Audio has grown a lot in recent years. More and more content is being listened to and more services that depend on audio are used, such as digital assistants. Switzerland Email Database The coronavirus pandemic and the consumption patterns that have stemmed from it have only accelerated this change. But what is happening to the podcast market and what should marketers be aware of? A recent study has analyzed the state of things in Europe.

The first big piece of information that the study has established is that podcasts have grown a lot in Europe, but that they are not yet sufficiently monetized. Thus, 25% of the entire population of Europe already listens to podcasts. Between 2015 and 2020, the penetration of podcasts in the European market has tripled. The numbers are still a bit lower than the US market, but that just means that the European podcast market still has room to grow.

The growth, even so, is being quite parallel, at least in listeners and market penetration. In advertising, it is not so much. Audiences may be similar, but ad amounts are not.

In the US, podcasts generated advertising revenue of nearly $ 800 million in 2020. In Europe it was only $ 75 million. This makes the average value of an American listener much higher than that of a European one. Twelve times more income is obtained from the first

An ad culture problem
Why is this happening? The point is that a certain podcast advertising culture is still lacking in Europe. Compared to the US, where the industry is increasingly aware of the advertising potential of the podcast and its value, this is not happening as much in Europe. In the United States, we are already working with the awareness that ads have a greater impact on retention and engagement. In Europe, except in the British case, advertising sales have stagnated.

The study has identified a couple of reasons that have slowed the podcast advertising market in Europe. The lack of local content (podcast listeners are, like streaming, global and go to content sources anywhere) has meant that there was not as much pull among advertisers.

The industry was overly reliant on radio content libraries, in the face of the much more diverse US market with many more pure podcast players. That is changing right now. The pull of platforms specialized in audio content (in Spain the study points out iVoox) makes the market grow and that it does so with new and own content.

What the future will bring
Therefore, the market in Europe is in a phase of potential growth and in which advertisers have everything to discover and conquer. The study expects that between 2020 and 2026 podcast advertising revenues in the US will quadruple and that the market will consolidate.

Europe will lag behind, but that may, we add, be an opportunity for advertisers, who will be able to explore new formats and arrive before the listener is saturated, and for platforms, which will succeed if they can fill these gaps.

To this we must add that both have the example of the United States to see what has been done, what has worked and what has not, which allows them not to start from scratch and avoid certain mistakes.
“The French model, which inspired the current Financing Law, has four financing channels for public television: royalty per television, 0.9% on the income to telecos, 3% on the advertising income of private televisions and a presence advertising display only 25% “said union, as collected CincoDías .

It would not, therefore, be an absolute return of the ads, but a very limited advertising load. The UGT also points out that, if the ads return to TVE, the canon for private TV would disappear.

The union is not the first to speak of a return of advertising to TVE. The Association of Communication Users also requested it in 2013 and 2015 . In their case, they believed that it was the only way for television to be sustainable.

Will the announcements return to RTVE? It remains to be seen. Of course, if TVE recovers the advertisements in that hypothetical future, it will do so in one of the most complicated moments for advertising on traditional television.

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