Thursday, October 17, 2024

Why podcasts are dominating the election

Plus, Spotify's new spot in Hollywood

Hello and welcome back to Soundbite. Today we've got an update on more spending from Spotify Technology SA in an effort to recruit video creators to the platform. Plus, seven data points that explain why podcasts are the hottest thing in election campaigning right now.

Reach me through email, and if you haven't yet subscribed to this newsletter, please do so here. Tell a friend to sign up, too.

Also, a quick reminder that I'm hosting the On Air Fest Podcast Business Summit in February. You can get more info and fill out the form to be considered for an invite here. Tickets for the broader On Air Fest also go on sale today.

Now, here are some stories I'm watching:

  • I thoroughly enjoyed this story about OpenAI's crusade against a man who claims to have created Open AI (yes, with a space) first.

  • Spotify expanded audiobooks access to France, Belgium, the Netherlands and Luxembourg. The company says in the US, audiobook users spend an average of five additional hours on Spotify over their first two months after starting a book. Axios reports, per Bookstat, that without Spotify, the US audiobook industry grew 14% in unit sales between Q4 2022 and Q4 2023. With Spotify, it grew 28%. 

  • There's been no shortage of podcaster profiles over the past week. The Hollywood Reporter put Alex Cooper on its cover while the New York Times covered Pod Save America and Penn Badgley's Podcrushed.

  • This American Life launched a podcast subscription offering with ad-free listening, bonus content and full access to its greatest hits archive. In an email explaining the offering, host Ira Glass writes that he expects their ad revenue this year to drop by a third compared to a few years ago. The subscriptions will make up for the loss.

Spotify looks to build new Hollywood studios to court video podcasters

In recent years, Spotify has continued to push into video podcasting. As I wrote last month, the company is now offering as much as seven-figure sums to get YouTube podcasters to distribute their shows to the platform.

The only snag to putting podcasters on camera? Los Angeles traffic.

Driving to Spotify's office in Los Angeles, located in the Arts District, can be a slog, particularly for talent based farther west. So the company is now looking to build video podcast studios closer to Hollywood, a spokesperson confirmed.

The company will maintain its "Pod City," which includes more than a dozen podcast studios. With the addition of these Hollywood studios, it's hoping to lessen the hurdle for podcasters.

The possible investment in new real estate —  just a year and a half after I reported it was looking to sublease five floors at its 4 World Trade Center hub — suggests Spotify is deeply committed to this video push. After numerous layoffs that decimated its podcast division, the business is seemingly loosening its purse strings. 

Seven data points that explain the "podcast election"

I'm sure you've seen the headlines by now. We're living through the "podcast election." Rather than spending a majority of their time talking to mainstream or legacy media outlets, Kamala Harris, Donald Trump and their VP picks have focused instead on speaking to the masses through podcasts. Trump, for example, has done podcast interviews with Theo Von, Lex Fridman, Logan Paul and Dan Bongino. JD Vance, for his part, has spoken with numerous podcasters, including Megyn Kelly, Tucker Carlson and Bill O'Reilly. He also went on the New York Times podcast, The Interview.

Meanwhile, Harris recently went on Call Her Daddy, All The Smoke and Charlamagne Tha God's The Breakfast Club. Tim Walz has appeared on Pod Save America, SmartLess, Glennon Doyle's We Can Do Hard Things and Ezra Klein's program.

As far as straightforward interview shows go, the candidates have checked off a whole bunch from Edison Research's Top 50 list.

Yet, one potential interviewer has remained elusive: Joe Rogan, the undisputed biggest podcaster in the US. This could be changing, however. This week brought news that both Trump and Harris may or may not be considering, or actually taping, interviews with the star host. If one or both of them makes the leap — which I'll remind you is not confirmed in any way — it would certainly be a big moment, putting Rogan at the center of a fraught political environment. It's somewhere I'm not entirely sure he'd want to be. But still, podcast election!

So why has this presidential race become one waged over the on-demand airwaves? The data below helps explain.

The number of people listening to podcasts monthly has more than doubled since 2016

An estimated 135 million people listen to a podcast monthly while 98 million listen weekly, according to Edison Research's "Infinite Dial" study this year.  This is a significant uptick from 2016 when Trump first ran for president. At that time, 21% of Americans over the age of 12 said they'd listened to a podcast monthly. This year that figure is 47%. The reach of the medium continues to grow. At this point, it's basically mainstream.

People trust podcasters 

A few different studies suggest people trust podcasters more than other media personalities, particularly when it comes to hearing about the news. Research from Deloitte last year found that 75% of surveyed respondents said they agreed with the statement, "I trust the podcast hosts I listen to." Pew Research found last year that most people who get news from podcasts either say they trust that news more than the news they receive from other sources (31%) or trust it about the same (55%).

We typically see this play out through podcast product endorsements, the backbone of the industry. Promo codes on podcasts have become a parody at this point, but the reality is that they work. People often take action when a podcaster throws their weight behind a product, and if having a guest on counts as a tacit endorsement of sorts, listeners are likely going to pay attention.

Podcasters have also turned into superstars in their own right, inspiring fans to spend money to see them live and demonstrating how committed people are to the programs. Just this past week, The Rest Is Politics sold out the O2 arena in London. Some 13,000 fans attended. In August, the popular US-based podcast, Kill Tony, performed at Madison Square Garden over two nights. Those events generated $2.4 million in gross revenue with over 25,000 tickets sold, according to Pollstar.

Young people, and yes, men, are spending time listening to podcasts

Much of the coverage around Trump's and Vance's podcast appearances has centered on their efforts to reach young men. More generally, young people are spending time listening to podcasts. Last year, of people between the ages of 13 and 24, 77% had at some point listened to a podcast, according to Edison Research and SXM Media, and 47% had listened to one in the last month. From that same study, men and boys listened slightly more than women and girls in a month —  53% compared to 46%.

But perhaps greater than any single data point is the general recognition of how well the podcast format suits political messaging. Anyone who has listened to a general interview podcast knows these shows often allow guests to speak at length, without interruption, making it an ideal venue for a politician to communicate beyond their worn-out soundbites. Few other media formats provide this kind of access to Gen Z for such prolonged periods of time.

Generally, podcasts are no longer fringe, though the programs people listen to often stratify and can be niche. I frequently ask people what shows they consume and receive a wide variety of answers, emphasizing the fact that to reach the full spectrum of podcast listeners, presidential candidates will have to appear on numerous shows.

Don't expect the podcast campaigning to slow down in the years to come.

What should I write about next?

Send me a tip. I'm available over email, a DM on X, LinkedIn or my encrypted Proton Mail. You can also securely message me on Signal where my username is ashleycarman.01.

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