August 31, 2023 – 3 minutes read – By Sara Guaglione
A variety of brand-new reports on the podcast market in the last couple of weeks are exposing a boost in both listeners and marketing invest in the medium, recommending that, while the shininess around podcasts has actually diminished a little, the market is still growing (and relatively disproportionately for the most significant gamers in the area).
That’s not to state there hasn’t been a contraction in the podcast market this year. Podcast platforms and networks, like Spotify and NPR, have actually cut their slate of programs and gone through layoffs. Paramount stated it would launch less podcast reveals this year than in years past. Some podcasters minimized their slate of programs as part of a technique to refocus their audio companies on flagship podcasts.
But these choices were not always due to an absence of advertisement financial investment, according to Lauren Russo, evp and handling partner of development & & efficiency audio at advertising agency Horizon Media. It’s more so due to the fact that of the puffed up offers that had actually happened throughout the pandemic (when listening peaked throughout lockdowns), she included.
During the podcast boom of the previous couple of years, “leading publishers [were] investing considerably in a number of prominent, star-driven studios and developers that did not emerge and create the return they were anticipating. This has actually resulted in publishers being more conservative and selective when thinking about content positioning and tactical collaborations,” Russo informed Digiday.
Advertisers are continuing to put their budget plans behind podcasts, nevertheless, according to current reports:
- Nearly 60% of firms and marketers presently promote in podcasts, up from 34% in 2020, according to a Cumulus Media and Westwood One Audio Active Group “ Advertiser Perceptions” research study.
- 62% of brand names and firms state they will think about marketing in podcasts in the next 6 months (a nine-year high), and 58% stated they absolutely will, according to that research study.
- A MediaRadar report on U.S. podcasts reveals advertisement costs increased 5% year over year.
- Advertisement earnings for service podcasts grew 30% year over year, thanks to financial investments from marketers like Amazon, Athletic Greens (AG1) and Shopify, according to MediaRadar.
- Advertisement costs grew 26% year over year on criminal offense podcasts and was up 10% on funny podcasts, MediaRadar reported.
The huge growing
While these reports reveal a boost in advertisement dollars going to podcasts, the cash is primarily being invested with big networks, rather than independent publishers, stated David Spiegel, CRO at Betches Media. Holding business are putting advertisement dollars into big podcast platforms or networks, such as iHeart, Spotify or Audacy, he stated.
” There’s no doubt that audio is growing. I do believe that [with] the significant marketers … it does disproportionately weigh [towards] these scaled partners. You understand what, they’ve got to begin someplace,” Spiegel stated. He kept in mind that smaller sized publishers with “a strong focus and an excellent item” are still seeing development which Betches’ podcast advertisement income has actually increased month over month this year.
Russo echoed this belief and stated marketers are concentrated on the biggest podcast programs. “There continues to be substantial need on the top carrying out programs where the bulk of advertisement dollars are designated to the top 500 titles,” she stated.
Public audio business’ Q2 profits were a reflection of this podcast advertisement invest. iHeartMedia, Spotify and Acast reported podcast income development in between 12% and 31% year over year in the quarter. Executives informed investors they were seeing enhancements in the U.S. advertisement market and were bullish on ongoing development. Significantly, Spotify’s CEO Daniel Ek stated in a Q2 incomes call that the choice to sunset some under-performing podcast reveals assisted grow its podcast company.
Recent research studies likewise reveal customer interest in the podcast medium hasn’t subsided. U.S. podcast listenership is up from 46% in 2021 to 56% in 2023, according to a YouGov research study Almost a quarter (22%) listen to podcasts for over 5 hours each week, up from 20% in2022
And according to Voices’ Power of Podcasts Report, 48% of American podcast listeners invest in between one and 3 hours listening to podcasts weekly.