Podcasts are expected to generate $1 billion in advertising revenue in 2022 and $2 billion in advertising revenue by 2023.
Marketers are sponsoring and or advertising on podcasts because they work.
We have worked with several clients who have found that the podcasts offer a very highly targeted engaged audience… producing better ROI than radio or TV advertising
Here are 5 major trends:
Trend #1: Subscription Podcasts – A major debate among podcasters is if they should have a subscription podcast or not… some subscription podcasts will have advertising, many will not as part of a pure content service.
Sirius XM is the most high-profile group to create a subscription podcast. They’re doing it with marvel on Apple Podcast Unlimited. Sirius has exclusive content and features, and users get early access to select series. Sirius also is looking at acquiring outside of podcasts, it recently did so with a $27 million deal to acquire 99% Invisible and is looking to strike alliances with talent such as Kevin Hart and Megyn Kelly.
The podcast will cost $3.99 per month.
Trend #2: Advertising ONLY Podcast – Marketers have been moving towards advertising on podcasts in great numbers… getting great results. For example, iHeart Media has emphasized providing a variety of podcasts, providing roughly 600 podcasts on their network that are ad supported.
They believe listeners want free content and that format will be dominant. It also enables advertisers to have a bigger audience with multiple podcasts being used.
Trend #3: Exclusive Podcast Format – This is where you must go to one platform in order to get the content whether its paid or free. For example, Spotify. Spotify believes its model is superior because it keeps the program from other platforms or at least for a period of time boosting engagement within their own app. Spotify will use their different podcasts for their algorithms to promote other shows to their listeners magnifying listeners for them more so than other formats.
Trend #4: Database Model – This is where through marketing and advertising the podcast grows a database which then drives people to the podcast not relying upon the platforms.
The database is successful in that it keeps relationship building and allows additional advertising revenue.
Also, for instance leaving a platform you will have assets where you don’t have to start all over again like Joe Rogan did.
Trend #5: Newsletter Podcast Model – Another model for podcast success is developing the newsletter model.
This is where you start with as large an audience as you can of free content…
Then the next level will be a low-price product…
Then the next level will be a high price product…
This turns the podcast into a money machine.
Interested in marketing and advertising or starting one, give us a call at 615-933-4647 or email Craig at [email protected]
