06 Extract from the Prof G pod on podcasting (from the Dan Ariely episode 1 Feb '24)

Stakeholder Podcasting

A talk discussing key aspects of the podcasting industry and medium. It covers the extreme income inequality where the top podcasts take most revenue, the importance of Joe Rogan in growing the industry, the peak and recent slowdown in new podcast launches, the still fast growth and high advertising rates for top podcasts, and reasons why podcast ads outperform other digital ads including the intimate listener relationship. Action items involve researching the podcast advertising market potential and targeting podcast sponsorships.
Extreme Inequality in Podcast Monetization.
A few top podcasts take nearly all revenue and profits. Podcasting is likely not self-sustaining outside the top 1000 shows. The advertising market concentrates heavily among the top 500 podcasts.
Joe Rogan's Pivotal Impact.
Joe Rogan has been crucial in driving podcasting into the mainstream. His show defines key aspects of the medium and has fueled tremendous industry growth.
Podcasting Growth Peaking.
Podcasting saw over 1 million new shows launch in 2020 but only 220,000 in 2021. Existing shows are also exiting as growth slows despite still being faster than most other media.
Top Podcasts Remain Highly Profitable.
The top podcasts can operate profitably at scale with production costs around $500k-1m annually. Their high 60-90% ad margins and $40-45 CPMs make them great small media businesses.
Intimacy Drives Strong Engagement.
Listeners feel personal connections to hosts by hearing voices in intimate contexts over time. This drives 70-90% ad listen-through rates and higher engagement versus other digital ads. Listen to the full episode