Industry Perspectives: Beyond Compliance—Webcasting Evolves into a Strategic Communications Tool
Business Drivers
There are several factors driving the growth in Webcasting beyond IR applications, including the following:
1. Better Communication
Web-based communications can deliver a rich and compelling message to an audience. According to a Hurwitz Group Report published in January 2002, rich media helps Web site users retain approximately 500% more of their Web experiences compared to text-only and text/static-graphic Web sites. And this increase in retention enhances the effectiveness of sites where the primary goal involves knowledge transfer or education.
As broadband and streaming media technology improves, more companies are taking advantage of the interactive capabilities of the Internet to communicate their message, including using audio, video, and visuals. According to the NIRI survey, 27% of conference-call Webcasts now utilize PowerPoint slides in addition to the audio.
Video is also fast becoming part of shareholder communications. A video Webcast enables companies to reach a global audience, deliver important business information, and interact with participants in real-time. This tool engages the audience with a compelling experience including live video/audio, synchronized slides, and interactive elements like chat, live Web links, Q&A, and polling.
2. Demonstrated Return on Investment
In the current business climate, Webcasting is a cost-effective alternative for many types of communication that can also lead to improved revenue and/or substantial cost savings. The Internet offers an efficient way to communicate your story to your audience, particularly for companies with tighter budgets looking to get the greatest bang for the buck out of their marketing efforts.
According to the Yankee Group, companies using streaming media in sales applications have demonstrated 25-30% reductions in customer acquisition costs. In another case, a company used Webcasting to train more than 200 salespeople without pulling them from the field, allowing them to launch a new product 4-6 weeks faster and cut training costs by 75%.
Webcasts that include robust reporting tools make it easier to measure this payback by providing information on who participated and for how long, allowing salespeople to follow-up on any new leads. In addition, a Webcast has value well beyond the live event. In fact, our experience suggests that for every live listener, three will listen to the archived replay, emphasizing the importance of on-demand archives as part of a company's communications strategy.
3. Faster Time to Market
Companies also have gravitated to Webcasting because of the Web’s ability to get their message heard quickly. In one case study, The Yankee Group compared a traditional roadshow launch with a Webcasting launch and demonstrated a 96% decrease in costs, a 900% improvement in time-to-market, and a fourfold increase in attendance. Time-to-market is also compressed because, rather than producing and delivering an online roadshow themselves, companies can turn to an outsourced streaming provider for a turnkey solution that combines software, services, hosting, and reporting all in one.