JPMorgan

The Last Podcast Post We Need to Write

The macro picture surrounding podcasts is pretty astounding. There are now hundreds of thousands of podcasts globally with total downloads now over a billion. On a monthly basis more than 1 in 5 US adults listens to at least one.[1]

This penetration has kept podcasts on the radar of the industry’s Marketing teams for years. And while I understand that inclination, I think it’s about time to admit that the industry as a whole has been unsuccessful in leveraging podcasts as a client engagement tool.

First, consider current deployment. I indexed the 20 largest firms via a simple question: does the firm have an active podcast that can be found on iTunes? Note that I excluded firms with a significant direct channel (e.g., Vanguard and Fidelity) and defined “active” (generously) as having published at least once in the past 6 months.

The answer turns out to be 2. Or really 1.5, because one of those is Goldman Sachs, which produces a regular podcast that is frequently unrelated to its asset management business. If you exclude them, you’re left with JPMorgan who in 2016 has produced:

  • 24 audio podcasts ranging from 7 – 42 minutes, primarily focusing on insight from David Kelly
  • 24 video podcasts that run the gamut from short marketing messages to video commentary

jpm-podcasts

Two other top 20 firms published and abandoned podcasts over the course of the past year. It’s pretty clear to me that podcasts fall short as a useful marketing tool for asset managers, and I see two simple reasons why:

  • Heavily Scripted Content is Boring: Podcasting is, generally, a platform that thrives on the energy and interactivity of the hosts. Within our industry, however, it’s easy to tell almost immediately that there’s an iron-clad script driving the conversation. The energy of a legitimate give-and-take or engaging monologue is all but absent.
  • The Lack of Visuals is a Disadvantage: Discussing the markets and investments is typically data-intensive. Data-intensive conversations are best supported at least in part by visuals (graphs, charts, tables, etc.), none of which translate to an audio-only medium. Therefore an asset management podcast is usually mentally taxing to track.

So it is time to give up on podcasting? I do believe that the best answer is a simple YES. However, for those still inclined to pursue it, there are two avenues to consider:

  1. Focus on Non-Investment Content: Hands-down the best industry podcast I’ve listened to is this JPMorgan episode on the spending habits of retirement plan participants. Unburdened by the careful avoidance of investment recommendations, the two hosts are actually able to have a real conversation that includes banter and personality. It strikes me that broader value-add is a better opportunity than hard-hitting investment insight.
  2. Consider a Brand-Building Approach: Prudential produces a paid podcast via Slate as part of a broader marketing effort. While not a perfect analogy for intermediary-focused asset managers, the Prudential effort points to the potential feasibility of leveraging sponsorship and the $35 million podcasting advertising market[2] as a means to build overall brand awareness. This has some appeal at a time when many firms are at least thinking about how to strengthen their images among individual investors.

moneymind-podcast

I value a contrarian perspective as much as anyone, but aside from the two just-noted considerations I think the industry can leave the “opportunity” of podcasting alone.

Gaudi!

Best Blogs of the Week #248

1 election post. That is all I will bring you. Promise. Overall here are the four most engaging posts from the last three weeks.

Columbia Threedneedle Election 2016: Lifting the cloud of uncertainty – Changes to tax policies are likely regardless of who wins in November. But it’s questionable how much change can actually be effected considering an expected divided government even if Trump wins.

DistributionsJPMorganFatter tails and endogenous risk – Although endogenous risks are difficult to quantify, there are ways to recognize and mitigate them. Analysis of flow data and correlation can provide insight into crowding and cross asset dynamics.  Stress testing can help quantify potential tail losses, and hedging via non-linear products such as options can help protect against the risks.

Loomis SaylesGlobal Growth Themes and Forecast (Infographic) – We’re in a “lower for longer” bond yield environment as inflation in advanced economies decelerates and major central banks—the Bank of England, European Central Bank and Bank of Japan—pursue quantitative easing (QE).

VanguardGood grief! They’re commoditizing index investing again – While it may be tempting to think that the same application of technology can displace the human element of running an index fund, we have not seen that disruption and probably never will. Indeed, people remain one of the most critical differences across providers.

 

Best Blogs of the Week #214

Welcome to 2016. We saw decent activity over the holidays with some very well-written year in review and 2016 forecasts throughout the asset management industry.

BlackRockWhat I Got Right (and Wrong) in 2015 – I didn’t consider that investors would have to pay Germany for the privilege of loaning it money for five years.

JPMorgan5 Realistic Surprise Predictions for 2016 – Brazilian local debt returns 40+%

WisdomTree Major Central Banks Policy Implications for 2016 – … in assessing China’s growth potential, many focus on old economy indicators and miss out on newer economy signals.

Two other posts were excellent in supporting intermediary and institutional investors.

BlackRockA Strategy for Managing Volatile Markets –  … we like it or not, emotions tend to drive many investment decisions and this often causes investors to buy high and sell low, which is the very opposite that we need to be doing.

RussellExploring the risks and challenges of generating yield – When evaluating strategies, it’s essential to consider where yield is coming from and ensure that potential risks are managed appropriately.

2015 – A Year for the Content Juggernauts

In 2015 we saw many firms accelerate their content production. Firms like BlackRock, JPMorgan, SSgA, even WisdomTree, produced more thought leadership more frequently than in previous years. So do all firms need to produce volume like the aforementioned? No but there is some baseline of “enough” required to ensure relevancy. I’d set that bar at 10 unique pieces (inclusive of whitepapers, market commentaries, blogs, etc.) per month for a credible US retail-oriented asset manager. (Contact us and I can tell you why 10).

After reaching that level, an intriguing question to consider: what do we want our content convey? I believe high-quality content conveys a firm’s investment process and philosophy contextually relative to current global market events, in a tone and style resonant with the primary target audience. Firms focused on RIAs will want their content to convey something very different than firms primarily different channels. The first step towards designing conveyance is to understand current state. Ask does today’s content convey our process and philosophy via a unified tone and do we believe that resonates with our primary target?

Publishing Your Consultant Relations Teams

A recent conversation with a client sparked me to look into consultant relations. And out of these six firms, I was surprised to see only JPMorgan puts faces and names for their consultant relations teams onto a public Web page. For this important constituency, I would consider making an inbound connection easier and more personable.

 Firm Consultant Relations Page # of People
T. Rowe Price Yes Unknown
Vanguard No Unknown
 AB  No Unknown
Wellington No Unknown
Northern Trust No No unified page
JPMorgan Yes 5 people