Monographic course on Internet Law at CEF.- Center for Financial Studies Know the legal responsibilities that exist in the digital environment to protect your company Master in Strategy and Creative Brand Management – UPF-BSM Learn to conceptualize a brand and define its creative and communication strategy. The podcast boom in recent years has been a true revolution in content. Suddenly, everyone began to pay attention to them. Content creators saw a new way to connect with audiences and monetize their work, while advertisers bet on them as a new space to connect with audiences. Now, years later, its golden age seems to be beginning and the market is filling with more and more content. Market data says, however, that the revenue share is not exactly balanced.
That is, although there is a lot of interest in this type of content and it seems that there are more and more players linked to the podcast world, in reality there are some more successful ones that are the ones that take the bulk of the income generated by the market. That is what can be concluded from Altman Solon’s latest study on the matter. Global revenue generated by podcasts between 2016 and 2019 grew annually by over 65%. That is, more and more advertisers are investing in positioning themselves in that content. They do it because podcasts also have larger audiences. It is expected that by 2023 they will already have about 2 billion regular listeners. From 2016 to 2019, the number of global monthly listeners grew by 42%. For the 2020 to 2023 range, an annual growth of 20% is expected.
The average time spent listening to these contents has also risen, but at the same time the offer has risen. Since launching and producing a podcast is not particularly difficult in technical terms, many are doing it. If you add to that that there are many linked platforms, you can also understand this growth data. In general, users use certain platforms for niche markets. In the United States Apple is used as the main access route, while in Europe Spotify dominates. Podcast listeners are generally different from traditional television viewers or music listeners. They are also more engaged now than a year ago: the coronavirus and its effects on daily life have caused them to spend more time listening to podcasts. They don’t do it on the way to work, true, but they do in other areas of their life. Who wins with podcasts But this data is not the only one that helps to understand how the podcast market works and who is gaining from its growth.
In general, podcasts live on advertising and the associated income is growing. In the period from 2016 to 2019, podcast advertising revenue grew by 67% annually. By 2023, expectations are that podcasts will already move more than $ 4 billion in advertising revenue worldwide. The creators of this content have other sources of income, such as donations from listeners or premium services, but advertising is the main one. Although the audience is very varied and the offer is very wide, the distribution of income is not so much.
In the end, the most popular are the ones that take the most important part of the cake. Ad revenue – and reach – is concentrated in the top 15% of podcasts. The greats are those who dominate and who take the most important part of the cast. Of course, those who manage to enter the advertising distribution get more favorable conditions than those of other content channels. The CPM of the podcast is higher on average than the other media. In the United States, the average is $ 18 / CPM. In Europe, they could be higher figures: in Germany, the example country, it moves in the range of 55 to 80 euros.