Steve Goldstein’s Amplifi Media works with media companies and podcasters in developing audio content strategies. Goldstein writes frequently at the Amplifi blog. Steve can be reached directly at 203-221-1400 or sjgoldstein-at-amplifimedia-dot-com.
Podcasting, a medium that began as a niche digital channel, has morphed into a massive entertainment industry. As with any evolution, podcasting has experienced various shifts, from its humble origins to a robust and complicated business.
Podcasting has gone through two significant eras and is about to enter its third. As I started teaching my course, “The Business of Podcasting,” at NYU a few weeks ago, I was looking for a way to summarize the rapid changes. Let’s traverse through the pivotal periods that shaped our industry into the powerhouse it is today.
1. The “MeUndies” era – the dawning days
This first era was the golden age when podcasting was finding its rhythm. The name of the game was authenticity, with baked-in ads forming the backbone of the monetization strategy. Host endorsements were everything. When a listener heard their favorite host advocating for MeUndies or Blue Apron, the association was personal, lending a genuine feel to the advertisements.
With its narrative prowess, public radio quickly realized the medium’s potential. Public radio marked its territory, creating and distributing informative, compelling, and intimate shows that topped the podcast charts. And who can forget Serial’s breakthrough storytelling and MailChimp’s sponsorship? With Serial’s release, podcasting was no longer the hidden corner of the internet. It was the talk of the town.
In October 2014, Apple took a giant step in embedding its podcast app natively on all its phones, ensuring the medium had a direct route into millions of pockets. Game on.
2. The throwing spaghetti against the wall era – expansion and experimentation
This phase saw podcasting diversify and expand like never before. With the introduction of dynamic insertion, audio ad tech turned sophisticated. It wasn’t just about placing an ad but delivering it to the right listener at the right time.
Big companies saw the potential and rushed in. Newsrooms, entertainment hubs, Hollywood agents, and more all wanted a piece of the pie. With investments came state-of-the-art studios, staffing up, and an influx of content. Many small companies were acquired at attractive multiples by media giants. It felt like you’d hear of a podcast launching every day.
Not unlike the video streaming wars, the objective was to attract audiences with new content and quickly acquire market share. Some of the shows were great. Much of the content was fleeting.
Simultaneously, there was an eruption of podcast player apps vying for listener attention, some boasting unique features. Facebook, Twitter Podcasts, Amazon, Mark Cuban’s Fireside, and others came on, all seeking attention. Many faded into oblivion, leaving just a few giants dominating distribution.
As the competition for ears rose, content success became more elusive. Hits were hard. Many companies shooting for the moon started cutting back on large contracts, guarantees, and staff. The era of throwing spaghetti against the wall to see what sticks – or as some call it, “dumb money” appeared to be on the wane.
3. The “What’s a podcast?” era – the visual paradigm shift
As achieving hits and durable titles became more challenging, podcasters focused attention on pushing and pulling more marketing levers to reach audiences.
Once a purely auditory experience, our medium has now stepped into the visual limelight. Thanks in no small part to YouTube. With its massive user base and dynamic content strategy, YouTube has become an unexpected but formidable platform for consuming podcasts. However, it has its challenges. The lack of RSS feed complicates monetization and tracking. According to parent company Google, that is likely to change by the end of the year.
The result is the lines between a podcast and a visual show are blurring. More creators are recognizing the potential of a dual-format of audio for traditional podcast listeners and video for YouTube users who, of course, expect a visual component.
Podcasting’s journey mirrors the broader digital evolution narrative — starting from simplicity, embracing experimentation, and culminating into a sophisticated blend of audio-visual enjoyment. As we stand at the cusp of this current era, one can’t help but wonder: what’s next for podcasting?
Only time will tell, but it’s a space that promises innovation, entertainment, and endless possibilities.
