Abstract Axios material about the problems of the advertising market of podcasts - it is the fastest growing, but still the smallest among other media.
Almost every major media company is embedded in the launch of new podcasts. But most of them do not bring money - at least as long as. As in the case of other new technologies, consumer demand grows faster than revenue.
AXIOS edition allocated the main market problems:
Money and listening - only among major players. 1% of all authors receive 99% of downloads and the greatest earnings on the market.
For example, the subcast department brought NEW YORK Times in 2019 almost $ 30 million revenue. The business direction of Vox Media podcasts also receives tens of millions of dollars. And Spotify spends hundreds of millions on deals with the authors - the company paid $ 100 million Jo Rogan for a long-term contract.
Podcast can not be flashed like a roller in Tiktok. The authors are harder to distribute their releases than video, as this does not have a popular platform like YouTube, Instagram or Tiktok.
"Very rarely someone pops in 1% top podcasts, so the majority focuses on slow gradual growth," said the author BuzzSprout Marshall Brown. The popularity of the podcast depends on the quality of the material and the amount of funds invested in marketing.
There are no clear advertising tools due to chaos with services. The authors place issues on many different platforms. Companies also invest in creating their own services for podcasts, for example Spotify, IheartMedia, Apple, Siriusxm.
Spotify made technological integration of advertising in the podcast: the service adds promo in real time based on the user's location data, the type of device, age and other data. At the same time, other platforms use a more traditional approach - automatically insert radio lines in the issues.
"The market will share in two: between our approach to cutting advertising and the fact that I see in the rest of the industry - advertisements in the style of radio or TV," added Jay Richman from Spotify.
The owner of Podcorn Podcorn Agnes Kozer notes that so far large authors receive the main income from ordinary advertising and depend on the number of listening. But there is a potential for brands that will select the show personalized and receive traffic at the expense of quality issues.
What will happen to the advertising market of podcastsAs Google and Facebook strengthened the digital advertising market, combining the set of IT companies into a single chain, the audio market is also transformed.
For example, Spotify, Siriusxm, IheartMedia, Amazon and others seek to expand the market for podcasts at the expense of their services such as advertising, distribution and hosting. Spotify spent on the purchase of small podcast companies, hundreds of millions to help create a single ecosystem of podcasts.
#Spotify podcasts
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