YoY Growth of Podcasting & What It Means for B2B Marketers

ABOUT THIS EPISODE

In this episode, Dan Sanchez talks about current news around Spotify's recent acquisitions, podcast ad revenue growth, and the NBA's partnership with iHeart Radio. He then breaks down why it should matter to B2B marketers and where it's all going.

Mhm Welcome back to BBB Growth. I'm dan Sanchez, Friends call me dan says. And as the director of Audience Growth, that Sweet fish Media and a co host of this podcast, I wanted to give you guys an update of what's going on in the world of podcasting and then talk about how and why it matters to B two B marketers. Now, you gotta remember, I'm the director of audience growth for a podcast agency, Sweet Fish Media, the company behind me to be growth. And so I'm constantly paying attention to what's going on in the world of podcasting make sense, right? It's kind of my world. I I read all the news and try to digest it and make sense of it for for what I do here at Sweet Fish Media, if not just for ourselves in the show, but for all of our customers. But I know a number of listeners out there have a podcast who are thinking about starting a podcast. So if that's you, this is a great episode is to stay tuned into. So here's some of the headlines have caught me even just this...

...morning, but in recent days, um, one Spotify podcasting, listening is up 30% year over year as and it's been increasing substantially and steadily year over year. One thing that I'm always paying attention to as a marketer is what comes in fast and what comes in slow, if you guys remember, not long ago, clubhouse came in super fast. At first, it was like one week we were like, what the heck is clubhouse to? How do I get an invite to? I'm on clubhouse all the time. And then what? And then it died right? So like sometimes fast in means fast out. What's more interesting is to see slow and steady growth, even large, steady growth that we're having to see in podcasting. Um, but it's not coming in the matter of weeks, it's not coming in a matter of months, it's coming in the matter of years. Um And that matters because I mean I obviously want to see and have a vested interest in seeing this industry grow, but I don't want to see it grow too fast because Easy in...

...easy out In other news, Spotify. Um with that Spotify ad revenue jumped 627% in the last quarter, which is just ridiculous, like one from one quarter to another, it's jumped that much. I mean if you have been listening to some of these shows and I've been following me on linkedin, you know, I've been talking about how Spotify has been buying up everything when it comes to podcasting. They've been buying up tech, they've been buying up ad platforms have been buying up uh show networks as well as individual shows like joe Rogan's and Call Me Daddy just recently this week. Um, they are buying up all kinds of inventory, right? They're buying up all the small players, the medium sized players and the massive players when it comes to podcasting and all the tech to go with it, to try to build their own ecosystem naturally. This is a big deal for them because audio ad revenue makes up most of their a huge chunk, at least of their revenue, Right? And the other one comes from...

...paid subscriptions. So being able to boost up the ad revenue on all these podcasts, all the podcast listening is massive for them, which is why they're starting to take over the podcasting space away from Apple where podcasting just makes up a tiny fraction of their overall ecosystem. Spotify is going after a hard and they're reaping the rewards now. They're starting to harvest all that effort, all the investment they put into it. They're starting to earn back. I'm sure they will take them a long time to earn back all the acquisitions they've made. But They're betting big on that. Turning back over the next 10-20 years. Uh NBA just to start it, decided to partner with I Heart Radio in order to launch a series of podcasts around basketball. So they're going to bring their archives of audio clips and I Heart Radio and then we're gonna work on a bunch of podcast together. Which is just exciting that major brands are getting into this game. Um but when it comes to the N. B. A. Instead of launching their own, they probably using I Heart Radio is like a distribution channel in order to get it...

...out in front of people. Since I, Heart Radio is the largest podcast network at least in the U. S. So what does this mean for B. Two B. Marketers? All this energy around podcasting. Well as you know marketers we have to pay attention to where the attention is right which is why B. Two B. Marketers generally got behind the times when they weren't paying attention to social right? That started slowly happening. Remember even in my career 10 years ago I remember the first time I had the role title of social media manager and people were like wait what you get paid to play on twitter all day, this is like 11 years ago and I was like uh well I'm not playing but yes I am on twitter all day and facebook right? There comes a time when like attention starts to change and our audiences attention is changing and so we have to pay attention to what they're paying attention to because that's where we want to show up as brands is showing up in front of them. Hopefully in a way that's uh not just...

...interrupting them with our message, but in a way that's interesting and compelling that captivates and polls their attention into something that's worthwhile for them and we need to pay attention to that because that's podcasting is increasingly where more and more of our audiences attention is going and I don't just say that to push for sweet fish media and our podcasting services, I'm telling you this. So you can, I mean you don't have to go as sweet as you can start your own podcast. Like it doesn't cost very much money to throw up a podcast on anchor or sounder, which is my preferred podcasting host. Um they're, they're freemium plans. Like you can get started and record a podcast, just grab an $80 microphone. That's really all it takes to make it sound decent and start recording on. I don't know, I use a $5 Mac app that I'm recording with this with right now and I just go in quickly edit it myself. I do throw it to my team but it would be good enough to publish by itself even without an intro and outro just to kind of give updates like the one I'm giving right now. It really isn't that hard. You can do it now. Of course, some...

...people like more help and that's where sweet fish comes in, but there's so many different ways to win when it comes to podcasting and since more and more attention is going there, it's worth looking into. Is your audience there? Are they listening? Um, have you asked them recently what kind of media they're consuming, Worth it worth asking? The other big take away I have from this is a big one, and I'm going to be talking about this a lot in the future. Like this might be a big, a big part of big segment of BdB growth. Is that the future of media is owned? This is my own personal prediction. Um, but as you're seeing where the investment of all these massive tech companies are going, you can see more and more of them investing in owning their own media. You remember where they were before, right? Like amazon was the biggest buyer of Adwords was one of the biggest buyers of facebook ads, right? Because paid media was a massive game. But I'm slowly starting to see even the...

...big guys shift a lot of their attention and their ad doll or their their budgets over to owning their own media. Right? I mean, it's obvious was Spotify they're buying out shows right and left. But look at amazon, they're buying out whole movies networks. I mean they're looking at purchasing MGM right, buying the rights, The Lord of the Rings, buying out shows and buying whole newspapers like The Wall Street Journal. Right? So amazon's making massive investments. Apple is trying to build out its own shows to compete with netflix. A lot of these big companies are investing in owned media. Youtube makes just as much money now as netflix and that's kind of a user generated content play. But they have an ad or an ad and like a uh pay system to incentivize creators to get over there to make content right. Facebook Snapchat are now getting that game to where they're trying to incentivize creators to come make content on their platforms. Because having the content and the attention with it is what's...

...starting to control the game. It's no longer just being able to buy your way into it. It's about luring people in with great content so that you can have their attention or own their attention at least for the time that you're there, subscribed or watching. Or you can incentivize them to come back all those things introducing go to market excellence, the podcast that bisects the innovative tools and data driven strategies that give forward thinking leaders and edge in today's market. On this show, you'll hear interviews with revenue leader from dan pork head of marketing? S scale matters whether you're looking for best practices for building data models, choosing your go to market tech stack or simply want to learn how other leaders find success. You've come to the right place. Don't believe me, hear it for yourself. You can kind of look at it as functional in terms of what does this, what is the C. R. O.

Ultimately supposed to be responsible for? Obviously revenue? The word is in there, but it can take different shapes and informs for more subscribe to the show wherever you listen to podcasts, let's get back into the show. Another big trend that I'm seeing that is pushing more and more people to pursue a more aggressive owned media strategy is just the decrease in the effectiveness of paid media, right? I feel like I've made my career on the back of paid media first with google ads. I killed it on google ads and then with facebook ads, once they started dropping ads in the news feed, man, I was like one of the first ones in there listening to Ryan Deiss talk about how to configure things and optimizing and trying out different audiences and all the different ways. You can do video ads and retargeting and lead forms and all this kind of stuff, I made my career off of it. But In doing so over the last 10 years I've certainly noticed it becoming less effective. I know others have noticed it too. So with like with advertising especially...

...strong paid social and search ads becoming more and more expensive, people are looking at how to diversify a little bit more for an increasing because it's becoming more and more expensive and where I'm looking at it knowing it's going to become more expensive five years from now. So to offset the risk of that, like sweet fish of course is big on owned media, but even in past companies and other companies that I kind of consult and work with customers, we're looking at owned media to offset that owned media is the way you can keep in touch with your customers, build something they want to consume. And I have a lot of ideas on how to make do owned media differently and better than before. There's a lot of ideas out there because it's a big topic. I just wanted to tease it today because of podcasting, podcasting is probably one of my favorite ways of building an owned media channel. Now, it's not quite as pure as maybe a email or an sms or...

...maybe even a direct mail, right? Where you have their contact information and its platform agnostic, right? You can, you can, you can change your tech, you can change your crm, but the information generally stays the same. You can keep sending that same email, whether you're on mail, chimp or marcato, right? Um versus with podcasting, if they unsubscribe from Apple, it's kind of like, well you you lose track of them, you don't actually get to own the relationship, but it's still a one, you still have them bought into subscribing to your content and it's not controlled by the algorithm, like it is, if I post on linkedin, there might be a connection of mine, but the algorithm might say these connections don't get to see your post in podcasting, they still get access to every single one. So there's differences between different types of owned media, but podcasting is pretty close to what I call the pure owned media, which is your typical email, text, message, and phone number, address, all that kind of stuff. And because the attention is going there increasingly, it is just a fun placed...

...to be. Even now some of you are listening to this, it makes a lot of sense right? Because podcasts are easy and fun to consume. You can listen to it at different speeds. I no, I listen to all mine at two X. You can consume it passively while you're commuting, jogging, doing laundry, whatever and you can binge lots of things all at once and you put it in a queue, it's kind of like how are subscribing to rss used to be before google killed it, right? You can have everything collected that you want to see without you having to go and actively checked the website again to see if they've updated it. It just kind of shows up in your preferred player or a place where you subscribe to podcast with the most recent episodes. It's a great, great medium and that's why, or a few of the reasons why people are consuming more and more of it. So if you are looking at it now is a great time to look at podcasting. I'm predicting that it's going to continue to grow over the next 10 years, even just based on the massive acquisitions, these major companies, they don't make massive acquisitions, so they think they can earn all their money back in one year. They're looking at a ten-year payback...

...period. They're looking at seeing where these things can put them in the long term. So we're hoping to ride that wave with them. The question is, will you get to ride the wave with them? Will you be early enough on podcasting? Do? Uh so is seed. So when it becomes increasingly competitive, you're already 50 100 200 episodes in and have found your voice have tested and tried different things to know exactly what your audience wants to listen to. Are you going to start plant that seed now? Are you going to wait until it's fairly competitive to get started? Like it is on Youtube and I actually think now still a good time to get started in Youtube. Um at least for me to see, still still would be really early for me to be, but that's a different topic for another episode. Thanks for listening to be to be growth. If you liked this episode and you like hearing updates on BBB podcasting, let me know. Find me at linkedin dot com slash i N slash digital marketing dan. And I love...

...to connect and hear from all listeners. So connect with me on linkedin is the decision maker for your product or service at BBB marketer. Are you looking to reach those buyers through the medium of podcasting? Considered becoming a co host of GDP growth? This show is consistently ranked as a top 100 podcast in the marketing category of apple podcasts, and the show gets more than 130,000 downloads each month. We've already done the work of building the audience so you can focus on delivering incredible content to our listeners if you're interested, email Logan at Sweet Fish Media dot com.

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