The podcast industry is gearing up for a robust 2024, brimming with optimism for growth, diversification, and technological innovation. Key industry leaders, including Jen Sargent, CEO of Wondery, and Conal Byrne, CEO of the iHeartMedia Digital Audio Group, shared their insights on the sector’s prospects.
Global expansion takes center stage
Despite recent challenges, podcasting remains on a growth trajectory. Podcast industry leaders foresee opportunities on a global scale. Both iHeartMedia and Wondery are actively pursuing international audiences, capitalizing on the burgeoning interest in Latin America and Europe.
AI’s crucial role
In a bid to globalize the medium, iHeartMedia is embracing artificial intelligence (AI) for translation and transcription. Byrne revealed plans to leverage AI to translate and voice content from its extensive podcast archives into multiple languages. While the technology isn’t fully scalable yet, it’s set to undergo testing in the coming months, with a more robust implementation expected in the latter half of 2024.
“It’s not just about accessing audiences in the language they prefer; it’s also about building businesses in those territories,” emphasized Byrne.
Wondery’s global expansion and content diversity
Amazon-owned Wondery is also expanding its global footprint. Collaborations with local creators and talent in countries like Germany, Mexico, and Brazil are part of their strategy. Additionally, Wondery is localizing and adapting popular shows like Business Wars and Killer Psyche for international audiences.
Diverse content portfolio
2024 promises a rich tapestry of podcast industry content, spanning various genres. Both iHeartMedia and Wondery are planning to diversify their offerings, including comedy, sports, kids and family, business, and history. These expansions encompass a mix of original shows and partnerships with established creators.
Embracing daily listening trends
The rise in daily podcast listening has not gone unnoticed. Podcasting companies are responding by considering more frequent content releases. This shift reflects an understanding of listener preferences and their commitment to daily podcast consumption, even over social media.
iHeartMedia and its podcast dominance
iHeartMedia holds the top spot in the podcasting realm, boasting 884 active shows and a U.S. monthly audience exceeding 33 million as of November 2023. This makes them a formidable force in the podcast industry, as measured by podcast measurement platform Podtrac.
Podcast industry Addressing the needs of diverse audience
iHeartMedia recognizes the growing demand among Black and Hispanic podcast listeners, two of the sector’s fastest-growing segments. The company is leaning into The Black Effect podcast network, which it co-owns, and My Cultura, a joint venture, to cater to these demographics.
Spotify’s expanding horizons
Despite facing setbacks, Spotify is looking to tap into new audiences with its audiobooks offering. The company has also been making deals, such as partnering with The Unwell Network, to continue expanding its podcasting presence.
Optimistic outlook for advertising revenue
Podcasting executives anticipate a surge in advertising revenue in 2024. Last year’s challenges with marketing budgets have given way to optimism fueled by national brands’ momentum.
The growing podcast advertising industry
In 2022, U.S. podcast ad revenues surged by 26%, reaching $1.8 billion, according to the IAB U.S. Podcast Advertising Revenue study. Projections indicate that revenues will more than double between 2022 and 2025, reaching approximately $4 billion.
Balancing Ad-supported and subscription models
While advertisers are showing increasing interest in podcasting, there is also a growing trend in podcast subscriptions. Both iHeartMedia and Wondery anticipate exploring multiple revenue streams beyond advertising.
Expanding beyond audio: TV adaptations and video podcasts
Wondery is leading the way in envisioning TV adaptations of podcast content, such as “Dr. Death” and “WeCrashed.” Additionally, the company is experimenting with video podcasts, offering a visual dimension to audio content. This approach, while not suitable for all shows, is expected to gain traction in 2024.
iHeartMedia’s innovative packaging
iHeartMedia is exploring creative ways to package and sell podcasts to brands. The company’s approach extends beyond impressions, fostering opportunities for creators to expand their offerings and potentially increase their revenue.
M&A prospects in 2024
The potential for mergers and acquisitions in the podcasting industry remains on the table. Growth in the segment, combined with the availability of capital for early-stage companies, is likely to fuel interest in M&A deals.
The podcast industry is poised for an exciting 2024. With an eye on global expansion, the integration of AI, and the diversification of content, podcasting executives are confident about the sector’s growth. Increasing advertising revenues, combined with a surge in subscriptions, indicate a bright future for podcasting. Furthermore, the exploration of TV adaptations and video podcasts opens up new avenues for creators to engage audiences in innovative ways. As the industry continues to evolve, mergers and acquisitions are expected to play a role in shaping its landscape.
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