Sounds Profitable

Google has a potentially huge opportunity to grow the podcast industry — both for publishers and for listeners (and even for advertisers) — by way of YouTube Music. The past few weeks have brought more and more attention to this possibility by way of Kai Chuk’s announcement at Hot Pod Summit at On Air Fest and a recent press release shared on Podnews. In this episode, Bryan Barletta and Arielle Nissenblatt discuss the opportunity at hand, what we would like to see, what we will likely see (realistically), and what the future looks like if the opportunity is seized.
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This week Bryan addresses the myth that podcasting has a unique measurement problem, and how the industry as a whole can move forward to address it.

Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.

The Download is brought to you by Magellan AI. Track the trends in spend, ad load, podcasts on YouTube, and more with Magellan AI's advertising benchmark report for Q4, available now.The stories covered this week are:

Quick Hits: The JAR Audio Pilot Competition for Emerging Women Podcasters is now accepting applications. The winning idea will be produced as a pilot episode with JAR audio collaborating with the creator. The deadline for submissions is May 1st. Sessions from Veritonic’s Audio Intelligence Summit are now available on Veritonic’s website. For those who missed out, or are interested in reviewing what they saw in person, the seven sessions are now live, including the panel on attribution and brand lift that includes our own Bryan Barletta. What Are the 3 S’s of Programmatic Podcast Advertising? By Mattia Verzella on AdMonsters. Spreaker’s Head of Business Development breaks down the rise of ad trading in podcasting, the challenges faced by both publishers and advertisers, and details how the three S’s can solve for them. For the episode's full transcript, please visit SoundsProfitable.com/Podcast

Does the medium move the message? Spoiler alert - yes. This week Tom Webster previews the next research project from Sounds Profitable.

Sounds Profitable theme written by Tim Cameron

Gavin: 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 Gavin Gaddis, in for Manuela Bedoya. Shreya: And I’m Shreya Sharma.Gavin: The Download is brought to you by Magellan AI. Track the trends in spend, ad load, podcasts on YouTube, and more with Magellan AI's advertising benchmark report for Q4, available now. You can find a link in the description or visit Magellan dot AI.Shreya: This week: Spotify Stream On Announces New Features, RSS.com and Spreaker make transcripts more accessible, Marketers adapt to serve niche communities, and The Infinite Dial turns 25. Let’s get started. Spotify live stream Gavin: Yesterday Spotify hosted their annual Stream On live event from LA. Throughout the 90 minute presentation a series of guest speakers, ranging from Spotify executives to the Jonas Brothers, debuted new features from Spotify and the company’s goals in the near future. Let’s look at the ones relevant to podcasting:Starting yesterday the Anchor brand has been retired. The hosting service and other podcasting features will be brought under the name Spotify for Podcasters. In addition to the new coat of paint for Anchor, several features originally only available to podcasts hosted on Anchor have been made platform-agnostic.  Chief among these features is the ability to upload video podcasts to Spotify, a particular pain point for video podcasters outside the Spotify umbrella. In addition to video uploads, users will have access to net-new features like Q&A posts and polls that will be visible on the podcast’s page in Spotify. The Spotify for Podcasters dashboard will also feature more advanced analytics. As one slide of the presentation announced: “Spotify is open for business.” 
Speaking of business, during the segment focusing on the Spotify Audience Network, Chief Business Officer Alex Norstrom announced the newest publisher to join SPAN is none other than podcasting giant NPR.In the world of monetization, Spotify podcasters are getting a sizeable upgrade in the form of a Patreon partnership. Now podcast listeners will be able to listen to premium content hosted on Patreon from within Spotify itself. With this announcement, Spotify now has a direct answer to Apple’s paid podcast subscription service.This year’s Stream On was a promising one, with a healthy focus on the podcasting industry overall. This renewed focus on upgrading the platform, adding new features, and making older features more accessible to podcasters everywhere is a promising one. Spotify seems to be interested in growing with podcasting instead of growing independently. We love to see it. RSS.com and Spreaker make transcription freeShreya: To continue the trend of features that benefit everyone in podcasting we have two big transcription announcements. First: this Monday https://podnews.net/press-release/rss-com-free-transcripts?utm_source=podnews.net&utm_medium=email&utm_campaign=podnews.net:2023-03-06. When generated, these transcripts will be posted automatically to the show’s episode page on RSS.com, as well as pushed the show’s RSS feed. This will allow the transcript to be displayed in podcast listening apps that support Podcasting 2.0 tags. According to this Monday’s issue of Podnews, the list of apps that actively support transcripts through this method includes Podverse, Podbean, and Podcast Addict. At launch the automatic transcripts support thirteen languages: English, Spanish, Arabic, Catalan, Dutch, French, German, Indonesian, Italian, Japanese, Polish, Portuguese and Turkish.  In the official press release, RSS.com co-founder Ben Richardson said there were several features the company considered essential to the tool for it to be ready, including multiple languages and ease of use for the podcaster. From the press release: 
“We encourage all types of podcast player apps to facilitate the use of captions and transcripts our podcasters can provide in order to open up even more of podcasting’s potential.” 
And for the second part of this Monday transcription tale: the folks at Spreaker launched http://freepodcastranscription.com, a free tool available to anyone regardless of affiliation with Spreaker. The website touts a high level of privacy and security due to everything being run locally in the user’s browser. From the site’s copy:
“We don't send the mp3 file to a server. All the processing happens on your device.” 
Since that processing is kept in-browser instead of farmed out to an expensive server network, the burden of effort and cost is shifted to the user, allowing a lightweight, free option for podcast transcription. Users pick from one of sixty language options, select the file needing transcription, and run the process. After some time, dictated by the power of the computer, a .SRT file is generated for download.  
The easier it is for podcasters to generate transcripts, the more pressure there will be for podcast apps to fully implement them. Not only does the popularization of transcription make podcasting more accessible to a wider audience, it increases the search engine optimization far beyond what can be written in a given episode title or description. More people can enjoy podcasts, and more people will be able to find them. A win-win scenario. 
Marketers adapt to serve niche communities as culture fragments. 
Gavin: This week an eighth-part article series on social fragmentation in the internet era kicked off on Digiday. https://digiday.com/marketing/marketers-adapt-to-serve-niche-communities-as-culture-fragments-strays-from-universal-water-cooler-moments/ focuses on the death of the classic “water cooler moment.” From the article: 
“Today, we not only don’t have a watercooler — as the return to the office hasn’t been a return to pre-pandemic normal — but we have fewer mass cultural moments where everyone is paying attention to one thing. In recent years, the proliferation of content online has made the experience of the internet more individualized, according to agency execs, allowing people to focus on specific niches that they find interesting rather than tune into whatever they’re supposed to like because everyone else says they should.” 
A natural reaction to this fragmentation is to focus down on appropriate niche groups and meet the individuals at their own individualized online experiences. Unfortunately this also comes with the task of convincing marketers to buy in, as they tend to want to stretch their budgets as wide as possible. Some of this convincing comes in the form of sobering conversations explaining that even the largest brands don’t have the money to target every audience at once.
Fragmentation has lead to more digital boots-on-the-ground marketing, such as Cristina Lawrence, EVP of consumer and content experience at Razorfish, aiding a CGP company in establishing a viral TikTok account. Primarily by being flexible and producing content quickly, the company could pursue moment-to-moment trends as they developed and meet users where they naturally were going.
Much like when Apple Tracking Transparency turned the advertising world on its head, save for podcasting, our industry is uniquely positioned to serve targeted communities. Podcasts, by their very nature, create their own niche groups. If properly maintained and surveyed, a podcast community is the perfect place for niche targeting.    Edison Research Publishes 25th Anniversary Edition of The Infinite Dial 
Shreya: For our final story of the week, why not end on some more good news? A flashy 25th anniversary edition of Edison Research’s report The Infinite Dial dropped last Thursday. Here’s some highlights from the 73 page document to take you into the weekend:
Monthly podcast listening for the total US population 12 and up dipped last year, going from 41% in 2021 to 38% in 2022. Listenership has risen once more, with 2023 numbers sitting at 42% of the population, an estimated 120 million listeners. Weekly podcast listening took a similar dip in 2022, slipping from 28% of the population to 26%. This year it has climbed back up from the slump to 31%, or an estimated 89 million podcast listeners in the US alone. From the observations slide: 
“Data appears to reflect ‘post-pandemic’: on pattern from previous years.”
In essence, it appears the number fluctuations caused by the COVID-19 pandemic severely changing daily routines have calmed. Now the industry is back to the familiar, steady growth seen in previous years.
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://www.marketingbrew.com/stories/2023/03/02/advertisers-can-use-their-own-first-party-data-to-target-podcast-ad-campaigns-but-are-they By Alyssa Meyers. A piece interrogating how podcasting can implement first-party data in ad campaigns, as well as interrogating why certain companies prefer or avoid it. Spoiler alert: first-party, like programmatic and any other tool, has its uses and can work well when used appropriately. 

This week we bring you a feed drop from Insider Interviews, in which E.B. Moss interviews Linda Bethea. The original show notes follow:
Linda Bethea, Head of Marketing for Danone North America - a top 15 Food and Beverage brand and the country's largest B corp - gives Insider Interviews host, E.B. Moss, the insider's scoop on marketing 20 different beloved CPG brands, and staying true to a corporate mission of sustainability. Hear how she developed her leadership skills during stints with PepsiCo, Frito-Lay and Diageo, and is now "delighting" consumers with everything from International Delight partnerships with the iconic show "Friends" to the hit Super Bowl commercial for Oikos with Deion Sanders and family.
Linda and E.B. discuss:• Linda's path from soda to spirits to spirited field work that taught her how to negotiate and earned the nickname of The Velvet Hammer• Her definition of brand purpose and how proper marketing of it impacts consumer choice and company values• The growing demand for plant-based foods today• How Danone is rescuing fruit and repurposing bottles into shoes and what E.B. eats as an "ova-lacto-pesce-vegetarian"! (And a lot more about plant-food trends, like Danone's new campaign for Silk with a "faux" milk moustache on stars!Linda Bethea is smart and inspiring and mission-driven. Don't miss this conversation with a conscientious consumer marketer and leader.

In preparation for Podcast Movement Evolutions and South by Southwest, Bryan Barletta sits down with Tom Webster to discuss research, presentations, and his new weekly video series Data Decoded.Credits:

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.Manuela: The Download is brought to you by Magellan AI. Track the trends in spend, ad load, podcasts on YouTube, and more with Magellan AI's advertising benchmark report for Q4, available now. You can find a link in the description or visit Magellan dot AI.Shreya: This week: Podcasts are coming to YouTube Music, Digiday breaks down the Google antitrust case, Podnews publishes a deep dive on podcasting in Japan, and how marketers are looking at Q2. Let’s get started.Podcasts are coming to YouTube Music
Manuela: Since the release of the YouTube Podcasts webpage last year, there has been little in the way of concrete feature announcements from YouTube, leaving some skeptical of Google’s commitment. After all, podcasting has been burned by companies veering away from podcast support at the 11th hour. Last Thursday, during the Hot Pod Summit at On Air Fest, YouTube Podcast Lead Kai Chuck took to announce YouTube is releasing a beta version of podcasting functionality for YouTube accounts, as well as adding podcasts to YouTube Music in the near future. https://www.hollywoodreporter.com/business/digital/youtube-podcasts-1235332624/: “The message that I would hope folks are taking away is YouTube, at large, independent of YouTube Music, is looking to better support podcasters and [recognizes] that podcasting is generally an audio-first medium.” Once implemented, YouTube Music listeners will likely have a comparable podcast listening experience to current offerings with Spotify and Apple. As reported on the https://blog.youtube/news-and-events/youtube-music-premium-80-million-lyor-cohen/ in August, YouTube Music has a subscriber base of around 80 million users split across YouTube Music and YouTube Premium. Not bad, but it pales in comparison to YouTube’s over two billion users. According to Chuck, there are intentions to bridge  the gap between the platforms. https://newsletters.feedbinusercontent.com/60b/60b0be3184899cafee144c595c4fee42eb420187.html: “I don’t expect podcasts to only live on YouTube Music, that’s the only way that people consume podcasts on YouTube,” Chuk said. “We expect there to be kind of a back and forth between the two.”Shapiro then says Google product lead for podcasting Steve McLendon gave an explanation of how the feature would ultimately work, describing seamlessly continuing a podcast episode that had been started on a desktop computer watching YouTube to an audio feed while driving home from work. While not directly related to podcasting, another promising audio feature was announced for YouTube last week: https://variety.com/2023/digital/news/youtube-multilanguage-audio-tracks-mrbeast-supercharges-videos-1235533196/. Currently in beta and piloted by popular content creators like Jimmy “MrBeast” Donaldson, the feature will allow creators to upload alternate audio tracks to dub new and existing videos in different languages. If properly supported and implemented, this could have interesting implementations for podcasting in future.In the https://soundsprofitable.com/guide-and-article/how-google-can-earn-our-trust/, Bryan Barletta detailed several ways Google could win back trust from skeptical podcasters and show they’re committed to integrating with the industry. One way mentioned was a commitment to RSS ingestion and integration. While a step in the right direction, Chuck’s announcement didn’t completely deliver this. A quote from Chan’s presentation: “Definitely support for RSS is something we are looking at. I would say, probably initially, we will leverage RSS to make it easier for podcasters to bring shows to YouTube. In terms of future plans, things like that, we’re sort of exploring what should our goal be.” So podcasts are coming to YouTube. Kind of. As Chuck said, the current vision for RSS integration is less integration and more an automatic import to bring the file into YouTube’s ecosystem. Promising steps are being made towards YouTube integrating into podcasting, instead of YouTube turning podcasters into YouTubers who occasionally upload audio elsewhere, but we’re not out of the woods yet. 
WTF is going on with the Google antitrust case? Shreya: Back in late January the Department of Justice filed a lawsuit against Google, alleging the search engine giant had created a monopoly in the ad tech market as well. The 155 page lawsuit argues Google has used a combination of ad tech tools like their ad exchange and publisher ad server to corner the market on programmatic ads. https://digiday.com/marketing/wtf-is-the-justice-departments-ad-tech-antitrust-case-against-google/?utm_medium=email&utm_campaign=digidaydis&utm_source=daily&utm_content=230227 collecting together the first three installments of a series of videos explaining the DoJ’s lawsuit, as well as the basic fundamentals of ad tech needed to understand  the situation. In general, the crux of the lawsuit centers around Google having a DSP in the form of Display & Video 360, an ad exchange platform in AdX, and a publisher ad server in Google Ad Manager. A tech stack that, if leveraged a certain way, would give preferential treatment to Google’s interests. A quote from the DoJ lawsuit: “By allowing only its own publisher ad server effective access to important, unique Google Ads’ demand, Google could force publishers to adopt and remain on its publisher ad server; other ad servers could not compete to offer a similar product.” The situation is further exacerbated by Google’s sheer size in the adtech industry. According to the lawsuit’s allegations, Google’s market share for ad servers jumped from 60% in 2008 to 90% in 2015. The DoJ cites a 2016 customer presentation in which Google stressed this 90% market share, describing their publisher ad server as the quote-unquote “defacto” choice. Even now, as alleged by the lawsuit, header bidding can’t escape Google’s first-look clauses. From the lawsuit: “Critically, through dynamic allocation, Google’s ad exchange always received this “lastlook” advantage, essentially a right to buy any impression as long as it had at least one advertiser willing to match the competing bid price from the header bidding auction.”  Podcasting as an industry has many paths in front of it right now. If we choose to go down a handful of current options available, we might find ourselves in the same situation Digital found themselves in with Google. Let’s hope podcasting doesn’t get to a point where even header bidding can’t break free of one company’s control. It has been said before on The Download and it will be said again: independent third parties are vital for a healthy industry. 
Japan: A Podcasting Deep DiveManuela: The first in a series of https://podnews.net/article/podcast-deep-dive-japan was published last week on Podnews. A sequel to January’s https://podnews.net/article/podcast-in-asia-japan, this deep dive examines the driving factors behind an industry-defining podcast (such as Serial), explores Japan’s existing podcast industry, and explores what could be a podcast category driver in Japan to the point of reaching a similar impact to Serial. It’s an uphill battle in Japan, for sure. A snapshot of podcast listener statistics out of the internet population in several countries shows podcasting’s weekly reach is just four percent of the total population in a country with an 83% internet-connected population. For comparison, the same graph’s data for the US shows 26% weekly reach to the population.Some significant barriers to entry do stand in the way of a thriving Japanese podcast industry. Popular commercial radio syndication apps like Radiko undercut the motivation of radio to repackage segments as podcasts, Japan has far stricter content copyright laws than the US, and most how-to guides built for educating new podcast listeners are only available in English. From the article: “But is it all doom and gloom? Not exactly, TBS - Tokyo Broadcasting Station, the first radio broadcaster in Japan is planning to release a large number of new original podcast programs on all the mainstream podcast outlets - which means that they see value outside of Radiko. Covid also encouraged a surge of creators globally, including Japan which means more people are willing to tackle the complicated copyright laws and more people are willing to explain them to creators.” Global podcasting is growing, and as this deep dive shows, some markets remain full of untapped potential with only a few speed bumps in the way of mainstream adoption.
Mixed outlook for Q2, marketers hold hope for second half
Shreya: This week Digiday’shttps://digiday.com/marketing/marketing-briefing-the-outlook-for-q2-is-mixed-but-marketers-hopes-grow-for-a-better-2nd-half/?utm_medium=email&utm_campaign=digidaydis&utm_source=daily&utm_content=230228

Writing for Sounds Profitable recently, Bryan Barletta posited the idea that Spotify has a big opportunity to use their streaming ad insertion technology to grow the industry. In this episode, Arielle Nissenblatt speaks with Bryan and Tom Webster about this opportunity, what it means for the larger industry, and how this all fits into the current zeitgeist around the future of audio (i.e. there have been some doom-and-gloom-focused articles popping up). 
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Every podcaster thinks they know what their audience likes. This week Tom Webster shares strategies to actually get that audience talking and directly telling you what they like. Credits:

Sounds Profitable: Narrated Articles is a production of Sounds Profitable. For more information, visit soundsprofitable.com.