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True Crime Addicts have been a fan of the podcast for a long time. The most featured rankings feature horrific delights such as pathological, small town murder, bone volleyball. But for producers, platforms and advertisers, the genre has brought about a unique plot twist.
The podcast became the new front of the streaming war early in the decade after distribution platforms such as Spotify actively pushed into the previous niche industry. However, after the Covid-19 uplift, the amount of new material wilted and advertisers proved worship. The Swedish music streamer won a hit of 40 million euros in amortization of podcast assets and termination of contracts in the second quarter of 2023.
The podcast is currently in its second season. Newcomers are taking part. In February, Fox acquired Redsheet Venture, a right-wing podcast company. Business Insider reports that streaming giant Netflix is pondering its segue into the world of audio. I understand the temptation. Listener numbers are still increasing. According to marketing consulting Backlinko, about 550mn was adjusted last year, with an additional 100mns available for participation by 2027.
This time there are two things different. The video gave the podcast format an arm shot. By the end of last year, 250mn people had watched the video podcast on Spotify. According to Rajar’s audience data, around 13% of UK listeners watch podcasts every week.
Meanwhile, the support infrastructure has evolved. Platforms like Patreon, Acast, and Subscribestar drive monetization through subscriptions, live events and products.
Still, it’s difficult to induce advertising spending. Some shows will captivate neat, accurately targeted demographics. Other audiences are more indeterminate. Advertisement for one UK True Crime Show Span Workflow Software, Online Therapist, Rice.
Listeners may also be less accepting of audio ads. Unlike web ads, there are no links to click. Podcast consumers are easily distracted. According to OFCOM, in the UK, mops and cloth are shaved to fit the podcast. This helps explain why the total ads are spent on $5 billion. This is just what Coca-Cola spends on all media.
Another problem with podcasting is the low entry barrier. In other words, there is a thin scattered scattered throughout. The average cost of advertisers reaching 1,000 listeners (CPMs) is between $15-30 for pre-recorded ads for up to one minute. Those who the podcast hosts read have earned another $10, says Acast. Some blockbusters – Logan is one – gobble most of the advertising pie.
Since 2020, production has been slowing down globally. Last year was not the fifth of a million new podcasts. Of course, novelties aren’t everything. Booking the UK’s top 10 (starting with Logan’s show) is the archer, the archer of Radio 4, decades ago. At least for now, there are no ads for UK listeners.
louise.lucas@ft.com
