It’s been widely reported in the last week or so that Spotify is making strategic investments in podcasts, with its acquisition of Gimlet Media and Anchor. But it raises the question, are podcasts an effective way for music streaming services to extend their reach?
We recently conducted a survey on digital daily habits – including the proportion of all Australians aged 14 to 54 who had consumed music streaming services (e.g. Spotify or Apple Music) and/or podcasts on the last full day.
The results showed that around 1 in 4 respondents had used music streaming services – which was more than four times as many daily users than those who had listened to podcasts. Of those who had consumed podcasts, about half had also used music streaming services in the same period.
Based on this data, the incremental reach of podcasts to music streaming services is still low, at about 13%. As such, it’s not likely to massively increase Spotify’s userbase, however, given they have established audio advertising technology, I do think we’ll start to see better monetization of podcasts and more opportunities for advertisers to reach audiences.
To find out more, or access other podcast data from our upcoming report 'The ABC of XYZ : Understanding media, advertising and digital habits across generations in Australia', please do get in touch.