The Podcasting Buzz – Why Now Is the Perfect Time to Invest in Audio

Outline:

• The most noticeable changes in consumer behavior
• Successful audio-oriented companies
• The exponential growth of the podcast industry
• Rumble Studio’s new funding round

The most noticeable changes in consumer behavior

We’re going towards a screenless future driven by audio. Smart speakers, audiobooks, audio social apps, and podcasts are part of this new trend and people consume them voraciously. Here are some examples:

• More people in the U.S. listen to podcasts weekly (80 million) than subscribe to Netflix (67 million).
•  More than 27% of U.S adults and over 38% of UK adults own a smart speaker today.
• The global audiobook market size is expected to reach $35 billion in 2030 at an annual compound annual growth rate (CAGR) of 26.4% from this year onward.

Given the vast amount of time we spend in front of screens and the negative effects of doing so (on our eyes, sleep, weight, learning, social skills, and mental well-being), it’s no wonder we’re looking for useful alternatives like audio tools and content. As creators, business owners, and investors, we have to adapt to this change in consumer behavior, and now is the perfect time to get ahead of the curve.

Successful audio-oriented companies

Some market participants have already realized this trend and have found support for their audio businesses. Investments are pouring into the audio space, whether through a capital raise or by acquisitions from big tech players.

Funding

Let’s first look at some companies that have raised millions of dollars in the last 3 years to fund their innovative audio tools.

The American tech company Audioburst found a way to reduce the time spent searching a website or an app with their audio business-driven search engine. They created the first talk audio embeddable player that allows people to find bite-sized pieces of content without skimming through the entire platform making the brand’s content instantly accessible to the user. After 4 years since founding the company, they raised $10 million in 2019 which has led to partnerships with big brands like Hyundai and Samsung to create the world's largest indexed library of voice-driven audio content.

Another company revolutionizing the audio space is Descript. The shift from printed media to audio and video content has urged creators to find new tools like Descript to edit and deliver it to their audience. Tech solutions like automated transcriptions and realistic text-to-speech AI voiceovers have earned Descript $50 million in funding which makes them one of the world’s leaders in audio editing tools.

We could go on with many other innovative audio solutions that have captivated investors throughout the last years, but instead, let’s just share with you a brief list that you can explore on your own.

 Acquisitions

Due to their recent growth, several audio-driven companies have been acquired by major firms like Spotify and Twitter 

Amazon has set itself to compete fiercely with Spotify to become the leader in the podcast industry with its acquisition of the podcast network called Wondery for approximately $300 million. Wondery had created and curated dozens of audio shows since 2016 and it rapidly became a top five podcast publisher just two years after its creation. Thus, it’s not surprising Amazon’s interest in them to help their music division accelerate its reach to a wider audience across the globe.

Another company making a big move in the podcast industry is SiriusXM, a satellite and online radio broadcaster, with its acquisition of the podcast network Stitcher for an astonishing $325 million. To maintain their competitive edge in the audio space, large companies are trying to capture the younger generation of listeners with what small podcast networks already offer to their audiences: quality audio shows, expertise in storytelling, and a considerable fan base deeply engaged with their content.

Big tech companies are strongly entering the audio space in search of success or some might say out of fear of falling behind. 

Here’s a list of some of the recent acquisitions:

The exponential growth of the podcast industry

The audio space is vast and is growing steadily but there’s a specific category that’s particularly booming in the last few years: podcasting.

Its global market size was valued at $11 billion in 2020 and it’s expected to reach $95 billion in 2028, expanding at an astonishing compound annual growth rate (CAGR) of 31.1%. The rapid expansion is driven by several factors such as:

• The flexibility of listening to audio in different circumstances (even simultaneously with other chores).
• Its wide use for educational purposes, whether it’s part of a formal online course or more informally as what is today known as edutainment (education and entertainment).
• The accessibility of podcast content thanks to the widespread adoption of smartphones, hearables, smart speakers, tablets, and other devices.

As we’ve talked about in another article, there’s rapid growth in this industry. Brands are taking advantage of the art form not just for brand awareness but also to create a strong community of customers (and fans) due to the audience’s already high engagement with this branded media format.

What do all successful branded podcasts have in common? A study by software company Captivate.ai on top performers in this space found that they share 4 key features:

1. Consistency: while hundreds of podcasts in the study didn’t even deliver 20 episodes, the most successful ones published 189 episodes on average, with a frequency of 1 episode per week i.e. they were committed
2. Conciseness: the average podcast length of the top performers is 34 minutes (compared to the industry’s average of around 43 minutes). They not only keep the content shorter but both the intro (at 1:56 min.) and outro (39s) average below the industry’s mean.
3. Guest-centric: brands focus intensely on their guests usually having their quote in the intro (80% of them use this approach) and giving them a lot of space to shine.
4. Peripheral: top branded podcasts spend a very short time (11s) talking about their brand and focus on delivering value their customers will appreciate.

It’s not just about investing a lot of money and hoping your brand will rise to glory with a podcast, the main focus should be on adding value to your customers and making it about them and their needs. Ironically, to be a successful branded podcast, brands put themselves in second place right after their clients.

And putting ourselves in second place like top performers do, here’s what’s new with Rumble Studio.

Rumble Studio’s new funding round

We have taken podcasting to the next level with our unique asynchronous recording system.

With our end-to-end audio tool, we offer individual podcasters, agencies, and brands all they need to make their shows faster and easier to set up, and more efficient and versatile than any other tool in the market. We encourage our clients to take advantage of remote and asynchronous work, where they give extra flexibility to their guests and ensure high-quality content on every episode. With our tool, podcasters can consistently deliver content over time, and avoid podfade.   

To keep improving our services and reach a wider audience, we’re starting this summer with a new seed funding round. To discuss how you can become part of our growth journey, contact us here.