In this issue
- The Human Cost of Spotify Exclusivity
- Do People Listen to Ads?
- Listening to podcasts together. And what it means for podcasts and their advertisers.
The Human Cost of Spotify Exclusivity
Spotify is in the news a lot because they are by far the biggest spender in podcasting. But their tendency to throw around piles of money has another cost.
The main thing they pay for when they buy out a podcast production company is the ability to put those podcasts exclusively on Spotify. It seems an obvious move, pay the money and the shows bring their audience.
The problem though is that many audience members won’t follow one show to another listening app. Spotify is fairly new in the market and most of the people who have been listening to podcasts for years have the features they like in their podcasting apps. Spotify’s main strength is introducing new people to podcasts, but that’s not what they are trying to buy when they acquire a podcast, or a studio.
We spoke last week about Spotify dropping 11 of their shows from Gimlet and Parcast. They claimed that only a small proportion of the affected staff were made redundant, but it was 38 people now out in the cold.
According to the Gimlet and Parcast unions some of the shows lost as much as three-quarters of their listeners once they moved to Spotify exclusivity. And this is just no way to operate a podcast.
Obviously, Spotify figured that out, but it’s something industry commentators have been warning about for a while. If they come knocking to sign up your show, make sure you make enough for the inevitable cancellation. And make sure your workers are ready for the inevitable.
Do People Listen To Ads?
In a recent survey a large number of frequent podcast listeners complained about podcasts having too many ads. But interestingly, they still mostly listen to the ads!
“Yet complaints about too many commercials mask powerful truths. Overall, 68% admit they listen to at least some of the commercials in podcasts. It’s important to note that commercials read by the podcast hosts themselves are the ones most likely to be heard. Though it must be said that those work most effectively when they’re presented as part of the podcast itself.”
So it’s still a great return on investment.
Listening to podcasts together. And what it means for podcasts and their advertisers.
While you may think about your ideal podcast listener, don’t forget others may be listening. Your show may be reaching as many as 5% more people than you think, as ‘second hand listeners’ around the house or in the car are getting exposed to your show.
Co-listening is also something of a bonding experience, so people will have warm feeling about your podcast or brand from the shared experience.