Mid-tier creators are turning to podcasts to get on advertisers' radar as more brands test digital audio. They lack the reach of podcasting's biggest stars, like Joe Rogan and Alex Cooper's "Call Her Daddy" show. What they have instead is a passionate audience, and that is what connects them to sponsors.
“At the end of the day, advertisers are looking for one thing, it’s engagement numbers,” said Brian Conlan, president of DAX US. “Whether it’s social media, or video views, or downloads for a podcast, they want to know how each [channel performs].”
Creators who have grown a following on social media, or through other channels, are seeing success in launching podcasts, according to Conlan. He added that “video-first” production isn’t necessarily better than audio.
“Creators getting into the video space, that’s the buzzword,” Conlan said. “Some of the data we’ve seen already is that video hasn’t truly grown their audience the way audio can. So it’s kind of following the bouncing ball.”
Video is still in the “early days” of providing adequate revenue streams for mid-tier creators, which Conlan defines as between 10,000 and 50,000 downloads per month.
Globally, there are between 30,000 and 40,000 active podcasts in the mid-tier, according to Rob Walch, vice president of podcast relations at DAX US and Captivate.
“Everyone now from a creator standpoint is trying to figure out what is their strategy around podcasts,” said Conlan. “A lot of influencers are becoming podcasters. It’s about creators finding the right mix for the right result.”
Creator-content advertisers have continued to invest more spend in lower-tiered creators over the past five years.
“In aggregate, mid-tier creators together provide tremendous value for brands, because if I have a thousand people who listen to my podcast and they tune in every week, and if I have a brand on there, they’re going to convert to purchases,” said Conlan. “That’s the environment brands want to be a part of.”
Sports and entertainment podcasts lead the mid-tier podcast segment, according to Conlan. Many professional and college sports teams have regional followings with passionate fans who will respond to advertising. In the entertainment category, popular streaming series and classic TV shows have podcast followings.
“There’s a fanbase for everything, and I think that’s the beauty of podcasts, you can really get niche in terms of the targeting of content you want to listen to,” Conlan said.
Launching a podcast connects mid-tier creators with advertisers who tend to be new to digital audio and plan to increase their budget.
Programmatic advertising lets advertisers test new podcast audiences at scale in this emerging channel.
“I think it’s a good exploratory marketplace for brands, seeing what works and doesn’t work for the end consumer, in terms of what kind of content they’re listening to, and then from there you can always work directly with creators to build out more of those holistic sponsorships,” said Conlan. “Programmatic has been a great door opener for creators to get a lot of monetization they haven’t been able to get in the past.”
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