The world of audio has evolved over the years right from vinyl records to radio shows to music streaming and now to podcasts. In fact, if it is all to be believed then podcasts’ popularity has risen due to multiple factors including an increase in content by celebrities to different kinds of formats backed by an array of platforms from Spotify, and Audible, among others. “While there is a lot of innovation taking place, the podcast revenue model is yet to achieve meaningful scale in India,” Ashish Pherwani, leader- media and entertainment, EY India, said, told BrandWagon Online.
Making podcasts is quite inexpensive. A good quality microphone would cost approximately Rs 12,000-13,000, adding to the cost of a computer or a laptop. “Phones these days have good quality audio, you can create something podcast-worthy if you are in a silent place with no echo. The value per podcast if you discount the artist fee is virtually nothing. You don’t necessarily need to have a studio, you can record from the comfort of your home or in any quiet place,” Neelesh Misra, a podcast artist, said.
Revenue in the music, radio and podcast market in India is expected to reach $1,720 million by 2023, as per market research firm, Statista. This market segment is anticipated to demonstrate an annual growth rate (CAGR 2023-2027) of 6.52%, resulting in a projected market volume of $2,214 million by 2027. By 2027, the number of listeners in India’s music, radio and podcast market is expected to reach 634.9 million users.
Appeal’s the deal
India as a market for podcasts is growing gradually. As per a report by EY-FICCI, podcasts are gaining popularity in younger audiences with 33% of respondents listening to podcasts regularly every once in a while. Meanwhile, 67% of respondents have never listened to a podcast. Globally, in terms of listener intensity, Finland tops the list with India coming in at third with four percent frequent podcast listeners and 31% being occasional listeners. “The format has become more familiar to people over the last 10 years since we started. The growth in video podcasts via YouTube has also been a large factor, but the largest thing is simply that the kind of content you get in podcasts is really hard to get from any other medium, the combination of unrehearsed, authentic candid is the reason behind the fundamental appeal here,” Amit Doshi, head- IVM Podcasts, Pratilipi, said.
The new medium has particularly piqued the interest of advertisers and brands. 56% of podcast listeners trust those brands which advertised, while 60% reported taking action after listening to a podcast ad, according to a survey by IVM Podcasts. Furthermore, 22% of listeners researched the advertised brand. “To measure the impact of podcast advertising, brands employ various features like dynamically inserted ads, skippable ads, and branded episodes. Compared to traditional radio advertising, podcast advertising offers a more targeted reach, an engaged audience, and greater measurability. The industry is poised for substantial growth, projected to hit $4 billion in 2024. For brands seeking an effective marketing tool that avoids the pitfalls of traditional mediums, podcasts provide an intimate connection with the audience. With a loyal and engaged listener base, brands find podcasting to be a consistently reliable and powerful marketing channel,” Krishna Iyer, director – marketing, MullenLowe Lintas Group.
Furthermore, types of people who are podcast consumers exhibit ‘ad-avoidance’ behaviour and are the same one who consumes video via OTT, or YouTube Premium, and listens to music through premium subscription apps. Another factor is memorability – podcast ads are mostly host reads – and if an individual has chosen to spend significant time with a host, that will likely be an effective message than a standard TVC, or radio ad created for a wide audience. According to Doshi, podcasts are interest-based making it self-selecting in terms of audience.
Interestingly, 39% of urban Indians stream podcasts on Spotify, with Google Podcasts following a distant second at 22%, followed by Audible at 16%, as per a report by YouGov. According to industry experts, the accessibility and convenience of podcasts attract listeners. Additionally, the diversity of content attracts a broader audience with the candid nature of podcasting creating a personal connection with the podcaster and listeners. Moreover, the sense of community and engagement from listeners has resulted in the growth of the ecosystem. “India as a country has a rich heritage of storytelling and spoken-about traditions. While there is a huge growth potential, we have barely scratched the surface. I believe what makes a podcast artist stand out is the amount of hard work and rigorous process of reading up among others. We are witnessing some loyal consumers of podcasts. The journey is just about starting for podcasts in India,” Misra, added.
Competing against the Big Dogs
Radio is one of the oldest and one of the more popular audio entertainment mediums. While radio has its shows, it has also started focussing on integrated solutions including content creation, commissioned podcasts, and audio stories to their retail advertisers as a one-stop shop, as per a FICCI-EY report.
The stark difference between advertising on radio and podcasts remains the ability to target audiences. While radio is a one-for-all feed, podcasts allow advertisers the ability to target their audiences according to the preferences of consumers. Brands on radio have difficulty identifying its target audiences since it is a mass medium. “Podcasts have multiple genres catering to different types of audiences, including very niche audience segments. Radio on the other hand offers mass reach and caters to a broader audience spectrum – making targeting via podcasts a more viable success for brands looking to reach specific sets of engaged consumers. This flexibility makes podcasts a more exciting destination for certain brands and categories,” Anand Chakravarthy, chief growth officer, Omnicom Media Group India, said.
According to experts, the consumption of podcasts is only going to increase further as the landscape continues to change and evolve. Podcasts have gone from very few to a multitude, and as a result, ad spending is also set to increase. The ad rates of podcasts would differ from podcaster to podcaster as the medium has no standard advertising rates. The ad rates would differ from platform to platform as well as the podcaster and the popularity of the podcaster. “Besides investing in other marketing and advertising mediums, brands are largely investing in the podcast industry to identify and reach their ideal audience and boost their overall engagement, traffic and conversion ratio. Podcasts offer a unique, intimate, and highly engaged audience. Listeners are often deeply invested in the content, creating a more receptive environment for brand messaging. Additionally, podcast advertising allows for precise targeting based on demographics, interests, and niche markets, ensuring that ads reach the right audience,” Dhruvank Vaidya, head of podcasts, Spotify India, said.