June 23, 2019
For centuries people have shared story and ideas through the spoken word. Growing up I used to tune in to weekly radio shows: one from the current president of Portugal who made a review of world events and recommended new books; and another from a spiritual and personal growth teacher I had. This meant, I needed to plan my life in such a way that I was free and next to a radio at the weekly time slot. Sometimes, I would be sitting at my Dad’s parked car to listen to the program. It was that good.
Podcasts have made this process much easier for consumers:
- Access to a wide range of speakers and content around the world
- On-demand playing – you can download the episode and listen to it at a time and place that suits you.
- Ability to binge watch shows: listening and catching up to several episodes in succession.
Podcasts are still an emerging industry but growing fast. About 32% of Americans over 12 years old have listened to a podcast in the past month. That is almost 3x the penetration of just a decade ago (see figure). The demographic is highly attractive to advertisers: educated, young and balanced between male and female penetration. Monetization also has large potential for growth as, according to Nielsen, podcasts average 1 cent of revenue per active user per hour vs. 11 cents for Radio.