The report has it that podcasting could be clocking $1 billion by 2021. This guide gives you a preview and insights into how Apple, Spotify, and other brands, are using podcasts to grow their brands.
Podcasts have been in existence for almost 20 years now. However, the typical podcast format has come into shape in the previous five years. The medium has thrived tremendously, all thanks to several activities. Some of these activities include a sudden surge of shows and technology growth to boost awareness, such as smart and Bluetooth speakers, and ventures from huge companies like Spotify.
These significant events have played a vital role in the expansion of the podcasting industry. Research indicates that by the end of 2020, there will be over 105.6 million active listeners to podcasts monthly in the United States alone. That is double the number of monthly active listeners in 2015, which was 45.8 million.
This sudden spike in the podcasts’ listenership has interested several brands. Many brands have started taking up podcasts to tap the rising unlimited potential of the podcast’s listeners. As for spending in 2021, the podcast will almost double the total ad spent in 2018. Advertisers in the United States are expected to spend over $1 billion in the podcast industry.
According to the IAB and PwC estimates, podcast advertising in 2018 garnered around $479 million. The growth is because the podcast’s audience is attractive and growing at a fast rate. Listeners to podcasts are educated, affluent, and relatively young. Most of them do not have an issue with podcasts adverts and will use them to their advantage.
As the industry grows, advertisers could have a rough time getting to the young and educated audience. These are smart people who use technology by having programs such as ad blockers in other digital media forms. The podcast industry is currently in an exciting phase. It is at an innovative and creative renaissance where there is lots of discovery and creation going on.
Business Insider Intelligence gives an in-depth understanding of the podcast industry in this report. It mainly focuses on key drivers of the industry. What made the podcast industry boom in such a short time? Where did all that audience come from, and what they are doing to achieve new heights.
This report’s end game is to equip you as the reader with a vivid understanding of the components that make podcasts work for brands. You will understand the key players in the growth of podcasting in different brands. You will also appreciate the various opportunities that this form of digital media presents to businesses and how you can scoop the golden chance.
Companies Mentioned in the Report
Several companies were mentioned, and they include Bonobos, AdvertiseCast, Anchor, Apple, Alphabet, Disney, Barstool Sports, Gimlet Media, Higher Ground, Google, Luminary, iHeartRadio, Midroll, The New York Times, Pandora, NPR, Netflix, PodGrid, Parcast, PRX, Spotify, Stitcher, The Ringer, This American Life, Sirius XM, Wondery, The Washington Post, Unilever, YouTube.
Major Takeaways from the Report
- Podcasts were introduced a long time ago. They have been in existence for around two decades. However, the formal format just hit the mainstream media recently, about five years ago. The industry was not tapped before then, and brands were oblivious of podcasts.
- Podcasts are not only growing in the United States. Other regions are also embracing the industry. Latin America is a region to consider as there is a surge in the Spanish-language content. Many businesses are going to tap into the industry in a bid to grow their brands.
- The podcast audience will appeal to the majority of brands. This is the right audience since they have a reason why they looked for that podcast in the first place. They are likely to be engaging and will have no issue with ads in the podcast.
- Sometime back, businesses were skeptical of podcast advertising, but the notion changed. Brands are now able and willing to spend millions of dollars on podcast advertising since there is a rise in listenership.
- Businesses have a plethora of options on adverts in podcasts. However, the most crucial thing is to ensure you select a show that talks of something similar to what your brand offers.
- Most tech companies are looking to becoming the top destination for the majority of podcast listeners. Some of the big players include YouTube, Spotify, and Apple.
The report talks about the podcast audience and how it has grown tremendously. The audience has boomed both in the outside world and the United States. Latin American audiences seem to have recorded the highest rate of growth.
This report also shows the advertiser opportunities in podcasting. It shows brands how they can capitalize on the podcasting industry as it seems to have limitless potential. Breaking down of the critical platforms applied in audio dominance is captured in the report. The crucial innovation areas include original content and discovery.