promoted a morning sickness pill on her Instagram and was compensated $500,000 for that post.  Kim Kardashian is now an entreprenur worth an estimated $350 million. People listen when she speaks (or posts). Podcasting could use an ambassador with her clout.

If that doesn’t sell you on podcasts, let’s move to the other end of the spectrum. Look at the old, stodgy Federal Communications Commission, or FCC.  The government agency that’s tasked with regulating the airwaves, net neutrality, and more…is starting their own podcast.  They cleverly call the show “More Than Seven Dirty Words.” In their first episode, they explain that there’s much more to the Commission than cour cases. In their second, they visit Puerto Rico a year after Hurricanes Irma and Maria.

I attended the world’s largest gathering of podcasters, Podcast Movement, in Philadelphia last month. After my trip, I wrote that I was struck by the presence of all the major radio companies at the event. My theory remains that poorly exectuted ratings systems and corporate consolidation have sucked much of the personality out of radio (with some exceptions). Radio came to meet with podcasters and find out how to recapture that magic of resonating with your audience via this emerging field. Now the government arm that oversees radio stations is creating a podcast of their own. That speaks volumes.

Jon Gay, aka JAG in Detroit, is a 15 year radio veteran turned podcast creator, host, producer, and editor. If you want to start a podcast, or need help producing or editing your existing show, you can reach him here.

What I Learned at Podcast Movement

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Podcast Movement is the world’s largest gathering of Podcasters. Over 2,000 hosts, editors, hobbyists and radio people descended on Philadelphia last week to network and learn what’s trending in podcasting.

This was my first Podcast Movement, and it was worth every penny. I’m really glad I bought the Virtual Pass; there were several interesting sessions that ran concurrently and I could only be in one place at once. Here are some of my biggest takeaways from Podcast Movement.

Sound is the number one tune-out factor. If your audio lacks professional quality, people will not listen. Think about the early days of YouTube. People were simply thrilled to watch videos on the web. Now, if the visuals don’t meet a certain level of “watchability,” people…well, won’t.

Your interviews should be transactional. Guests should be able to get value out of the interaction too; it’s not all about you. If guests feel their time was well invested, they are more likely to be a partner and/or brand ambassador.

Podcasts are not simply a marketing tool. They are also a means to connect and create another touchpoint with your existing audience. Podcast audiences can become communities.

Apple Podcasts dominate the space at 63% of total listening. Spotify is #2 at only 9%. Forutnately, overall podcast listening will get a large boost thanks to Google. There are 2 billion Android users worldwide, and they finally have a native app to listen to podcasts on.

You don’t need a niche or audience to start with.  Pat Flynn mentioned this in a keynote. Just dive in and start. Like any muscle, you’ll only improve by using it.

48 million Americans listen to podcasts, but we should be able to hit 100 million. That’s the number that will open the advertising floodgates. Unlike radio, who hold their loyal listeners close, we need to market in different ways to grow our audience.  The first hurdle is destroying misconceptions.

Edison Research’s Tom Webster, in another keynote, showed a very compelling video of real people talking about why they don’t listen to podcasts.  Here are the reasons, among the “non-believers.”

80% think they “don’t have a podcast app.”

62% think they use too much data.

50% think they are too long.

47% think they cost money to listen to or download.

30% think podcasts are only for educational purposes

(By the way, none of these are true.)

Two final takeaways:

I was suprised by the presence of traditional radio companies at Podcast Movement:

Radio is all in on podcasting. I have a theory on this, as someone who worked in that industry for 15 years. While news, talk, and sports radio continue to thrive, the industry removed most of the personality from music radio, at least outside morning shows. Outside Weenie and the Butt, however, most dayparts are syndicated, and we were told a long time ago to “shut up and play the music.”

This worked for a bit, until Pandora, Spotify and their friends came along. Listeners didn’t need to listen to someone else’s playlist when they could curate their own.

Why were DJ’s muzzled a decade agao? A new ratings system provided data showing that “audiences don’t like when DJ’s talk.” The flaw in this interpretation, however, was one missing word. “Audiences don’t like it when BAD DJ’s Talk.”  As a result of this error, we heard less out of our compelling personalities, and now radio is looking to rebuild that intimate connection with their audience. Podcasts do this exceedingly well, and radio doesn’t want to miss the boat.

Finally, I attended Podcast Movement as an editor looking to hone my skills and network with new clients. I was happy to achieve both. Unless you have an extensive audio background, employ an editor work on your podcast to give it a professional sound. And if you’re looking at the cost of a good editor and hesitating because your revenue isn’t there, you need to come at it from another angle.  How much is your time worth? Think about the four hours you’re spending with Audacity or GarageBand, painstakingly editing your show. Now imagine me plopping in front of Adobe Audition and getting it done in 90 minutes.  Is your time worth the money? Is a more professional sounding product?  If so, reach out.  You can reach me here.

The Emotional Connection

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geoffrey giraffe toys r us

This week, the image of mascot Geoffrey the Giraffe, leaving an empty Toys R Us with his rollaboard suitcase, went viral. The picture of Geoffrey was taken by Toys R Us employee Rene Johnpiere and posted on Facebook, according to an article from CBS News.

I share many memes and witicisms on social media, but this picture of a sad Geoffrey brought reactions and comments from people that rarely interact with my posts.

#SoulCrushing #IWasAToysRUsKid

A post shared by JAG (@jagindetroit) on

Why did this visual have such an impact? Two words: Raw Emotion.

The company was founded in 1948, adopting the Toys R Us name in 1959. This means, for almost everyone alive today, they either shopped there as a kid, took their own kids to the store, or both. When you’re a child, life is innocent. It’s unlikely the evils of the world have jaded you yet, and you are able to experience pure, unadulterated joy. That’s what a trip to Toys R Us meant. You may have gone home with a big ticket item like a bike or a Nintendo. Maybe it was just a four dollar Teenage Mutant Ninja Turtle action figure. Perhaps Mom and Dad brought you to the store to reward you for good grades, or rather to cheer you up after learning a hard life lesson. Either way, you’d be hard pressed to find an American that doesn’t have an emotional connection to Toys R Us.

It’s that very emotion that makes this picture so poignant. Geoffrey’s sunglasses are pulled up, he looks melancholy, and the once bursting-at-the-seams-with-toys shelves are barren. It may remind some of their own days of unemployment, or even their parents’ struggles.  There’s cognitive dissonance here; an image we’ve all associated with such unadulterated joy has become a sad reminder of a cruel world. I’ve shown the picture to several people in person, and it doesn’t even elicit the typical “meme chuckle.” Everyone just reacts…sadly.  And the juxtaposition of these happy and sad emotions really makes an impact.

Geoffrey the Giraffe made an emotional connection to kids and parents of all ages. That’s why he was a resounding marketing success that spanned generations. It’s powerful when these kids, many with childen of their own, are getting legitimately upset by this picture.

Emotional connections make powerful content.

When I was 25, my college roommate and best friend, Bill Leaf, was killed by a drunk driver. I was filling in as the night DJ that week in Vermont, and I didn’t know what to do. So I talked about my grief on the air. People with similar stories called. 12 years later, people occassionally still mention my show from that night.

Emotional connections don’t have to be sad, though.  I proposed to my now-wife in September 2016, and we were married in July of 2017. I lived out that whole process daily on the air with my Detroit listeners. The shared experience of planning and having a wedding served as a way for me to create a connection with listeners here.

Think about that emotional connection when you are creating content for your podcast, radio show, blog, or any other entity. Are you sharing common, relatable experience to elicit joy in your audience? Or, maybe you’re sharing something powerful that triggers sadness? Now, I’m not suggesting you manipulate the emotions of your audience for personal gain. People have great “BS” detectors and will see right through that. But I am suggesting, if you can find a way to connect to your audience on an emotional level, that you’re content will resonate that much more.

How are you connecting to your audience on an emotional level?

People make decisions based on emotion, then find facts to justify those decisions later. This is also true of what content they consume. Let them decide on yours by tapping into their emotions.

What Can Razors Teach Us About Podcasts?

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Podcast advertising revenue was at $300 million last year. That pales in comparison with Internet and Television at $69 and $68 billion, respectively, according to Recode.  20 years ago, though, who would have imagined that the web would eclipse TV?

Large advertisers are seeing the tremendous upside in podcasts. Through the use of tracking, brands such as Harry’s, Blue Apron and Ziprecruiter have been in the space for quite some time. However, larger brands like Burger King, Budweiser, Delta, Progressive and Gillette are now jumping in, per a recent article in Radio Ink.

That last one is of particular note to me. Gillette owned the razor market forever, until market disruptors Dollar Shave Club and Harry’s came along. Speaking from personal experience, I was very brand loyal to Gillette, and I accepted the extremely high cost of razors.  I shave my head 3-4 times per week, and I go through razors very quickly. A friend turned me on to Dollar Shave Club, and now I get 4 premium blades per month for 10 bucks. This is perfect, as I go through about a blade per week.

Within its first five years, Dollar Shave Club grew to $200 million in annual revenue, claiming 7% market share. The small startup was acquired by Unilever for $1 Billion in 2016.

Dollar Shave Club (and later Harry’s) found a need in the marketplace and filled it. Gillette, like traditional media, had become “fat and happy” and had little competition for consumers and ad dollars. DSC and Harry’s came along, though, and began chipping away.  That’s where podcasting is today. If you were an early investor in Dollar Shave Club, you reaped the benefits when Unilever came in their 9 figure offer.

A third of Americans have listened to a podcast in the last month, per Reuters and Business Insider. That number may not seem like a lot, but it’s growing rapidly with the advent of smart speakers, word of mouth, and Google’s investment in podcasting. If Android users have the ease of access of their iOS counterparts, expect even more exponential growth on the horizon.  Lather up and dive in.

Jon Gay, aka Jag in Detroit, is a 15 year radio veteran turned podcast host, producer, and editor who can launch, syndicate, and produce your podcast. Learn more at JaginDetroit.com.

Podcasting Revenues Have Doubled – Are You In?

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Is there money in podcasting? In a word, yes.

A new study out this week from the Interactive Advertising Bureau (IAB) shows remarkable growth in the podcast space.

Among self-reporting podcasters, revenue grew from $119 million in Fiscal Year 2016 to $257 million in Fiscal Year 2017 a growth of 117%.

In terms of overall industry growth, the total US podcasting market has grown from $169 million to $314 million in the same time period, an 86% growth.

This more comprehensive indicator of podcast revenue is expected to double again, reaching $659 million by 2020.

That’s a lot of numbers. Let’s look at facts. Podcast listening is exploding, thanks to several factors, including:

  • Smart Speakers Like Google Home and Amazon Echo, aka Alexa.
  • Smartphone capability in cars with Apple CarPlay and Android Auto
  • The vast amount of content available thanks to a low barrier of entry for podcasters.
  • More Americans have heard of a podcast than can name the current Vice President.
  • Listeners’ fatigue with terrestrial radio. With some exceptions, several large companies own most U.S. stations, and have homogenized the content and removed personality.

That last point is important. Local radio was able to survive the advent of television, the Internet, and more thanks to its intimate connection with its audience. When you’re in the car, it’s just you and the DJ. And that personality can paint a picture in your mind’s eye, unlike television. Some hosts still wield that power. Those that don’t are being replaced by podcasts.

It’s this opportunity to create an intimate relationship with a captive audience that makes podcasts to valuable to content producers and their employers.  If someone is listening to your podcast, they’ve sought out your content. This is true of mass appeal shows like The Daily from The New York Times, as well as niche audiences like Four Finger Discount, which dedicates each show to breaking down one episode of The Simpsons.  As of this writing, the cartoon has aired 639 episodes, so those podcasters have some catching up to do.

Four out of five podcast listeners consume all, or almost all of the show. This differs from radio, where impatient listeners are incessantly punching their presets in the car. Sure, podcast listeners enjoy multiple shows, but they often consume them one at a time. You don’t have to resort to old “keep them listening” radio tactics such “We’ve got your shot at $1,000 coming up in 7 minutes!”

One area where podcasts have learned from radio is the “endorsement.” Per the IAB study, “host reads” make up 2/3 of all podcast advertising. This makes sense when you think about it. Listeners are coming to podcasts because they trust the hosts and the material they present. Thus, the hosts of Pod Save America, even if laughing, are more effective ambassadors when reading copy for Ziprecruiter than a voice-over announcer would be.

Here’s the rub. You’re not going to make money out of the gate with podcasts. Sure, you might get lucky and go viral, shoot up the Apple Podcasts charts, get shares from social media giants, or be a talented salesperson who could sell snow to an Eskimo. But the more likely revenue path is to be patient and focus on quality.

The podcast barrier to entry is extremely low. Theoretically, you could create a podcast with just an iPhone and its own internal microphone. Think about this, though. Remember when YouTube started? We’d watch anything! Live videos on the computer – so cool, right? As the tech improved and the competition grew, however, our tastes became a bit more discerning. All of a sudden we lacked patience for low resolution or shaky videos. Soon we started losing interest in anything that wasn’t HD quality. Now, there are YouTube videos with better production value than some television shows.

The same trend is taking shape in podcasting. Sure, your cousin Joey is naturally hilarious, and his podcast of walking around the street was compelling, at least for awhile. However, if you want to be taken seriously, especially by advertisers, you’d better sound like you know what you’re doing.

If you have the financial means and can commit several thousand dollars to recording equipment and a studio, that’s great.  But you need to plan on investing at least a few hundred dollars to launch a quality show. Some costs you’ll need to consider:

  • Microphones
  • A recorder
  • A hosting platform
  • A produced intro and outro (you CANNOT use just any music in a podcast)
  • Editing software or a freelance editor who can cut and mix the audio for you

That’s where I come in. If you want your podcast to sound professional enough to sell to advertisers, you need a professional. I worked in the radio industry for 15 years and had to edit on-air quality audio daily. Since then, I’ve been in the podcast space.  If you’re interested in my help, I can help you conceptualize and launch your show, and I can edit for you as well.  Drop me a note via my contact form here.

8 Ways Podcasts Differ From Radio

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On the surface, podcasts and radio broadcasts are similar. People speak into a microphone with guests and send the audio out to an audience. When you dig a bit deeper though, radio and podcasts could not be more different.

Captive vs. Passive Listening

I spent the better part of two decades as a radio personality, wanting to believe my audience was hanging on every word. Honestly, this was a pipe dream. Think about how you listen to the radio in the car, where most listening occurs. If someone is sitting next to you, you’re probably more engaged in your conversation. If you’re alone, you are frantically pushing presets until you find a song (or morning show topic) you like.  With podcasts, however, a listener has gone to the trouble to specifically download (or stream) your content. They have an active interest in what you have to say. True, they may be at the gym, in the car, or at their desk, but you’ve got much more of their attention than a typical radio show.

On-Demand vs. Appointment Listening

Traditional radio is consumed on the radio station’s schedule. Stations and personalities are taught to “set appointments” for listeners to tune in at certain times for contests or certain morning show features, also known as benchmarks. Ever wonder why radio stations always do things at :05, :20, :35, or :50 past the hour? It’s a way to attract listeners in the middle of the “quarter hour” – think of a clock as a pie split into quarters.

We live in an on-demand world, though. We watch television shows on DVR, we read news articles on our time, and we watch videos when we want. So while radio has to battle the archaic model of dictating consumers’ schedules, podcasts are available when listeners want to consume the content, right there on their phone, tablet, or computer.

For example, I spend about 45 minutes walking my dog in the morning. Before we leave the house, I download two podcast episodes. I’m a Boston native so I grab the 15-minute NBC Sports Boston Breakfast Pod, as well as the latest 30 minute of The Daily from the New York Times, an in-depth look at one of the key news stories of the day. I listen on my morning dog walk, whether it’s 7am, or 9:25am.

Broadcasting vs. Narrow Focus

Radio broadcasters have specific, broad demographics they must hit. This might mean 18-34 year old males, or 25-54 year old females. High ratings in those demographics translate to sales opportunities. Because radio hosts must appeal to these large groups, they often have to be all things to all people. For example, when I worked in the Top 40 (Pop) format, I would have to balance my show between local news, celebrity gossip, funny phone calls, and promoting station events.

Podcasting is different -you are targeting a niche audience. I’ve worked on podcasts that targeted Detroit sports fans, Jewish pop culture aficionados, and those looking for activities in the Detroit Arts and Entertainment scene. You can focus on a geographic area, a particular interest, or a group of hobbyists. The key is that you have to offer something unique in your podcast that listeners won’t find anywhere else.

Time and Content Constraints

When you’re a morning radio or talk show host, everything has to fit into a specific window. An hour only has 60 minutes, with a certain number of those minutes dedicated to commercials, traffic, weather, and other static content. When you’re out of time, you’re out of time.  This is even more extreme for music DJ’s, who may only have a 15-20 second window to speak over the intro of a song before the artist’s vocal begins.

Also, hosts must adhere to FCC content guidelines.  There are a number of words you can’t say on the air, and you can’t be overly sexual. Violation of these rules can lead to listener complaints, fines, and even a loss of the station’s FCC license. Without that license, you cannot broadcast on FM or AM.

Podcasters have much more freedom in these areas. There is no time limit on a podcast. If you have a great guest or compelling topic, you can run with it until you feel you’ve done your due diligence.  If the content keeps your listeners’ interest, they will stick with your show. Even longer podcasts (over an hour) are showing promising retention rates. Unlike a radio show that keeps going with or without you, a podcast can be paused and resumed the next time you’re in the car, or after that meeting at work.  For example, in my 2015 sedan, if I’m listening to a podcast via Bluetooth when I turn the car off, the podcast will resume within a few seconds of me restarting the engine.

While podcasts do have the freedom to air explicit content, hosts should be very careful in this area. Know your audience and know how much of an appetite they have for foul language and/or sexual content. For example, the hosts of the wildly successful Pod Save America are former Obama staffers who are incensed by the actions of the Trump administration. And while I agree with them on many points, I find the number of “F-bombs” in their show very off-putting. Another key point: Apple Podcasts (formerly iTunes) is still the dominant podcast platform. If your show has explicit language, you must mark it as such when uploading your content. If you don’t, and a listener reports you, Apple could delist your show, crushing your potential audience and download numbers.

Music Royalties

Radio stations pay rights fees to publishing organizations such as ASCAP, BMI, and SEASAC to air (and stream) the music of artists and other composers. This is, at present, not an option for podcasts. As a result, you may not use copyrighted music or content (even snippets) in your show. This could result in delisting of your show, or worse, a lawsuit.

In the Ether vs Online Forever

We’ve all heard the cautionary tales of social media. Once you put something on the Internet, it’s there forever. Even if you delete a tweet or a snap, someone can always screen-shot it for perpetuity. Radio broadcasts go over the air (literally) and are gone. Podcasts can stay online forever. The advantage here is that as long as your shows stay online, you never know who may hear it, and if it could go viral. I’ve heard of shows that are years old suddenly catching fire because the right influencer stumbled upon and shared it.

Monetization

While revenue for radio stations has dropped over the last several years, they are still making money. Very few podcasts are. Podcast listening is expected to grow 85% in 2018, and revenue will eventually follow, but the business model isn’t there yet. Podcasts still have to overcome the fact that many people don’t know HOW to listen, and that’s hurting growth. What’s important for a business to remember is this: While you may not see a direct ROI on your podcast, a podcast gives you a chance to build brand awareness and spend time with your business’s most passionate customers. Podcasts CAN make money, but it often takes years, hard work, and a little bit of luck. To hear one such success story, check out my interview with Lauren Levine, co-host of The Margarita Confessionals, an award-winning show out of Charlotte, North Carolina.

Barrier to Entry

It’s not easy to get a radio job. In this world of corporate consolidation, it’s just as hard to keep one. From 2006-2017, I was laid off from radio stations due to budget cuts three times. And each time, it took several months (and usually a cross-country move) to find my next opportunity. Many stations no longer have full staffs. For example, when I ran a station in New Orleans, I was the only full-time employee of the station. Corporate mandated that I run several national shows, and I shared internal resources with the other stations in the building.  There are fewer jobs available now than ever before.

Conversely, anyone can do a podcast. In concept, you could by a cheap mic, plug it into your phone or computer, and upload it to Apple Podcasts.  And if you’re doing it as a hobby for your friends to listen to, great. To build a successful podcast, however, you’ll need to invest in microphones and recording equipment or renting studio space.  This can range in cost from several hundred to several thousand dollars, depending on your budget. That’s why I’ve started helping people create, record, edit, and publish podcasts.  For more information on how I can get you set up, feel free to contact me.

For a few more perspectives on the differences between radio and podcasting, check out these links:

Podcasts Are Different From Radio Shows…and It Matters

Radio: Co: Difference Between Live Radio and Podcasts

Quora: Difference Between Radio and A Podcast