Today in the Business of Podcasting
Audio ads can be effective, but only if they’re not disruptive: report. By Alyssa Meyers
The Sound of Suitability, a new report from Integral Ad Science, surveyed 1,000 U.S. digital audio listeners in June. Echoing Sounds Profitable’s findings last year in After These Messages, host-read podcast ads drove the most purchases (49%), but announcer-read follows closely behind at 45%. While 44% of respondents said they’re open to hearing audio ads, 58% stress the importance that ads are relevant to the content it’s being served in. As far as advertising on brand-unsuitable content is concerned, respondents were more likely to react negatively to ads on music with unsuitable content than podcasts with the same content. 55% of respondents reacted negatively to brands running ads between violent songs, but only 32% had the same reaction to brands in a podcast discussing violence. [Source]
“Without margin, there is no mission” by Ariel Shapiro
After co-writing a piece about WNYC’s new broadcast to podcast strategy and layoffs in New York Public Media, Ariel Shaprio reflects on the corporatization of public media. Institutions like NPR and WNYC’s parent organization New York Public Radio have seen a significant drop in corporate sponsorship, leading to financial issues like NYPR’s recent layoff announcement. Without content that drives profit, even a non-profit organization has a hard time keeping the lights on. Shapiro questions if this will lead to a decline in thoroughly-reported journalistic podcasts in exchange for simpler, immediately engaging content. Coincidentally, last Friday’s issue of Eric Nuzum’s Audio Insurgent newsletter specifically covers the traps public media has fallen into, and how the medium could dig itself out into popularity and profitability once more. [Source]
What does the narrowing range of streaming service CPMs mean for advertisers? By Paul Verna
According to new data from eMarketer, CPM rates (cost per thousand impressions) are trending downward for top streaming services, with the gap between the top four narrowing. Since Q4 last year Netflix’s average CPMs have shrunk from $59.50 to $47.05, within less than fifty cents of Disney Plus’ current rate. Peacock sits at just over $40 and Hulu brings up the rear with $23.32. The parallel here for podcast advertising is that prices can and will adjust to meet demand. More competition leads to more inventory, which leads to less competition demand. The Insider suggestion for advertisers is to mix connected TV buys with linear TV to improve campaign effectiveness. As The Medium Moves the Message demonstrated earlier this year, podcast advertising rivals that of TV. [Source]
YouTube passes Netflix as top video source for teens by Kif Leswing
A new survey of 9,193 U.S. teens, run twice a year by investment bank Piper Sandler since 2001, finds teens are watching more videos on YouTube than on Netflix. 29.1% of respondents’ daily video consumption time is on YouTube, compared to 28.7% on Netflix, the first time YouTube has passed Netflix in the study’s history. It should be noted the survey bundles TikTok statistics in with other social media apps instead of its video platform competitors. YouTube has made itself a one-stop shop for video and podcasting content. Netflix has a veritable fleet of podcast content, which raises the question of how much more younger audiences would find that content if it was available directly in the Netflix app. [Source]
Brands are taking notice of Gen Alpha by Jasmine Sheena
With tight legislative restrictions on collecting data on children under 13 without parental permission, advertisers have been getting creative on meeting Gen Alpha where they’re at. Refuel Agency promoted a Where’s Waldo TV series in 530 schools by developing branded activities and curriculum for teachers to use. Branded experiences in the game Roblox have become common enough even brands like Walmart have their own level. The new fruit snack and juice brand BloxSnax was created by a group of YouTubers, who brand each flavor after a different content creator with controlling stake in the company. Given the rising popularity of Kids & Family podcasts, and the adaptability of podcast advertising, our industry is similarly primed to reach the newest generation both through their parents, and through branded content. [Source]
