They’re the new kid on the podcast block, but Spotify is seriously challenging the domination once enjoyed by Apple and to a lesser extent, Deezer. Since arriving in the market in 2019 their podcast audience has already doubled, and shelling out $400m on Gimlet Media, Anchor, Parcast and now The Ringer shows they are committed to becoming a major player in the podcast arena.
Is Spotify the right platform for promoting your business? In this blog we’ll take a look at what Spotify can offer and you’ll have a better idea if it is the right platform for you!
Spotify ‘gets’ podcasts
Podcasts first launched on Spotify in October 2018. Since then, they have worked hard to make sure podcasts are just as much of a focal point as music is. As well as hosting third-party podcasts from anyone that wants to upload them to Spotify, they have also established an impressive collection of first-party content that’s only accessible via the Spotify app and nowhere else.
These podcasts are available to Free and Premium users alike, and while that won’t be changing any time soon, Spotify is launching a new monetization model that will allow podcast creators to offer premium subscriptions to its most loyal fans, so an additional revenue stream will shortly be forthcoming.
It’s initially exclusive to users in the United States and is being tested with a select group of 12 creators, but Spotify will roll it out to more countries and additional podcasters in the coming months. Podcasters can easily choose certain shows/episodes to be locked behind a subscription, and currently Spotify has three price tiers they can choose from: $2.99, $4.99, or $7.99/month.
Rather than subscribing directly through the Spotify app, users subscribe via the Anchor website. Paid podcasts will appear throughout Spotify just as regular episodes do, but instead of showing a play button next to them, there will be a lock icon. When tapping on that icon, users will see a pop-up message directing them to the Anchor page, where they can subscribe and gain access to it. Very user-friendly!
I make no apologises for declaring my own opinion from the start, Spotify really understands its audience. Remember, the basis of its existence is streaming, so it relies on the attractiveness of the product on offer to attract its viewers and listeners.
With some 299m of them it’s a massive potential target market for any podcaster to aim at, and it’s fair to say that it is easier for a podcast to be discovered on the platform than it can often be on Apple.
The offering is therefore very much designed with its audience in mind, they know how people love to binge on boxsets, across a wide range of devices. And since you can stream/download on Android, ios, desktop, TV, gaming console or car, you are very rarely without an option to access it!
They have allowed and encouraged shows to upload their entire back catalogue in exchange for running ads at the beginning and end of each episode. This is a fair compromise on the Youtube model of offering ads with the option of paying for not having to view them, but it’s fair for both the advertiser and streamer.
The subscription model is also well thought out. allowing podcast creators to charge fans extra for exclusive content via its podcast production platform Anchor. Unlike Apple, Spotify says it won’t take a cut from these creators for two years (aside from transaction fees), and will only require 5% of the revenue after this.
In contrast, Apple take a 30% cut of creator-led subscriptions in the first year, and 15% in the second, so Spotify’s model could be more financially attractive to podcast makers.
Although Spotify has increased fees in recent times, the policy of not taking a cut from the contributors makes subscribers more likely to accept this rather than turning away from the platform and resuming their love affair with Apple!
From the marketing perspective, Spotify’s analytics provide the audience data to enable you to really know your audience and tailor your content to suit.
Definitely a platform that knows its business and deserving serious consideration as a vehicle for your podcast.
Matching content with platform
Whether Spotify is the ideal platform for your podcasts depends very much on the subject matter and the target audience.
Remember that the prime motive for using Spotify is entertainment, and as a result the platform has a younger demographic than Apple, with more emphasis being placed on subjects such as comedy and sport. Apple, with its older, richer demographic, is more news orientated.
If your product is aimed at a younger audience, and is entertainment or leisure focused, Spotify would be a perfect platform for it. And even if your product is practical rather than entertaining in its focus, it is still worth considering. Creative podcast creators can always find an angle to deliver factual information in an entertaining style, dry subjects don’t have to result in boring podcasts!
Spotify is here to stay and is an excellent alternative or addition to your Apple-based podcasts. We recommend it as a great platform for promoting both yourself and your brand.
Operations Manager, GLProUK
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At GLProUK we love creating, refining and promoting digital content for ourselves and our clients. Our team is defined by huge amounts of experience in podcasting, video, photography, animation and everything in between, and share a passion for innovation.
We understand that your project is unique, with its own audience, objective and budget. Our scalable workflow allows us to cater across the spectrum, helping everyone from start-ups right to industry leaders to produce original exciting digital content, tailored to our clients’ requirements.
We take the time to listen and learn about your brand and objectives. Our aim is to make your experience as easy as possible, whether we’re working with you to develop a full marketing strategy, fulfilling your production brief, supplying a production crew or offering post-production services. We’ll even have some fun along the way!
If you have an initial idea that needs developing, a marketing goal to be fulfilled or an audience that needs reaching, our team are here to help you smash your objectives. We specialise in tailoring messages to a highly professional and compelling standard, presenting our clients with a vast range of audio, video, photography, web, or graphic design options.