CorpComms Magazine

The rapid growth of the internet has caused communications departments many problems, as old marketing strategies bite the dust and malicious 'citizen journalists' populate the blogosphere. Reputations are now harder to build and easier to lose. But there are also opportunities. Companies can interact with stakeholders in a huge number of ways. And they no longer need to rely on traditional media portals to get their message across - hence the rising popularity of the podcast.

For the uninitiated, a podcast is an online audio or video broadcast to which users can subscribe. New podcasts are then automatically downloaded when they become available and can be watched or listened to at the user's leisure. The first podcasts were audio recordings that could be transferred to Apple iPods, hence the name, but a podcast can be downloaded to any number of handheld digital devices or simply to a computer.

Currently, the most frequently used podcasts come from the entertainment world, with output from the BBC proving especially popular. But communications departments also use podcasts for several different purposes. As an example, podcasts are a way for publicly listed companies to add some colour to financial reports and announcements. They allow stakeholders to see and/or hear management talking, which can add authenticity to company messages.

Of course, seeing or hearing management in person does not magically dispel all doubt: Alan Schwartz, chief executive of Bear Stearns, famously appeared on CNBC, television news channel, to reassure investors of the Wall Street investment bank's 'strong' position; two days later, those same investors fled, and Bear Sterns was bailed out by rival JPMorgan. But podcasts of senior management discussing key issues can add a new dimension to dry results statements or enigmatic M&A announcements.

Cantos, a provider of online corporate and financial video, launched a new channel, CEO Direct, on iTunes last month. The channel streams its interviews with top corporate brass. The first person to take part was Sir Terry Leahy, chief executive of supermarket giant Tesco, who spoke about the company's interim results and recent launch in the US.

'When creating a podcast, we travel to the office of the client and set up a mobile studio, usually in a boardroom,' explains Roddy McDougall, Cantos' editor-in-chief. 'Once the interview has been completed, it is edited on the spot and signed off by someone from the company, perhaps the CEO or the head of communications.'

News travels
One advantage offered by podcasts is that they can be listened to on the move as well as at a desk, says Sasha Frieze, chief executive of the Virtual Economic Forum, a media events company. 'Our audience is made up of business people who are very pushed for time,' she explains. 'Podcasts can be listened to while travelling.'

Podcasts are also being used by financial commentators. Business consultancy Deloitte sent out its immediate reaction to chancellor Alistair Darling's first Budget by podcast. CTN Communications, a London-based visual communications agency, carried out the production.

'Many of Deloitte's staff members are based in Bristol, so we sent a team over there on Budget day,' says Stephen Watson, managing director of CTN. 'We created the podcast on the day and sent it out to clients first thing the next morning. The 5-10 minute package also sits on the Deloitte website, where it can be accessed by the firm's employees.'

This highlights another use for podcasting: internal communications. Unilever, the global producer of food brands, sends an audio podcast (also produced by CTN) to its 100,000 staff once a fortnight. It is similar to an internal newsletter, containing headlines about the company and interviews with senior members of staff. 'You could spend a lifetime trawling through the Unilever intranet,' notes Watson. 'Podcasts are a cost-effective way of leapfrogging the communications cascade and getting through to staff.'

Another benefit, according to Watson, is the ease with which communications teams can track the uptake of their message. 'We know the audience for Unilever's internal podcast grew substantially last year,' he says. 'Podcasts allow you to track who is watching and when. For example, they proved a significantly big hit in South America, where, I understand, iPods are extremely popular.'

Selling the concept
Podcasting can be used as an advertising tool, too, but simply putting adverts onto podcasts is not enough. 'It is different from traditional radio,' explains Julian Mayers, co-founder of Yada Yada, an online media firm. 'You are broadcasting to a very narrow audience, people who are choosing to listen to you. Most will not choose to download a commercial. The best podcasts have to be informative and engaging, like the best radio broadcasts.'

Mayers worked with high street bank Lloyds TSB to create a series of five podcasts on how to buy a used car, fronted by former Top Gear presenter Quentin Wilson. 'It was a very specific campaign,' notes Mayers. 'It gave advice on how to buy a used car and then directed people to the Lloyds' loan team at the end.'

Podcasts, like internet television channels, are another way to target niche audiences. To reach analysts, employees or even used-car buyers in need of a loan, they offer a method of tailoring a specific message that can be consumed on demand. The problem with podcasts, however, is the same problem experienced by all broadcasting, and by broadcasting on the internet in particular: getting noticed in a very busy marketplace.

share me: del.icio.us | digg | reddit