A $20 Billion Market: How did Podcasting get this big?
The podcast industry has experienced a significant surge in popularity over the past two decades. What was once an unfamiliar concept is now booming with new podcasts and an increasing number of listeners embracing this audio medium. Currently, over 2.4 million podcasts are available on various digital platforms, such as YouTube and Spotify.
This article explores the reasons behind podcasts' unprecedented popularity in recent years.
How did we get here?
To better understand the current podcast industry, it is essential to reflect on its historical context.
While this may reveal my generational bias as a GenXer, many of us who are older can recall a time when families gathered around the radio to enjoy a variety of programs. Whether it was news, politics, weather updates, religious content, or pure entertainment, parents and children often engaged in playful disputes over which station to listen to, much like the battles over the TV remote.
However, times have changed. More and more people are now turning to a new audio content source: podcasts. The term "podcast" is commonly believed to originate from its initial association with iPods and MP3 players from the past. Initially, podcasts were niche media products primarily available on Apple iTunes and produced by independent voices.
Today, podcasts have become an integral part of global media consumption. Additionally, they present an excellent opportunity for marketers to reach their target audience, particularly considering that every iPhone comes pre-installed with the Apple Podcasts app. Major technology and media players, such as Google, Amazon, and Spotify, have also invested in attracting and accommodating podcast listeners by launching platforms and enhancing their existing apps.
Why are podcasts so popular?
Based on the most recent survey results, a handful of leading factors have caused the popularity boom in podcast listening.
As stated by 60% of respondents, the primary motivation for listening to podcasts is for entertainment. Additionally, 55% mentioned learning as a significant reason, while 52% listened to a podcast to have something to accompany their other activities.
These primary motivations for listeners are entertainment and education, which are reflected in the most popular podcast topics among listeners. Comedy takes the lead, with almost half (47%) stating that they regularly tune in (consistent with previous studies). Following closely behind are entertainment, pop culture, and the arts (46%). Politics and government (41%), science and technology (40%), and history (40%) also hold significant places among the most frequently consumed podcast topics.
There’s a podcast for everything.
Podcasts are available on a wide range of topics. Enter any keywords into a podcast search engine to discover the vast variety of subjects covered. Podcasters convey their passion for their interests, resulting in an enthusiastic and in-depth exploration of topics beyond what is typically found in blog posts or other types of content.
With such significant diversity in one industry, its popularity is on an unstoppable surge. You could be looking for life coaching, financial advice, comedy, sports or even the leading online slot sites; you can always guarantee that there’s a podcast for it.
How popular, exactly?
The United States is the leading country in podcast popularity, boasting the highest number of podcast listeners worldwide, with over 100 million individuals tuning in.
The growth of podcasts in recent years has been remarkable, with nearly 80% of Americans aged 12 and above now being aware of podcasts. This represents a more than 30% increase compared to ten years ago. It is worth noting that just a few years ago, most Americans did not incorporate podcast listening into their daily routines. The transformation that has occurred in under ten years is truly remarkable.
Podcast statistics in the USA:
· A majority of Americans between the ages of 12 and 54 (53%) have listened to a podcast in the past month, and approximately 79% are familiar with this medium.
· Additionally, 75% of individuals in the United States aged 12 and above have engaged with online audio in the past month. Among this demographic, 38% are monthly podcast listeners.
· The age group that exhibits the highest podcast consumption is the 35-54 age range, with 43% of listeners falling into this category.
· With a record-breaking number of 90 million weekly podcast listeners, podcasting has achieved its highest levels of popularity to date.
· It is worth noting that 91% of Americans own a smartphone, while 36% of individuals aged 12 and above possess a smart speaker.
· Of those who own a smart speaker, 43% have one device, 20% have two, and 38% own three or more.
Economic Impact
Predictions for the podcasting industry are difficult due to the uncertain economic conditions expected in the upcoming year. However, the possibility of a recession, concerns about layoffs and consolidation, and a general sense of uneasiness may impact the industry. This could lead companies like Apple and Spotify, who have made significant investments in the industry, to be more cautious with their budgets.
Despite this, podcasting is expected to remain favourable as long as there are no major catastrophes. In terms of numbers, industry experts anticipate that podcast advertising revenue will surpass $2 billion by the end of 2023. Furthermore, by 2024, it is projected that this revenue figure could reach $4 billion.
The Future of Podcasting
The aforementioned statistics provide evidence that the podcast industry is experiencing significant growth and is projected to continue on an upward trajectory.
Perhaps even more astonishing is the estimation that the podcast market will reach a value of $4 billion by the year 2024. This serves as a clear indication of the immense size and worth of the podcast industry.
Given the current circumstances, there is no better time to become involved in the podcast industry. Leading content creation platforms such as Spotify and YouTube are already actively supporting and promoting this medium, emphasising the importance of capitalising on the growth of podcasts before it becomes too late.