THE terms “podcasting” and “blogging” might have made their way into the Oxford English Dictionary, but they have yet to enter the lexicon of British businesses.

According to a survey by the UK Business Barometer, nearly three quarters of small and medium-sized companies have no idea about how to take advantage of the marketing opportunities presented by blogs (online diaries) and podcasts (downloadable audio or visual web recordings).

Many larger businesses, particularly technology companies, are using these tools already. Microsoft uses blogs to disseminate information about its applications and upgrades, while IBM uses podcasts to update staff, investors and the media on business developments. Yet some innovative smaller businesses are also experimenting with how to benefit from the technology.

Peter Bennett, the managing director of London Translations, a small translation service, recently started blogging on his website. He says that there has been an immediate impact: “Last week we blogged about the communication problems ‘Big Phil’ Scolari might face if he became the England football manager. It drove a lot of traffic to our site, increasing our profile as a translation service. But the main benefit is the feedback we have received.

“Customers feel confident using the blog to offer their views on our services — we have even had suggestions about how we could expand our product range.”

Fisher Jones Greenwood, a Colchester-based firm of solicitors, recently started i-legal.info, a website offering podcasts on legal matters, such as wills and probate. Tony Fisher, a senior partner at the firm, says: “Few people are prepared to spend time reading through a turgid legal guide online, but if you present it well they will listen to a podcast about it. About 2,000 of our guides are being downloaded each month and it is helping us generate new business.”

Karen Ainley, the director of Mosaic Publicity, a company that offers audio training, says: “To make a good podcast, you really have to think about what it is you have to say and how to say it. It is not worth doing boring monologues, nobody will listen. Sound-effects and music also help, and encourage people to come back.”

However, Peter Scargill, the national IT chairman of the Federation of Small Businesses, says that blogging and podcasting are not right for every company.

“An engineering works selling sheets of metal probably can’t make a very interesting podcast and they shouldn’t really try,” he says. “Podcasting and blogs are getting easier and cheaper to do, but getting them right can take time, so businesses must decide if it is worth the effort. It can depend on the company, the industry and the profile of its customers.

“Companies should trial these technologies first. They should allow feedback from customers so they know whether it is something they are benefiting from.”

Managers also need to be cautious about who they allow to blog or podcast, he says. “Although companies can use these technologies to project a positive image, they have to be alert to the possibility of disgruntled staff making disparaging comments.”

Another potential problem is that of internet-users and spammers leaving inappropriate messages. “The last thing a company wants on its blog is hundreds of adverts for Viagra,” Mr Bennett says. “We get around this by making sure we monitor all comments before we post them live.”

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