Podcasting - February 2006

Still the next big thing or just another overhyped technology?

The relatively new medium known as podcasting has come a long way in just a few short months. The term podcast was coined and first used in February 2004 by The Guardian newspaper, describing audio content that could be downloaded as MP3 files to a computer or other device (but not to be confused with MP3 music files).

Podcasts started as a kind of audio blog. Inexpensive recording software and weblogs allowed anyone to record and distribute their own audio programs, talking about technology, music, religion, and just about anything else under the sun. They quickly caught on with technology buffs, radio stations, and amateurs, and the number of available podcasts grew exponentially.

Then last summer, Apple effectively endorsed the podcasting phenomenon by creating a podcast directory on its wildly popular iTunes online music store, helping to propel the technology into the mainstream. Now it seems that everyone from the kids next door to multinational corporations are podcasting. Teachers, REALTORS®, accountants, National Public Radio, automobile manufacturers, and even President Bush have all joined the ranks of podcasters around the world.

But how long will it last? Will podcasting continue to evolve and enjoy its sudden popularity, or is it just a short-lived fad? A look at some of the developing trends can help REALTORS® and association executives decide whether podcasts are a worthwhile new method of communication or just another overhyped technology.

What Is a Podcast?

The proliferation of Apple's iPod audio player has certainly helped the podcasting trend, but despite the name, you don't need an iPod in order to listen to a podcast. A podcast is simply an audio program which listeners can subscribe to via an RSS feed. They are often, but not always, updated regularly, and can be downloaded to any computer device capable of playing audio files -- desktop computer, laptop, MP3 player, iPod, PDA, cell phone, etc.

Podcasts are often described as a kind of TiVo service for audio content. They offer a convenient way to distribute, download, and listen to all kinds of Internet audio "broadcasts," whenever and wherever the listener chooses.

Podcasts are available covering just about any topic, ranging from interesting and educational to downright pointless. They can sound polished and professional or just be amateur productions. In fact, it's almost as easy to create a podcast as it is to download one -- all one needs is a microphone, recording software, and access to the Internet.

Potential Uses & Future Trends

The main advantages of podcasts are their portability, convenience, and low cost. Since they are compatible with just about any device capable of playing audio files, they can be used on the go, in the office and at home. Unlike traditional and Internet-based radio, you can listen to a podcast whenever you like, without having to schedule your listening to broadcast schedules. The vast majority of podcasts are free, although a few are beginning to require paid subscriptions.

To help understand the potential impact of podcasting, take a quick glance at some numbers. In an April 2005 report, the Pew Internet & American Life Project found that over 22 million people, or 11% of the U.S. population, owned an iPod or other MP3 player. Of those 22 million, 29% (6 million people) had downloaded and listened to podcasts. Those 6 million people weren't just teenagers; the Pew survey found that high percentages of baby boomers and other older generations were among those who had listened to podcasts. Men and women were equally represented among podcast listeners.

Since the Pew survey was conducted last year, much has happened in the podcast world. No other significant surveys on podcasting have been done since then, but the general consensus is that the technology has certainly exploded in popularity in recent months. During the 2005 holiday season alone, Apple sold over 14 million iPods around the world, expanding the potential audience for podcasts by millions -- and that doesn't include those who use other MP3 players, cell phones, and other devices.

For the most part, podcasting is still in its early stages of development. Like blogs, webpages, and so many other Internet-based technologies, podcasts started out as a grassroots innovation by amateurs and hobbyists, and only recently began attracting the attention of the business world. Now companies large and small are exploring ways to profit from the podcasting boom. For some, this means creating their own podcasts as a way of attracting customers and generating business. Automakers, consulting firms, and others offer informative podcasts with news, interviews, and tips, all while promoting their products and services.

As might be expected, the possibilities of podcast advertising are being vigorously explored. Marketing firms are beginning to buy and sell advertising space on some of the most popular podcasts, which can pull in hundreds of thousands of listeners per month. Many podcasts are also funding themselves through sponsorships, with a short audio ad promoting the sponsoring firm at the beginning of the program. There are at least 20,000 podcasts out there, according to some estimates, and most of them cater to subscribers with very specific interests, creating endless potential for niche marketing opportunities.

Besides advertising, another interesting development to watch is that of podcast search engines. Although there are dozens of podcast directories available on the Web, and general search engines can be used to help find programs, new search engines specifically for podcasts are beginning to crop up. Podzinger and blinkx both create indexes of keywords used in podcast broadcasts, making it possible to search for terms used in an actual program. For example, a search for "real estate" in Podzinger will find recent podcasts that mention the phrase. These audio search engines can be used to locate podcasts that discuss a particular interest, and can help track programs that mention specific names, places, or companies. The technology that enables searching of audio content can only improve, and more podcast search engines can be expected to come online in the near future.

If podcasting is the current big thing on the Internet, the next big thing, some analysts say, will be vodcasting. A number of short video-based podcasts are already available on the Web, and the number is expected to continue increasing, spurred on by the recent introduction of Apple's Video iPod and the widespread availablility of digital cameras, cell phones, PDAs, and other gadgets capable of recording video. Just as podcasts are making it possible for anyone to create their own online radio station, vodcasts are predicted to do the same for television.

Potential Impacts on REALTORS® and the Real Estate Industry

For members of the real estate community, podcasting can be an interesting and useful tool, whether you're considering becoming a podcaster yourself or are just content to listen to a few.

A quick search for "real estate" in podcast.net, iTunes, or any other podcast directory is all it takes to prove that REALTORS® and homeowners alike are beginning to take advantage of this new medium. Hundreds of podcasts are available covering home buying and selling tips, market conditions in specific local areas, viewpoints of real estate and the economy, REITs, real estate investing, and more. At least two technology providers offer services that turn property listings into podcasts. For REALTORS®, podcasting can be a low-cost method of sharing expertise and reaching customers, but it can also be time-consuming and requires imagination to create a program that will keep listeners and potential customers coming back for more.

In addition to creating and using them as marketing tools, there are also plenty of podcasts that cater to the personal and professional interests of REALTORS®. Podcasts on local news and issues, the economy, new sales techniques, technology, cultural diversity, and countless other topics can be downloaded and listened to whenever it's convenient.

Real estate firms and local associations can also use podcasting in any number of ways. Some firms have already begun using podcasts as a way to automatically bring updates on benefits and company information to sales agents and other employees who spend most of their time working away from the office. Associations can also offer podcasts on local industry news, recordings of education sessions, and other presentations.

Podcast advertising and vodcasting are two trends the real estate industry should keep an eye on. Sponsoring or advertising on a podcast may prove to be great ways to reach niche audiences, but keep in mind that the business models for podcast ads are still very much in their infancy. Costs, potential audience, and the podcast's content and frequency of updates should all be carefully considered when buying ad spots in this new medium.

Innovative REALTORS® might consider delving into vodcasting to deliver online neighborhood tours, highlight new listings, etc. Whether or not vodcasting will become as popular as expected, though, remains to be seen.

- F. Heller

NAR's Web Wizard Report - No. 75 (February 2006)

This report is for information only. NAR does not evaluate or endorse the products mentioned this report and is not responsible for changes in company information.

For Further Reading

Podcasting, (Wikipedia, 2006)

Make your first podcast, (Podcasting News, 2006)

Podcasting catches on, (Pew Internet & American Life Project, Apr. 2005)

Podcast chaos be gone, (Wired News, Nov. 30, 2005)

Audible revolution; Online radio is booming thanks to iPods, cheap audio software and weblogs, reports Ben Hammersley, (The Guardian, Feb. 12, 2004)

Pod almighty; Less than two years ago, an article in this newspaper coined a word to describe a new trend for posting audio files online...., (The Guardian, Jan. 20, 2006)

Searching For The Pod Of Gold; As podcasting's popularity grows, companies are seeing dollar signs, (Business Week, Nov. 14, 2005)

Trend: Vodcasting - Video Podcasting, (TrendBlog, Jan. 28, 2006)

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