As investment in the podcasting space continues, many audio companies have dollar signs in their eyes. But in the gold rush for audio money, the danger is that investors leave sections of their audiences behind โ and abandon the moral and commercial imperatives to make audio accessible.
YouTube is finally investing in podcasting. Despite the huge amount of podcast listening that takes place on the site, the worldโs largest video platform is only just now investing in solutions for audio advertising on its sites and apps.
It follows the news that YouTube is apparently enticing podcasters to create video versions of their audio content, offering โgrantsโ of up to $300,000 to the biggest networks in the space. Smaller grants are available to individual creators.
The slow encroachment of YouTube into the space follows huge investments from Spotify and other channels into podcast advertising and distribution. Spotify in particular has been on a tear of acquisitions, particularly around companies that provide tools that prove the viability of digital audio advertising.
Meanwhile, BuzzFeed Studios has partnered with Acast to launch a new suite of audio products, for instance, and the battle for exclusivity of shows continues. Much of that is predicated on the increasing commercial interest in the audio format. Podcast advertising is forecast to exceed $2bn by the end of 2023.
Eric John is vice-president of the IAB Media Centre. He says: โThe big takeaway from consumer behavior pre, during and post-pandemic is that podcasting has tremendous growth ahead. Consumers love listening and will integrate it into their lives wherever it fits. Advertisers love the flexibility to adjust their messaging on the fly. And, most importantly, brands are continuing to shift to podcasting simply because it works: when they run an ad, the cash register rings.โ
But those commercial investments are…