There’s a terrific new report that the Tow Center for Digital Journalism – an institute within the Columbia University Graduate School of Journalism. It has published called A Guide to Podcasting. It’s an unashemedly US-centric view of the podcasting market in 2015, detailing the history of the medium, and presenting a series of case studies of big US podcasting operators.
It’s well worth a read if you’re curious to see where podcasting stands today.
The report is long, and I’m not going to go into it in full. Instead I thought I’d pull out a few key findings, and add some of my own thoughts to them. Some of them are things I’ve talked about before, but in each instance, I think they’re especially worthy of note.
The massive skew in mobile podcast consumption towards iPhones. The Tow document quotes a LibSync report that shows that there is currently a 5.4 to 1 ratio in favour of iOS devices over Android ones in the mobile market. Whereas the report notes that there something like one billion Android devices set against 470m iPhones.
I’ve stolen this wonderful (US focused) chart which illustrates this perfectly.
Note that this report seems to have been written before Google announced its entry into the podcasting market. But the report does note that there’d be likely to be developments between the report being completed and it being published. The Gimlet case study also misses out on their recent second round of funding.
67% of US podcaster are aged 18-34. They know how to use the technology. It’s not that it doesn’t appeal to other audiences as my septuagenarian father can attest, once he knew how to use the BBC iPlayer Radio app on his tablet. So it’ll be interesting to see how ages broaden out as podcasting increases. In the meantime, the 18-34 audience is one radio broadcasters are very worried about losing.
Podcasting really needs to broaden its user base. The previous two points are key parts of that – growing users beyond one type of phone, and getting those aged over 35 to listen. And the current audience can only listen to so many podcasts – something my inordinately sized PocketCasts library can attest to. Indeed the report suggests that it’s just six podcasts on average per week.
Slow and steady growth. As the report makes clear, podcasting has been around for a long time, and it’s had its moment in the sun before Serial came along (Season 2 out now!). The report includes a chart that shows podcasting as having had slow and steady growth since its inception.
The report goes on to note that the Serial phenomenom actually happened at time when the iPhone podcast app had just been separated out in iOS as its own app, and as the wider media was covering podcasts more. Both of these will have given it a healthy push.
I’d compare podcasting growth to UK DAB growth which has also been slow and steady rather than explosive as some consumer technologies have been. I wonder if this is a factor of audio? It’s not quite as sexy as video, but we still like it.
Searching for podcasts is an overall bad experience. iTunes is not great at surfacing podcasts beyond ones that are either popular according to its secret algorithm, or the handful that iTunes’ editors choose to feature on their site. Other podcast providers have similar issues.
The popular example of a company who manages this well is Netflix and its ability to aid viewer discovery. I’m not sure that’s the best answer – my experience is that all sorts of rubbish gets thrown at me. But I do hear very positive things about Spotify’s Discover playlist with regard to music listening.
Instead podcasters have to rely on social sharing and working within their own networks. Thus both Serial and Gimlet’s Startup launched by being included in the This American Life podcast feed.
That’s an opportunity only avaialble to a very limited number of podcasts and not at all available to those outside, say, US public radio circles. On the other hand it greatly aids those burgeoning podcast networks like Panoply and Gimlet. They can properly support and promote their own shows. An independent producer is going to struggle unless they have the budget to buy promotional airtime on those same shows – a route to market that others have taken.
One of the most exciting elements of Google enterting the podcasting space is what it can do with search. As well as utilising metadata, it’d be interesting to see if voice-to-text technology as utilised by Google Now, Siri and Amazon’s Fire and Echo devices, could be set to work on podcasts to provide more context for audio files, and enable discovery.
In car listening has its place. Cars are important, but it’s worth noting that while 44% of US radio listening is in car (according to a 2014 Macquarie Capital report), in other markets that aren’t as car-centric, it’s much less. For example it’s only 20% of radio listening that happens in-car in the UK. And in any case, new technology added in the car today doesn’t fully flow through the Car Parq (the industry term for all the cars on the road) for a number of years to come – 11 years on average in the US. In other words, just because a new off the assembly line car today comes with Apple CarPlay and Android Auto, it’s going to take a while before everyone has the ability to seamlessly stream audio in their cars without a combination of 3.5mm jack leads, Bluetooth connectivity or even FM re-transmitters.
Data issues. Not only are mobile podcasts disproportionately listened to by iPhones/iOS devices, but the bulk of traffic is delivered via iTunes – 70% is claimed in the report. That’s both a blessing and a curse. Apple was a very early supporter of podcasting, and therefore everyone should be thankful for them. On the other hand, they have the whip hand when it comes to data. Advertisers would like more data, as would podcast producers. I’m certain Apple could provide additional data were they to choose to, but that would involve changes in user agreements and generally it’d be doing work for little to no reward. (Plus nobody needs and even longer iTunes User Agreement!)
The report notes that Apple’s most recent iOS update actually favours streaming over download, with the latter taking an additional click to play back. Streaming, of course, provides more data than consumption of a “dumb” mp3 file.
Meanwhile, as well as adding dynamic advertising into podcasts at time of delivery, another area that is being developed according to the report, is the use of tracking pixels. Now I must admit that I’m unclear how this will work. Ordinarily such pixels are used to track digital advertising in web environments where there is live data. So a hidden pixel is delivered and the fact that it was shown means that you have some data about where and when it was delivered. But pure podcasts are simply mp3 files. While they might have “album artwork” embedded within them, I’m not aware that this would allow for any tracking. Indeed, when you’re listening to an mp3 offline, there simply isn’t a feedback mechanism.
Within bespoke apps this might be possible, and certainly platforms like Spotify employ it, although the free version of Spotify which displays advertising requires internet access.
Direct and foundation support is more normal in the US. Most US public television and radio is partly funded by viewers and listeners. The audience is regularly asked to dig deep and contribute. If you enjoy these programmes, then you need to pay is the message. That’s why this has been a key way a number of podcasts have supported themselves using a direct funding model.
But this is not something that’s “normal” in Britain and elsewhere. If there’s a pledge drive happening on TV or radio, it’s for charity. For some, it’s actually a bit “embarrassing” and runs against the traditional stiff-upper-lip attitude we have as a nation.
Now it’s certainly true that the landscape is changing, and more people are getting more comfortable asking for monetary support.
There is not really a history of foundations supporting radio and television services. These foundations just don’t exist in the same way in the UK, where spending of that type might instead be focused on visual or performing arts. Instead, across Europe, much public radio is supported by various forms of licence fee. Notably the UK television licence pays for all BBC Radio as well as BBC TV and other services. This is undoubtedly changing as podcast listening is not limited by borders (Hence I hear all sorts of advertising for products that are unavailable to me). And Radiotopia’s fundraising success internationally was such that it saw fit to hold supporters parties in various parts of Europe.
But philanthropy tends to reveal itself in different ways in different countries – so the US model does not necessarily work internationally.
Podcasters need to own their direct relationships with the audience. This is an important one. The case study on the Reveal podcast makes this point well. Obviously podcasts do have a relationship between themselves and their listeners, but they don’t own it. Without direct intervention, a podcast producer does not know who you are. And that places them at something of a disadvantage.
When you hear a podcast urge you to sign up for an email newsletter, like them on Facebook or even follow them on Twitter, that’s because these are they only ways they can form a relationship with you. As it stands, that relationship is actually “owned” by the podcasting platform – so Apple in all likelihood.
The reason that magazine and newspaper publishers have always been so keen on you taking out a subscription is not just that they have a guaranteed form of income, but that they get to add a name to their database. And they can develop a direct relationship from there. That could be selling additional products and services, or learning more about the audience.
Indeed a podcast producer needs to think, “What would happen if for some reason Apple shut down podcasts tomorrow?”
No, they’re not going to do it. But they could. It would be a painful, and very probably expensive business rebuilding that audience.
The only podcast I can think of that I subscribe to that knows who I am is The Cycling Podcast, because I’ve paid to become a premium member. They have my email address.
It’s the same argument some news providers have had with Apple – sometimes falling out with them. Apple owns the relationship (and takes a healthy cut of subscription revenues). The middleman has the keys to the castle.
In subscription television, the same is often true. It’s why BT Sport went around quite a convuluted route to get Sky viewers to register directly with them to enable the BT Sports channel rather than the less painful route of adding the channel via a few clicks of the remote control. Now BT knows who those Sky subscribers are. If they hadn’t taken that route, they’d have just known how many subscribers they had.
And finally, if you know who your customers are, you can also more easily shift platforms should you ever wish or need to in the future.
The ethics of podcast advertising is not straightforward. There was a very good recent episode of Gimlet’s Startup podcast looking at money and in particular what the company would and wouldn’t do. It’s really worth listening to if you’re interested in this area, as it explores many of the issues. Indeed Gimlet has always been very upfront about how they work advertising into their podcasts.
In the US, the most effective type of podcast advertising has proved to be presenter-read adverts. They tend to be delivered in the same tone as the overall podcast rather than from a specific script. The way the advertising is weaved into different podcasts can vary a good deal – the listener sometimes only belatedly realising that they’re actually hearing an ad. Sometimes specific music is used, or words along the lines of, “And now we must thank another sponsor…” But neither of these are always the case.
The presenter-read model can also lead to a lot of implied endorsement of products. Perhaps the presenter has indeed used the product and strongly recommends it. But are we certain? Indeed an earlier season one Startup episode also examined this area.
And what happens if a product maybe isn’t best-in-class? Their money is still good though…
Another “ethical” question is the use of native podcasts, or ad-funded podcasts. This kind of advertising is considered both very effective and profitable. There are clearly lots of companies now interested in having podcasts made for them.
But how do they get promoted? What’s the mechanism for launching them? Do you drop them into your regular programme feed? Or should potential subscribers be pushed in another direction?
If you ask different people these questions, the recent Startup episode suggests you’ll get different answers.
The current case to look at is The Message, which is paid for by GE and produced by Panoply. It’s an SF drama delivered in the guise of a presenter-led podcast. I’m not aware that the full podcast was placed in any other Panoply streams. Instead there were a number of promotional trails (in radio parlance) and ads promoting the series.
But it seems clear that there are no firm rules across the full podcasting environment and what some people will do, others will be uncomfortable doing.
Networks – them and us. The way things are working at the moment, the big networks are best suited to prospering. But what about smaller or independent podcasts? Is there a way through?
The beauty of podcasting originally was that it’s very cheap and easy to do. You can make a professional sounding podcast with an inexpensive microphone, a laptop and free editing software.
But in many ways podcast networks are raising the game. They have more resources, they have sales teams to sell advertising, and they can cross-promote their own new podcasts.
If you’re not part of a big network or broadcaster, you probably are at a disadvantage. You’re not out of the game – but like indie films versus studio blockbusters, or independently published books versus those from major publishers, you’ve got your work cut out for you. On the other hand, there are ways through.
More disruption in types of podcast is needed. It does feel like too many podcasts are just public radio programmes that might have previously existed given a fair wind and a friendly commissioner. There surely needs to be a wider range of podcasts dealing with a broader set of interests? Currently many of the more popular podcasts can feel very middle class. And that’s not surprising because it does seem like every half-decent producer in the US who was working for public radio has been poached by a podcast producer or network!
This isn’t necessarily true of all podcast types, but I tend to think it is true of the bigger shows in terms of listeners and awareness.
Finally the Tow Center report is also accompanied by a very smart interactive timeline telling the podcast story from a US perspective.