By Sophie Anderson, Associate Director, Podcast Sales Marketing
Whether you're a podcaster, a publisher, a network, or an advertiser, podcasts are big business. Just look at Alex Cooper's deal with SiriusXM, Joe Rogan's renewal with Spotify, or the Kelce brothers' deal with Amazon, just to name a few.
It's clear that networks and audio media companies are all in on enticing top talent -- and the benefits are clear for podcasters and publishers. But what does it mean for advertisers?
At one time or another, most major players in the podcast advertising space have claimed to be the top podcast network. Big podcast deals can have an impact on podcast network ranking, and, depending on the sources and definitions, those competing claims may very well be true. For advertisers, it's important to determine what "No.1" actually means (and if there should be quotes around the term).
Here are some things to consider:
Check the source. Look for reputable third-party sources, like Edison Research, which is the only resource that includes all the players in the podcast landscape. And if a media company is grading itself without providing measurement criteria or any corroborating third-party data, be wary.
Define what No. 1 means. If a company says they're number one, full stop, you should be suspicious. Look for the specifics, like is the company a top network with women or does it have the most shows at the top of the charts? Once you know how it's defined, you can figure out if that number one status will mean successful campaigns for your brand.
Evaluate the advertising benefit. Having the top network, by any definition, is only as meaningful as the impact it can have on your advertising efforts. For example, if a company is number one for podcast reach, look into the factors pushing it to the top. Is it one big show skewing the numbers? That's all well and good if that show aligns with your brand and draws the audience you hope to reach, but not so much if it isn't a fit.
Top shows and the number of top shows on various charts is one area where there are a lot of competing claims and differing methods of evaluation. For example, Edison Research evaluates show performance over a quarter, but Apple Podcasts measures the percentage change in listenership day to day. And big podcast deals can impact a podcast network's standing. For example, when SmartLess Media joined the SiriusXM Podcast Network, it brought its flagship podcast SmartLess, a top 10 show, with it. As for what the charts or the top shows on them mean for advertisers, brands should look at it as critically as the other No. 1 claims.
Here are some questions to ask:
Do you want to advertise on those shows? These charts tell you which podcasts pull the biggest audiences, but that only matters if you want your ads to play in the context of the content.
How do these shows impact the network? Another way to assess the podcast charts is to look at which network they're on. Then, you can start evaluating the podcast network as a whole, which is key if your podcast campaigns need more than show-level buys to make an impact.
Is my target audience represented on the charts? Remember, your podcast ads need to reach and influence your target consumers. Think more about the type of content your audience is listening to than where that content sits on the charts.
At their core, big podcast deals tell advertisers which media company and/or podcast network they need to advertise with. For example, to advertise on audiochuck's podcast catalog, you have to work with SiriusXM Media. But there is more to the story -- like where and how can audiences access the content (and hear your ads).
When looking at podcast monetization, consider how it works. Let's look at the industry terms:
Walled garden. If the podcast is in a "walled garden," that means that its audience can only listen to the show through a specific platform or app. For example, Call Her Daddy used to be exclusive to Spotify (meaning only their subscribers could listen) and now that it's with SiriusXM Media, it's part of an open ecosystem (meaning audiences can access the content anywhere they listen to podcasts, including on Spotify and YouTube).
Open ecosystem. The open-ecosystem approach democratizes access to podcast content, allowing audiences to listen to the shows from their app of choice. When a podcast host says you can find them "Wherever you get your podcasts," this is what they mean. When an advertiser wants to run ads on those shows, they work with the show's or network's monetization partner. For example, though a listener may tune in to the Dateline NBC podcast on the iHeart app, an advertiser would need to work with SiriusXM Media to reach them.
A mix of the two. There may be nuance to what's available in a walled garden vs an open ecosystem. Look at Spotify and The Joe Rogan Experience, which is monumental to its podcast network offering. Though the podcast was once in a walled garden, the 2024 deal changed that approach. Now, audiences can access the show from other apps, though the video version of the podcast remains exclusively available on Spotify.
The fact is that podcast audiences listen to more than one podcast. Recent Podsurvey data from SiriusXM Media shows that podcast listeners listen to shows in an average of six genres, with comedy, society and culture, true crime, TV and film, and politics categories leading. So, it's critical that advertisers take a holistic view of their media partner and what their target audiences may be listening to when it comes to selecting a show or investing in a network.
The most significant thing that those big podcast deals should tell advertisers is how actively a platform or media company is investing in its podcast network. And the next step should be to assess whether the network is the right fit for their brand.