Sounds Profitable

There has been a cooling of Google and YouTube's enthusiasm for podcasting as of late. Bryan Barletta details what they can do to to heat things back up.Frequency Webinar Signup Link.Credits: Written by Bryan Barletta Edited by Tom Webster Assembled with Spooler.fm Hosted by Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.

Manuela: This is The Download from Sounds Profitable, the most important news from this week and why it matters to people in the business of podcasting. I’m Manuela Bedoya. Shreya: And I’m Shreya Sharma.This week: The ‘slippery slope’ of podcast endorsements, Netflix’s ad-supported tier has teething troubles, why ad buyers are hesitant to embrace DSPs, and a look at modern contextual advertising. Let’s get started.Navigating the ‘slippery slope’ of personal endorsements in podcast adsManuela: Over the past few years there have been multiple headlines spotlighting instances of social media influencers butting up against the Federal Trade Commission. This period of adjustment as new media incorporates modern advertising rules has matured to the point the FTC has a official page just for coaching influencers on advertisement disclosure. As MarketingBrew’s Alyssa Meyers pointed out this week: the FTC hasn’t similarly cracked down on podcast advertisements just yet, but it has come close. Listeners of The Download might remember a case in November when Google and iHeartRadio settled with the FTC out of court. The case concerned allegations that several iHeart on-air radio personalities were given ad copy with personal endorsements for a Pixel phone the hosts had not used. From Meyers’ article: “Though the FTC’s guidelines for endorsements and testimonials in advertising don’t mention podcasts, the agency proposed a change last May that would, if approved, add an example concerning a podcast host related to disclosing material connections.”Podcasting is no stranger to ad copy that flirts the line between advertisement and personal endorsement. Meyers opens her article asking if the reader has ever questioned if podcasters really made the meal kits they endorse, or if their mattress sponsor actually fixed their back problems. Hyperbolic, perhaps, but endorsements are a big factor in the appeal of host-read ads. David Plotz, CEO of City Cast told MarketingBrew he has experienced advertisers requiring ads to contain personal endorsements or, more worryingly from an FTC perspective, attempt to slip a personal endorsement into the ad copy.  Meyers spotlights two approaches that eliminate any FTC concerns: Lauren Lograsso and NPR. Lograsso prefers ad deals with required endorsements and the authenticity of having tried the product herself. Conversely, NPR has a blanket policy of zero personal endorsements, a byproduct of the company carrying over its radio journalism ethos into podcasting. The article then closes out with advice from Veritone One VP of podcasting Hilary Ross Shafer and Adopter Media CEO Glenn Rubenstein: onboarding calls between podcasters and advertisers are useful, if not vital, tools to establish goals and prevent miscommunication. While host-read remains the preferred method of podcast advertising, it’s worth remembering Sounds Profitable’s first study, After These Messages, found the gap between host-read and announcer-read was smaller than conventional wisdom might suggest. 81% of respondents trusted host-read ads, followed by 71% trusting announcer-read.While it’s certainly possible podcasting will get a headline or two on par with, say, Instagram influencers selling teas that claimed to cure cancer, the data shows there’s no need for such extremes. Podcast listeners, especially in comparison to other forms of media, are quite accepting, if not supportive of advertising. Netflix Ad-Supported Tier Experiences Teething TroublesShreya: Time for an update on a continuing story involving Netflix. Back in early November we covered the details of Netflix’s new Basic tier with advertisements, as well as the big brands buying space at a reported CPM between $60 and $80. Now Basic with Ads has been out a few months and experienced its first teething troubles. Danielle Long, writing for The Drum, reports the streamer has had to issue refunds to Australian advertisers after failing to meet projected audience numbers. From the article: “Media reports suggest Netflix’s Basic with Ads subscription tier, which launched in November, has underperformed by as much as 70% in the first three months of operation.”While Australia’s ad refunds are the most eye-opening headline, Basic with Ads is reportedly slower to start than expected on a global scale. From a US perspective, last week an Insider Intelligence piece from Sara Lebow digs into the question of why, in the face of a recession, consumers aren’t downgrading their Netflix memberships to Basic with Ads. In fact, as economic worries mount, CivicScience numbers show there has been a three percent decline in US citizens who only have one subscription video-on-demand service since January of 2022. From Insider Intelligence analyst Daniel Konstantinovic: “Not only have people shown they are willing to pay for entertainment through difficult economic times, but they’re actually adding more.”One bright spot for Basic with Ads is the recent rollout of Netflix’s password-sharing restrictions in certain markets, with plans to implement them in more places over time. While controversial on social media, kicking people off shared accounts will likely drive Basic with Ads subscriptions as people begin to sign up and see the ad-free experience they’ve grown accustomed to comes with the sticker shock of $16 a month.Audiences can be ad-averse and comfortable with paying to get away from ads. Even in podcasting, where we have seen audiences be particularly accepting of ads, there’s a booming market of premium subscriptions that frequently offer ad-free feeds. The question remains if consumers will value ad-free Netflix at the price point of three premium subscriptions on Apple Podcasts. Why podcast ad buyers are hesitant to spend through demand-side platforms Manuela: It’s no secret that programmatic has yet to be wholly adopted by podcast advertisers. This Valentine’s Day, Sara Guaglione of Digiday has published a piece specifically to investigate why the hesitancy still exists. From the article: “There are a variety of reasons for this: host-read ads are still king in the medium, not all podcast networks or shows have inventory available to buy programmatically, and buyers often feel the need to vet the content to ensure contextual alignment when targeting specific audience segments or category verticals across a number of podcast networks.”This commitment to host-read and lack of programmatic accessibility also leads to a shortage of inventory available to plug into an SSP. Podcasting is also light on SSPs, with few exceptions past AdsWizz and Triton Digital. As Marketecture founder Ari Paparo told Digiday for another piece, it’s not likely we’ll see a lot of new SSPs pop up anytime soon. Paparo’s quote from that article: “I think that, fundamentally, the SSP business is not very attractive … It’s not growing, and it’s very competitive as publishers really treat you like a commodity, they have like 10 or 20 of them implemented on every page.”It’s not all grim news, though.Guaglione reports some buyers Digiday spoke to are either in the testing phase or outright investing in programmatic podcast ads for the first time this year. She also cites a prediction from Insider Intelligence that programmatic’s 2% of total podcast ad spend in 2021 will grow to just under 10% by 2024. That said, there are still some outliers who take issue with programmatic as a concept. From the article: “One buyer — who did not feel comfortable speaking on the record to summarize agencies’ hesitancy to buy podcast ads programmatically — said there is a “sect of the podcast ecosystem that is anti-programmatic that does not exist in other mediums,” which they believe is due to being “burned” by issues with programmatic display ad buying.”It’s perfectly fine if buyers prefer host read. It’s a proven and sound strategy, but it’s also not a good look to trash alternatives that appeal to a larger buy-side. As has been said many times on this podcast: programmatic advertising is a tool, not a magic button. When used correctly, it can do amazing things. When implemented suboptimally, it can deliver suboptimal results. Shreya: Finally, it’s time for our semi-regular roundup of articles we’re calling Quick Hits. These are articles that didn’t quite make the cut for today’s episode, but are still worth including in your weekend reading.Before we get into the articles, we want to take a quick second to poin

On Air Fest is a yearly event that celebrates sound by way of the podcast and audio industries. It’s in its 7th year, and this year, there’s an added bonus to the three-day-long event: the Podcast Experience. Bryan Barletta speaks with On Air Fest founders Jemma Brown and Scott Newman about the festival, this year’s inaugural “experience,” their hopes for the future of events in the audio space, and more.Listen to learn about:  How On Air Fest has evolved How the podcast and audio space can grow by way of in-person and fan-focused events Why Bryan thinks we have to look outside of traditional audio spaces to grow the industry How to get tickets Sounds Profitable’s plans for SXSW Links: Bryan Barletta Arielle Nissenblatt Jemma Brown Scott Newman On Air Fest The Podcast Experience Events Credits: Hosted by Bryan Barletta and Arielle Nissenblatt Produced by Spooler Media Hosted on Art19 Recorded on SquadCast.fm  Edited by Reeece Carman and Ron Tendick

This week, on a very special Law and Order-flavored article, Tom Webster recounts his experience serving on a jury and what the defense’s tactics taught him about podcasting. Don’t look at the chicken.Credits: Written by Tom Webster Edited by Bryan Barletta Assembled with Spooler.fm Hosted by Art19 Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.

Manuela: This is The Download from Sounds Profitable, the most important news from this week and why it matters to people in the business of podcasting. I’m Manuela Bedoya. Shreya: And I’m Shreya Sharma.This week: Podcasting a ‘bright spot’ at SXM Media, Amplifi Media CEO counters ‘jarring headlines,’  new Black Podcast Listener Report from SXM and Mindshare, and the state of Google in podcasting.Let’s get started.Podcasting remains ‘a bright spot’ at SXM MediaManuela: ‘Tis the season of quarterly earnings calls. It seems like we get a batch of these every three months! SiriusXM has published their Q4 and full-year results for 2022. Overall the company saw a 4% year over year increase in revenue, hitting 9 billion dollars. The company shouted out its agreements with, as the official copy puts it, “podcast powerhouses” like Crooked Media, Freakonomics, and a 24/7 original comedy channel captained by Conan O’Brien’s Team Coco. Podcasting is on the mind at SXM. CEO Jennifer Witz spoke highly of the company’s podcasting arm during the call. To quote fhttps://d1io3yog0oux5.cloudfront.net/_a9fb3e04db36529ff47846b646f7e89e/siriusxm/db/2245/21302/file/SIRI+Q4+2022+Earnings+Release+vF.pdf“In a challenging ad market, podcasts continue to be a growth opportunity for us. This past quarter, we expanded our podcast offerings while doubling down on the shows that have proven most successful with five of the top 20 shows in Edison Research's top 50 podcast rankings, the most of any network.” Witz went on to say podcasting was a bright spot for the industry overall and SXM in particular, driving their 34% increase in off-platform business in 2022. We’ve said it before and will say it again: it’s a good day to hear good news in podcasting. Podcasting is doing fine; thank youShreya: Last week an https://rainnews.com/steve-goldstein-05132022-2/ was published on RainNews, built to assuage fears over recent doom-and-gloom media coverage. A quote from Goldstein’s opening: “If you are reading the headlines about podcasting, you might be a little nervous. There has been a lot of confusing and contradictory chatter about what the drop in new podcasts in 2022 means. Has the podcast bubble burst? Are podcasts on the way out? Not likely.”The piece puts to bed the air of uncertainty as recent reports show a decrease in active podcasts. Goldstein points to the marked increase in podcast production at the beginning of the pandemic, along with air fryer sales, used car sales, and views for cooking videos on YouTube. Now the https://www.youtube.com/watch?v=5Ay5GqJwHF8 era of podcasting is over. Companies can no longer invest with the philosophy of “if you build it, they will come.” Which leads to Goldstein’s conclusion. Quote: “Just like all media, the podcast space is dynamic, exciting and rapidly evolving. It’s full of possibility and wonder. We just need a little more rigor and a little less throwing spaghetti against the wall. The next generation of podcasts will likely have greater research, focus and muscle behind them. Companies that produce and promote fewer high-quality podcasts will be better positioned for optimal growth. So, let’s get past the jarring headlines.“SXM Media and Mindshare publish Black Podcast Listener Report 2.0Manuela: SXM Media is back with the second edition of their https://www.sxmmedia.com/insights/what-brands-need-to-know-to-reach-black-podcast-listeners-in-2023. The study is the result of over 2,500 online interviews with Black and/or African American adults in the United States during September of last year. According to SXM’s footnotes, the data was weighted for age, sex, census region of the US, and the Edison’s Infinite Dial 2022 podcasting listening statistics. Among the findings are some promising results for advertisers. From the SXM blog post: “The best way to win over Black podcast listeners is to run ads on shows that represent their voice, culture, and point of view. Black audiences who have listened to a podcast with a Black host in the last month are more likely to take action than those who’ve never listened to a podcast hosted by Black talent.”82% of respondents would consider a brand if they heard their ad on a podcast with a Black host, as well as 78% saying they would purchase said brand. The recap article ends by encouraging brands who set aside ad budget to target Black audiences during February for Black History month to continue that spend throughout the year. From the article: “Like so much of the population, Black audiences are listening to podcasts—and, as you’ve learned, they’re leaned-in and here for ads that support the shows they love.”  The State of Google and PodcastingShreya: Continuing the trend of earnings calls, let’s talk Google. It was a mixed bag in this year’s Q4 earnings report. Parent company Alphabet reported a 0.7 billion increase year over year in total revenue for Q4 2022. According to https://www.insiderintelligence.com/content/google-misses-mark-q4-setting-up-challenging-2023-digital-advertising?utm_id=eDaily+2.3.2023, this 1% increase falls short of the anticipated revenue by nearly half a billion dollars. https://www.adexchanger.com/online-advertising/alphabets-q4-ad-spend-pullback-got-worse-with-more-hurt-to-come/?oly_enc_id=7865D1013734B0R, breaks down the more Google-relevant numbers: “YouTube advertising was down from $8.6 billion to $7.9 billion, while the Google Display Network decreased by almost $1 billion YoY. Net income (which is to say, profit) dropped even more steeply, from $20.6 billion in Q4 2021 to $13.6 billion.” Alongside the earnings, there has been discussion of Google and YouTube’s investment into podcasting as the search engine giant retools podcast searching. Since 2018 Google has displayed individual podcast episodes and a play button whenever searching for a specific podcast. https://podnews.net/update/google-podcast-disappearsthe feature was removed. James Cridland’s coverage in Podnews at the time also noted the Google Podcasts app had not received any feature updates in eighteen months.Now even the carousel of Google Podcast links in searches for podcasts is going away, but will be replaced with a new feature called What to Podcast. Ihttps://www.youtube.com/shorts/j0IFUwhzB4g, the new feature appears to add a new section to the top of search results that shows podcasts relating to the search term. While not as easy as a play button and episode list, it does serve as a funnel to direct foot traffic into podcast apps. Meanwhile, earlier this month, YouTube launched ad monetization for YouTube Shorts. Previously, the program had operated on a TikTok-esque fund divvied between creators who met certain engagement goals. Now any account with over 1,000 subscribers and 10 million Shorts views in the previous 90 days can earn ad revenue at a split of 45% to them and 55% to Google. https://digiday.com/marketing/in-the-platforms-arms-race-for-creators-youtube-shorts-splashes-the-cash/ notes this is not as attractive a revenue split as similar programs at Facebook and TikTok, but the YouTube Shorts equivalent has a lower barrier to entry for newer accounts. In this week’s earnings call, Google Chief Business Officer Philipp Schindler spoke on CTV, YouTube being at the top of Nielsen’s measurement of US streaming watch time, and content integration. Tuesday’s issue of Ben Thompson’s Stratechery points out it’s clear YouTube is dreaming of becoming a media streaming aggregate with the implementation of Primetime Channels on top of existing offerings like YouTube Music and NFL Sunday Ticket. From Stratechery: “The idealized future is one where YouTube is the front-door of all video period, whether that be streaming, linear, or user-generated.” With all their investments in YouTube and gentle downgrade of podcast presentation in the search engine, it feels like Google is becoming gently insistent podcasting’s round peg will be expected to conform to the square hole of their media platform. Podcasting likely isn’t going to come to YouTube as we know it, podcasters are simply incentivized to become YouTubers.Shreya: Finally, it’s time for our semi-regular roundup of articles we’re calling Quick Hits. These are articles that didn’t quite make the cut for today’s episode, but are still worth including in your weekend reading. This week: https://digiday.com/media/media-briefing-the-case-for-and-against-monthly-and-annual-subscriptions-in-the-battle-for-retention/ by Kayleigh Barber for Digiday. An excellent breakdown of the current debate between annual vs. monthly subscriptions, how they affect churn, and detailed pros and cons for both options. https://www.edisonresearch.com/2-1-2023-weekly-insights-podcast-reach-among-13-34s-in-the-u-s/ Of all people aged 13-34 in the US, one third listen to podcasts every day. Manuela: And that was The Download, brought to you by

It’s 2023! Sounds Profitable has a whole new look, some new team members, and we’re looking ahead towards a year packed with value for the audio and podcasting industries.Links: Bryan Barletta Arielle Nissenblatt Manuela Bedoya The Download Sounds Profitable: Narrated Articles SquadCast Credits: Hosted by Bryan Barletta and Arielle Nissenblatt Sounds Profitable Theme written by Tim Cameron Edited by Reece Carman and Ron Tendick Assembled by Spooler Media Hosted on Omny Studios Additional help from Gavin Gaddis

This week Bryan Barletta discusses Spotify's streaming ad insertion, what it means for their future, and how it could better the podcast industry overall. Credits: Written by Bryan Barletta Edited by Tom Webster Produced with Spooler.fm Hosted with ART19 Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.

This week: Podcast Ad Spend Isn’t Slowing Down, IAB CEO Airs Beef with Apple, Several podcast companies are hiring, Brands Seek Alternatives Amidst Digital Clutter, and an updated edition of The Podscape is live.Open Podcasting PositionsManuela:In light of recent layoffs in the podcasting space, we would like to take a moment at the top of the show to highlight some companies that currently have positions seeking applicants. JAR Audio is hiring a full-time Audience Growth Specialist Wondery is currently hiring seventeen full-time positions, 15 in the US and two in their UK office in London.And Magellan AI is currently hiring for the positions of Account Executive, Measurement Success Manager, and Sales Development Representative.Podcast ad buyers have yet to see a slowdown Shreya: Yesterday, Digiday’s Sara Guaglione published a piece detailing how solidly podcasting has handled the much-debated recession. But to get to the good, we gotta hit the bad. As Guaglione points out, ad spending overall has taken a hit recently. Last week Insider Intelligence writer Arielle Feger reported ad spending in the US fell 12.1% in December, making it the sixth consecutive month ad spend has gone down. Insider Intelligence has cut five billion from their 2023 US digital ad spending forecast, bringing it down to 278.59 billion. Now for the good news; Guaglione is finding that decline hasn’t sunk into podcasting. Four buyers spoke with Digiday and report their client’s budgets aren’t getting cut, and they see an increase in podcast ad spend. Employees of Horizon Media, Ocean Media, and CMI Media Group report increased spending on podcast ads, often from clients who are backing down on ad spend in other forms of media. The piece reconciles increase in ad spend with recent industry layoffs, cancellations, and cost-cutting with a proposal from Elli Dimitroulakos, Acast’s global head of ad innovation: production houses are shifting away from multi-million dollar minimum guarantee signings. As headline-grabbing pandemic deals begin to end, small-to-midsize podcast inventory rises to take its place with inviting prices. “The buyers Digiday spoke with said there is plenty of ad inventory available despite the recent reports that investment in new and existing shows may be decreasing.” It’s a good day to hear good news in podcasting. IAB CEO Airs Beef with Apple, Lands MeetingManuela: Things have gotten interesting with the IAB and Apple. Last week, during the IAB Annual Leadership Meeting, CEO David Cohen took to the stage with a prepared speech titled “It Starts Here.” A speech so vitriolic it prompted a joint response from the ANA and 4A’s to criticize its tone and “polarizing political rhetoric.”The first segment dedicates multiple paragraphs to proposing the FTC, members of the Biden administration, and politically-opposed members of Congress are funneling ‘dark money’ into a common goal of destroying the advertising industry under the guise of controlling ‘Big Tech.’ Cohen then transitions to Apple. From the speech: “After years of failing to build a significant market for ads in Apple Music, in Apple TV, and on the iPhone, Apple has decided the next best thing is to stop anyone else from making money in advertising. That’s why they are the Poison Apple.”The crux of Cohen’s issues stem from App Tracking Transparency and the billions of dollars of ad revenue it has destroyed since Apple deployed the feature. Attention is given to both the damage ATT has done to third-party advertisers and the fact first-party iOS apps aren’t given the same treatment. From Cohen’s quote given to AdAge’s Garett Sloane:  “So, we want to call it out for the hypocrisy that it is, and we want to invite them back to the table.”In his postmortem interview with Ryan Barwick, Cohen announced that since the Poisoned Apple speech, Apple has reached out to the IAB to schedule a meeting in February. Whether the meeting will be productive or not remains to be seen, as it was spawned by a speech with digs like, and I quote: “Apple will try to smother the advertising industry just like they did to the recorded music industry. We can’t sit back and watch that happen. “ The fact a meeting has been booked is a step in the right direction, regardless of how it was achieved. Whether or not Apple will have any motivation to re-engage with IAB podcasting groups remains to be seen. Brands Seek Alternatives Amidst Digital ClutterShreya: Last Thursday Julian Cannon, writing for Digiday, published a piece covering recent examples of companies recontextualizing print advertisements. “Last month, General Electric took over The New York Times’ print advertising for a day throughout the news, business and arts sections of the paper amounting to 22 full-page color ads as well as five partial pages.”Not only was this an impressive buyout, it was the first of its kind for the Times. It’s also the latest in a series of big plays as marketers embrace out-of-home advertising and the freedom from on-screen clutter that can come with digital. Senior partner and co-head of marketing and sales at Prophet Mat Zucker explains the appeal of a full-page newspaper ad in 2023:“Full-page ads command attention and gravitas for the message. There’s no need to fill the space but the statement says we mean what we’re saying and it owns the space preventing clutter from other marketers or messages which could cloud the message or distract from it.”Every ad in podcasting is full-page, from the perspective these marketers are aiming for. And many podcasts explore full or single-episode sponsorship opportunities. What General Electric sought in newspaper, podcasting can offer them, along with the fact podcasting has a bit more sex appeal than print. Podscape 2.0 is here.Manuela: Before we get into Quick Hits, we have a story to quickly revisit. After some wonderful feedback from the industry the second edition of The 2023 Podscape, a collaboration between Magellan AI and Sounds Profitable, is now available for download. The Podscape, a sizable infographic, aims to give a birds-eye view of podcasting that takes inventory of companies, agencies, services, and anything else that could be classified as podcasting. The current edition is available for free download now on Magellans’ Podscape page. Shreya: Finally, it’s time for our semi-regular roundup of articles we’re calling Quick Hits. These are articles that didn’t quite make the cut for today’s episode, but are still worth including in your weekend reading. This week: Marketers Predict Programmatic Advertising Spend in Podcasts to Triple by 2027, Acast Study Finds, a press release provided via Podnews. While the future might be interesting, what matters now is we have a new report from a company that prioritizes programmatic in podcasting so it can be valuable for those considering its possibilities.Understanding podcasts in East and South East Asia by Guang Jin YEO for Podnews. The first publication in a multi-month series covering the region’s podcasting and its opportunities. Country overviews for Japan and South Korea are currently available. Nielsen to Shop Edison Research Data by the Podcast Business Journal. A brief explanation of the announcement that Nielsen will start marketing Share of Ear and Podcast Metrics to advertising agencies. Two notable contenders in the space working together to lend the industry further credibility. About three-quarters of people who plan to watch the Super Bowl said they’re excited for the ads, research says by Alyssa Meyers. It’s early February, which means we’re bound by advertising-adjacent tradition to share a story about how much audiences love Super

This week Bryan brings you a feed drop from Marketecture.tv, featuring his interview with Ari Paparo. This episode marks the beginning of a partnership between Marketecture and Sounds Profitable! Look forward to interviews conducted by Bryan himself in future on official Marketecture channels, as well as Sounds Profitable DeepDives on the Sounds Profitable YouTube channel. From the original description: In this conversation with Ari Paparo, Bryan Barletta provides an overview of the audio advertising industry and its enabling technologies. After providing a level set on the size and maturity of the podcast ad vertical, he describes the mechanics of audio ad buying, serving, and measurement. Bryan also discusses the market dynamics in the podcast space, led by enterprise players like Spotify, IHeartMedia, and Triton Digital which operate their own ad tech platforms.

This week Tom Webster demonstrates how even seemingly small pieces of data can have big implications if given the right context and a story. Credits: Written by Tom Webster Edited by Bryan Barletta Produced with Spooler.fm Hosted with Omny Studio Sounds Profitable theme written by Tim Cameron Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.See omnystudio.com/listener for privacy information.