Today in the business of podcasting.
Spotify Cuts 1,500 Jobs, CEO Ek Says Streamer Must Be Leaner by Lucas Shaw
Daniel Ek’s announcement this morning signals a 17% right-sizing of the company, focusing on making Spotify operating costs leaner. The decision comes during a Q4 where Spotify projects €93 to €108 million in operating losses. In his official statement, Ek points to both slowdown of economic growth and the increased expense of raising more capital as large motivations for the move. A brief reminder to those both hiring and looking to be hired: the Sounds Profitable podcast job board is always taking new submissions and is 100% free. [Source]
Deloitte: Audio Market To Surpass $75 Billion In 2024.
The 2024 edition of Deloitte’s Technology, Media & Telecommunications Predictions report is now available and it’s got some positive outlooks on audio. The report suggests there’s a fair amount of untapped potential for per-user revenue in podcasting. By their estimates, audio streaming services average about $32 per user annually. Audiobooks make $26/user. Podcasting sits at the back of the pack with a healthy listener base, but just $2/user. Deloitte predicts audio is about to experience significant growth and projects the industry will experience a 7% revenue increase in 2024, passing $75 billion. [Source]
Libsyn Unveils November 2023 Podcast Advertising Rates, and 5 Developments to Watch in 2024
Each month AdvertiseCast publishes the average CPM (cost per thousand impressions) for podcast ad spots across their network. This November the average CPM for a 60 second ad spot reached $22.94, a year-over-year decrease from $24.58 in 2022, but a 2.5% increase from October’s average of $22.37. In addition to the new CPMs, Libsyn shares CRO Dave Hanley’s predictions for things to keep an eye on in podcasting throughout 2024. The list of five includes tech and procedural developments that should reduce persistent brand safety concerns, a potential boom in regional and local advertisements as interest in data-driven targeting increases, and he highlights untapped potential in cause-based advertisers collaborating with podcast hosts, something we will likely see more of during the 2024 election cycle. [Source]
…as for the rest of the news: NPR hires former Gimlet executive editor Collin Cambell to oversee podcast strategy, PodPod reports the BBC is investing more in podcasting as part of a digital pivot, Marketing Brew examines why advertisers are excited about attention metrics, and Horizon Media has outlined 10 Gen Z subcultures for marketers to think about when targeting campaigns.
