Podcast revenue is belittled by the 780m+ episodes Australians will listen to in 2019
This article is based on total market figures derived from the Edison Infinate Dial report Australia 2019, and my imperfect accumulation of CPM rates.
On that number of downloads in a year, with a CPM ($ per 1000 downloads) of $20 (rough CPM assumption, one ad per show), the gross revenue in Australia’s podcast ad market would be $15.6 million.
It’s an oversimplification by me. And would only be correct if every single podcast downloaded in Australia had one advertisement, which they won’t.
This estimate is far off the $29m predicted by a recent PwC report. PwC’s figures might include branded shows, higher CPM rate, multiple ads in podcasts and other things. Ask PwC.
Even 29m looks small next to 780m+
Comparitively, in media revenue vs hours spent using the medium (podcasts, radio, tv, internet etc) podcasts are at the absolute bottom end.
They earn revenue of only $0.01 per hour (in the US) according to an Andreessen Horowitz report, great read.
A little depressing in one form. But closing the gap between radio at the very least will be described by someone in an office somewhere as an ‘opportunity’ — I know I have!
Arguably (and slightly tangental) this is another example of podcasts in 2019 being like the internet 20 years ago. Not because it’s in a bubble (1999) but because it hasn’t figured out ways to make money that are also valuable to audiences.
Let’s not have an argument about how host-read ads are a fantastic-intimate-experience that audiences act on 75% of the time and epitomise the synergy of revenue-tainment.
The business side of the English-speaking podcast industry can’t peak at host-read ads.
Something else will come along. Email me if you know what it is.
Check out the Chinese equivelant. They’re not doing too bad with revenues (A16Z again). In short, direct contributions to creators.
Interested in your thoughts, let me know in the comments.
About me at the moment
I’m working at the Mushroom Group to set up our podcast production here. Early days.
I also co-founded the little podcast production company Nearly Media.
