The enduring significance of podcasts in today's media landscape

If there was ever a doubt that podcasts matter, last week's developments in South Africa have proven that they do. Lately, some podcasters have influenced national debates that resulted in legal challenges. There’s even a feeling that there’s a need to regulate podcasts. Is this an ideal approach? A closer look of the global state of podcasts shows that they are unstoppable and it's too late to regulate. Here’s why…

Podcasting has been around for over a decade, but it’s in the last few years that it’s gained massive traction. According to recent data from GWI, over 60% of internet users worldwide now listen to podcasts at least once a month - up from just 45% in 2020. Podcasting is now filled with talking heads who discuss all sorts of topics.

Business, particularly advertising, is one of the reasons why podcasts will continue to flourish. Here’s what business is getting from podcasts. Podcasts often attract specific demographics based on topics or interests. Whether you’re targeting business professionals, fitness enthusiasts, or parents, there’s a podcast for almost every niche. This allows advertisers to be highly strategic with their messaging, reaching exactly the right audience at the right time.

Unlike display ads that often go unnoticed or skipped, podcast ads benefit from an engaged, captive audience. Because listeners tend to tune in during activities like commuting or exercising, they’re more likely to pay attention to the content, including ads. Research from Acast shows that podcast ads have a much higher recall rate than traditional media, meaning consumers remember the products and services being advertised.

Podcasts have an intimate, conversational tone that fosters trust. Listeners often feel a personal connection to hosts, and when those hosts read or endorse an ad, it carries weight. This authenticity is a powerful asset in advertising. In fact, 57% of podcast listeners report they’re more likely to make a purchase after hearing a product advertised in a podcast, according to Acast.The rise of the podcasting platforms is another indicator that podcasts are here to stay.

Spotify, as an example, has become a major player in the podcasting landscape, significantly contributing to the format's rise in popularity. The platform has invested heavily in podcasts, both in terms of content and technology, fostering a thriving ecosystem for creators and listeners. Spotify's push into video podcasts and its support for creators through programs like the Spotify Partner Program have further fueled the growth of the medium. The platform has also invested in original and exclusive podcasts, attracting both creators and listeners.

Spotify's "Wrapped for Creators" feature provides valuable insights into podcast performance, helping creators understand their audience and refine their content, according to Spotify's blog. Spotify's Creator Milestone Award recognises podcasts that reach significant streaming milestones, setting a new standard for achievement in the industry, according to Spotify's blog. Spotify has embraced video podcasts, recognising the growing demand for this format.

The platform's initial launch of video podcasts in mid-2020 and subsequent rollout in 2021 saw a surge in popularity, fueled by the Covid-19 pandemic and the desire for digital connection. Spotify has seen a significant increase in video podcast consumption, with creators earning more through the Spotify Partner Program. AI-powered tools and technologies have made it easier and more accessible for creators to produce high-quality video podcasts, even with limited resources. Spotify's Partner Program provides creators with tools and resources to increase revenue and reach a wider audience.

The program has helped numerous creators achieve significant monthly revenue, with some even earning six-figure incomes, according to Spotify's blog. Spotify's flexible earning options and global reach empower creators to build sustainable businesses.

Impact on Listeners and the Podcast Industry:

Spotify's platform has made podcasts more accessible to a global audience, with over a billion people having listened to a podcast on Spotify since 2019, according to Spotify's blog.

Podcasts on Spotify have become a daily habit for many, with a large percentage of streams occurring during the week and on mobile devices. The rise of podcasts on Spotify has created new opportunities for advertisers to reach engaged audiences. It seems podcasts will continue to rise with associated speech challenges. To address this problem, it may be necessary to equip podcasters with better skills as regulation may not be enough.

Wesley Diphoko is a Technology Analyst and Editor-In-Chief of FastCompany (SA) magazine.

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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