Podcast Companies Begin to Advertise Like Hollywood Studios - WSJ

This gives the companies more control over hosting and distribution of podcasts, which will allow for better targeting and dynamic insertion for ads. Under this new paradigm, advertisers can achieve the same level of targeting and scale available on the Facebooks and YouTubes of the world.

It’s becoming increasingly common to monetize podcasts via a direct connection with listeners, whether via merchandise, donations, live events, or bonus or ad-free content. Big networks and publishers are doing it (e.g., Wondery Plus, Stitcher Premium, Slate Plus) and independent creators are too (via Patreon, Memberful, or other solutions).

Think about Spotify’s podcast business as an example. A few years ago, the streaming audio giant evolved from being only a music service to being one for other categories of audio, such as podcasts. Given the content and experience differences between music and podcasts, many hoped the company would launch a dedicated podcast listening app to offer... See more

What happens in this scenario is that a few giants, not just Spotify, ultimately become dominant vertically integrated podcast, distribution and advertising platforms. These will then cut deals with each other, and cartelize the industry into a land of giants, much as Disney is doing in Hollywood. (In fact, I wouldn’t be surprised to see these two ... See more

If you’re a regular consumer of podcasts, you may have noticed a change over the past few years: many of the world’s most popular shows (and maybe some of your favorites) have started including the ability to watch instead of simply listen. While video podcasts are not a new concept, they’re quickly becoming mainstream and will soon represent the m... See more

The trouble with podcasts is that they are difficult to grow: while text can be shared and consumed quickly, a podcast requires a commitment (which again, is why advertising in them is so valuable).

Beyond creation, there are exciting innovations for fan engagement and content monetization. Audio has been notoriously under-monetized relative to other forms of media. So far, we’ve seen products like Glow, which offers a way to distribute and monetize premium podcast content.

More advertisers and better ad delivery: Most of the major tech platforms aren’t satisfied with just capturing podcast market share. They’ve also invested heavily in podcast hosting and ad tech, acquiring companies like Anchor, Megaphone, SimpleCast, and AdsWizz.