Leo Laporte, founder of the TWiT network of podcasts is a pioneer of the new media arena and already a legend around these parts. Although we frequently have the pleasure of hearing him lead his various podcasts, primarily technology based, it’s not often we hear his views on the economics and future of mass media.
In a talk he gave at the Online News Association meeting this week in San Francisco, Leo discusses how advertisers are no longer willing to pay a fortune to reach a mass audience, but rather need to focus on small a highly targeted audience. Laporte said he has costs of $350,000 a year with seven employees now but revenue of $1.5 million and that revenue is doubling annually.
Funny and innovative. Love it.
“Java: The public’s not ready for that!!”
I just love Leo Laporte. I remember watching ZDTV and his “Call For Help” program. I learned a lot from him. Thanks for re-introducing him to me again.
Thanks, Zee… I’m posting this video on my blog — I made a few changes in this quote:
…Leo discusses how advertisers are no longer willing to pay a fortune to reach a mass audience, but rather need to focus on a small, highly targeted audience.
Laporte said he now has costs of $350,000 a year with seven employees. However, he has revenue of $1.5 million, and that revenue is doubling annually.
Takeaways:
1) There is a lot more money to be made covering the death of a princess than in covering technology.
2) The networks try to please everybody and in the process create shows that nobody wants to watch.
3) Smaller audiences tend to be more devoted, engaged, and enthusiastic.
4) Mass advertisers believe that smart people can’t be fooled by advertising/branding and therefore they do not target smart consumers.
5) Leo’s TWiT (This Week in Tech) podcast network has expenses of $350K and generates revenue of $1.5 million. Expenses are static and revenue is doubling each year. They sell an ad for $7,000 ($70 CPM due to high ROI). One ad per 30 minutes.
6) Advertisers now want targeted markets rather than mass markets, and only the internet (Facebook, Google, etc.) can deliver.
7) Podcasting is not growing (because it is too hard for consumers to figure out) so Leo is streaming live (online TV/radio) and partnering with MediaFly to put TWiT on Roku box which allows for streaming and on demand.
8) Platforms are transitioning but people still want information–and they demand quality content, convenience, and the opportunity to interact, participate, and even create.
9) Journalism requires fact gatherers and pundits. Fact gathering is important but tends to produce a commodity that does not generate revenue. Pundits tell stories that people are willing to buy.
10) Twitter is becoming the internet’s nervous system where everybody plugs in to find out what is going on in the world.