NEW YORK (AdAge.com) -- Leo Laporte didn't expect to become one of the largest independent podcasters when he began recording his conversations with former Tech TV
Leo Laporte's Podcast Success Snares Major Advertisers
colleagues and friends John C. Dvorak, Patrick Norton and Kevin
Rose. But it happened and this week he launched the This Week in
Tech (or TWiT, as his fans know it) podcast advertising network, in
conjunction with podcast advertising company Podtrac.
Podtrac measures TWiT's monthly reach at 500,000 and marks TWiT
listeners among the highest spenders online and on software --
which is why the network has attracted Dell, T-Mobile and
Visa. Mr. Laporte's
podcast mini-empire could rake in as much as $2 million dollars in
a year, but he told Ad Age Digital he's more concerned
about how to not ruin the medium with advertising.
Ad Age Digital: You are up to 10 podcasts now -- how did you
get to the point?
Mr. Laporte: Well we've got two more coming -- I won't
settle until I'm doing a dozen [laughs]. The business is being
invented as we speak. There's no model, you can't look to someone
else and say how did they do it? It's not radio, not a website, but
something unique. We've done it organically and as the audience
wanted it. ... [For the TWiT crew] the podcasts are the after-hours
conversation when you get together with others in the same field
and swap stories collegially -- that's how we really learn. ... So
a lot of it was done just for us and I realized a lot of people
would probably want to feel like they were in on conversation too.
... It really wasn't meant to build a network and there was no plan
to put ads on it.
Ad Age Digital: But that has changed.
Mr. Laporte: Originally we just asked for submissions, which
covered equipment, website, office rental. But they grew and grew
and grew and the audience grew and grew and grew. At some point the
light went on and it was like building an audio version of TechTV,
it was more like a network. I said, "Maybe this needs to be more
than a hobby but maybe a business for those people who are doing
it." So the goal has been to start monetizing it so we could start
paying contributors. And that's where advertising really makes the
difference.
Ad Age Digital: So now you ask people to donate -- like a
paid subscription -- and you take advertising. Kind of like a
magazine model?
Mr. Laporte: We're very much like a magazine model, where
the paper and shipping would be paid for by subscriptions and then
the ads pay the staff and help you make a profit. Unlike
broadcasting every additional person costs us money [because of
added bandwidth costs], which is also very much like a magazine.
You do want growth but you have to think about what it's going to
cost you. ... Actually, we're more like public radio where your
listeners are your supporters but you have corporate donors who
donate things like bandwidth and also advertisers or sponsors.
Ad Age Digital: Corporate donors?
Mr. Laporte: We've been lucky to find bandwidth donors in
AOL and Cachefly. AOL
gives us about a terra byte a day. ... I'll publish a podcast and
none of the clients are polite. It's like you have 200,000 people
standing outside your door and you throw the podcast out and they
all jump on it at the same time -- the bandwidth spikes are huge.
So when you throw it out at midnight on Monday, they all pounce.
Podcasters really have a lot of challenges nobody else has had to
deal with. It's not how many bits and bytes you use but how many in
one minute. A video podcast that was really big took the service
offline for 24 hours.
Ad Age Digital: How has your audience received the
advertising?
Mr. Laporte: There's some pushback from audience, which
includes a lot of tech enthusiasts. A certain percent of them think
we should be doing it for free. But we're not the free software
movement, we're trying to create a product. ... I'm an old radio
guy and like the old-fashioned radio model, with the host doing the
ad live in the program, like Paul Harvey, Charles Osgood ... it's
folksy, less intrusive, gives advertisers great benefit because
it's endorsement, it's us saying we like Dell. And it doesn't feel
like an ad. It carries more weight. Americans kind of get it
because they've heard Paul Harvey but in the U.K. they don't do
this. The U.K. listeners are going, wow, we've never heard this
before. When they do an ad they do all interstitials. ... But two
commercials is as much as we'll ever run. I don't ever want to have
more than that -- one, to make audience happy and two, to give the
advertisers more value.
Ad Age Digital: It sounds like you're very concerned about
preserving podcasting for both listeners and advertisers. Could one
greedy podcaster that takes tons of ads ruin the medium for
everyone?
Mr. Laporte: People look at what we're doing at TWiT to see
what makes sense and I'm aware of that responsibility. I'm
delivering the keynote at Podcast Expo and I'm going to address it.
Podcasters are pretty independent-minded ... but all podcasters
agree that podcasting has more value than radio or almost
everything and we deserve a high cost per thousands [of listeners]
and are going to create an environment that's worth it for
advertisers. We don't want to jam it for advertisers. And the
audience will let you know -- they're not passive. It's more of a
conversation than a monologue. ... We need to hold the line and
really deliver quality advertising. It's going to be hard at first,
[podcasters will have to be] turning down advertisers, running
fewer ads than you'd like, not take in as much money as you'd like.
But if we can focus on delivering something of value we can make
both advertisers and listeners happy. It's a great opportunity and
you don't get a new medium very often.
Ad Age Digital: Do you think podcasts from mainstream media
companies will exercise enough restraint in the advertising area or
could they screw it up for everyone?
Mr. Laporte: I hope they screw it up. I see them as using
podcasts to drive to their bread and butter. We're narrowcasters
and they're broadcasters and there's a big difference. "Ask a
Ninja" wants to be "Seinfeld" but people like me and most I know
are narrowcasters. We want to super-serve an audience and develop a
relationship. [Broadcasters] see themselves as delivering a lot of
people to advertisers and inefficiently. But those days are drying
up. There will always be the Tides and Coca-Colas who can afford
that but most companies in this modern world need to be efficient
and they can be by using these new technologies.