5 Ways to Use Spotify’s Podcast Growth Strategies for Branding and Marketing

July
31, 2021

6 min learn

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The international podcasting market had an estimated worth of $9.28 billion US in 2019, in accordance to Grand View Research, with an anticipated common annual development fee of 27.5% by means of 2027. There are roughly two million lively podcasts as of this story’s publishing date, comprising greater than 48 million episodes (the latter determine virtually 4 instances the quantity from 2018). Accelerated development within the podcasting area is and would be the persevering with results of improved bandwidth and connectivity of smartphones and digital assistants. The audio streaming large Spotify partly credited the recognition of podcasts for its outstanding 24% bounce in subscribers throughout the remaining quarter of 2020, which additionally helped increase promoting earnings by 29%. A doubling of its podcast listeners validates Spotify’s determination to make investments closely in gifted content material turbines, in addition to its shift into markets past music; with competitors from Apple Music and Amazon Music, the corporate acknowledged the necessity to enterprise into broader sectors. Joe Rogan, for instance, one of many world’s most profitable podcasters, signed a multi-year and unique cope with Spotify that’s price a reported $100 million US. Since arriving on the platform in September of 2020, it grew to become the corporate’s number-one podcast in 17 territories after solely six months. Such a dear deal is uncommon for the trade, after all, one usually constructed on open rules moderately than exclusivity, however the act of spending an enormous quantity on a medium that isn’t core enterprise was telling —  a major shift in Spotify’s technique, however crucial for its development.  Additionally, Spotify’s 2020 acquisition of the podcast tech firm Megaphone — with its emphases on podcast internet hosting, analytics and monetization know-how — means the dad or mum firm can now make streaming advert insertion (SAI) programs out there to third-publishers internet hosting their content material on Megaphone’s platform. Real-time adverts can now goal particular customers, not like different platforms that merely swap adverts out with restricted concentrating on potential. In quick, creators might be in a position to monetize their podcasts extra effectively, and give Spotify the prospect to be a part of a broader market for promoting. Related: Entrepreneur’s Roster of PodcastsWhat is Spotify’s podcast technique, and how is it enabling development?During a Spotify earnings name, firm CEO Daniel Ek commented that the main focus of its podcast technique to date has been to develop listenership amongst current customers and maximize worth from the present person base, partly by diversifying what they’re listening to. This technique has two core results on the enterprise mannequin.1. Audiences are higher engaged, permitting Spotify to generate alternatives to monetize the person base by means of focused promoting (therefore the Megaphone acquisition) and produce an uplift in premium subscriptions. 2. Revenue is diversified to high-margin podcast exercise. The firm doesn’t have to pay a proportion of earnings to music labels; subsequently, it could possibly leverage fastened prices. Exclusive offers corresponding to Rogan’s are being put in place to carry listeners from different platforms to Spotify amidst rising competitors. The firm can be ramping up in-house manufacturing to make extra environment friendly use of budgets. In addition, its current advice engine for music streaming might be utilized to podcasts, placing them in a main place earlier than the inevitable competitors comes from Amazon, Apple and Google. What are the advantages of this technique?There are loads of on-line guides that may make it easier to begin a podcast. Anyone can do it, however, as readers may think, few are profitable. If you pay attention to Joe Rogan and learn his backstory, his outstanding profession reinvent was regarded by the present host as a pastime that simply occurred to develop into successful, however the reality is that there was multidimensional work concerned. Rogan created high quality content material — principally interviews with well-known or in any other case notable friends — that individuals come again for. The present’s development was natural, and with none paid advertising. If others can interact audiences with a equally distinctive model of content material and type, it is going to additionally doubtless lead to development and income. In 2021, 80 million Americans reported being weekly podcast listeners, in accordance to the content material advertising consulting and social media technique agency, Convince & Convert. That means there are extra podcast listeners than there are Netflix account house owners (69 million) within the United States. The statistics level to a demonstrable shift from video to audio media, with podcast followers listening to a mean of eight reveals per week. (*5*), episodes from the internet hosting, monetization and development assist firm Acast boasted a mean listening time of 28 minutes. Few different media channels can boast such engagement. Though profitable casts definitely don’t have to be prolonged. 2 Minutes of Zen, for instance, produced by the toothpaste firm Zendium (with Unilever as dad or mum firm), gives easy “hacks” listeners can apply so as foster a more healthy thoughts and physique. A urged product therein is likely to be Zendium toothpaste — the concept to each interact audiences and join them with a product whereas rethinking an exercise usually thought to be boring.Related: How to Start a Podcast (and Keep It Going)Let’s look at Spotify’s mannequin to discover what classes might be realized:1. They are buying extra listeners (clients) by positioning podcast hosts/friends as specialists within the subject, making a group and discussing present and related subjects, simply as Joe Rogan does. 2. Using the podcast to develop different mediums. In Spotify’s case, the goal was to usher in music streamers by means of unique offers.3. Growing a model identify with visitor interviews, sponsorships from different firms or turning into a visitor on different podcasts.4. Converting a listener right into a buyer, corresponding to with Zendium — the goal to promote merchandise with a name to motion as a part of the podcast. 5. Internal firm updates might be achieved by way of audio podcasts, uploaded to an organization server or the cloud for staff to pay attention to at their leisure. They will assist pace up engagement inside the office for quicker actions and larger efficiency metrics for development.For listeners, audio podcasts are simple to digest, as they are often listened to whereas having a bathe, going for a run or dozens of different each day duties. Podcasts can be out there inside hours after recording begins, virtually immediately selling content material to a worldwide viewers, with loyal listeners rapidly turning into clients should you create a message that resonates. Related: Top 25 Business Podcasts for EntrepreneursWhy small companies want podcastingThe two-plus-million out there podcast quantity is moreover placing when put next to the greater than 600 million blogs. This means, partly, that podcasting remains to be comparatively low-hanging fruit to pluck as a enterprise development technique. Companies who begin their very own now nonetheless have the chance to develop into a pioneer inside an trade area of interest. (*5*), provided that Google analysis reveals that customers want to devour seven hours of content material earlier than making a purchase order determination, the common listening period talked about above is usually a notably useful element of content material advertising.Podcasts are right here to keep, and it is time to acknowledge them as a invaluable inner and exterior enterprise development technique. Related: The 10 Technology Items You’ll Need to Start a Podcast