Podcasting Software Market

Part
01
of four
Part
01

Podcasting Software Industry - Market Size

By 2021, the global revenue for podcasting ad sales is projected to reach $1.36 billion, and by 2022, the market will reach about $1.62 billion. Below are our helpful findings, as well as our research strategy, to explain why the requested information could not be obtained.

MARKET SIZE

  • The global podcasting advertising revenue was $650 million in 2018.
  • According to PwC's Global Entertainment and Media Outlook, the global podcasting advertising "revenues are projected to grow at a nearly 30% annual rate between 2018 and 2022."
  • As per the IAB/PwC Podcast Advertising Revenue Study for 2018, the total revenue for the global radio industry is estimated to be $45.2 billion, therefore, "podcasting ad revenues are 1.4 percent of total radio revenues."
  • By 2021, the global revenue for podcasting ad sales is projected to reach $1.36 billion (from the Revenue Stream graph), and by 2022, the market will reach about $1.62 billion.
  • The estimated US market size for podcasting advertising revenue was $479.1 million in 2018.
  • The PwC report provided the compound annual growth rate of the music, radio, and podcast industry to be about 3% between 2018 and 2023.
  • The percentage share of the US podcast ad revenue in the global podcast revenue is 73.71%. [($479.1 million/$650 million) x 100]

RESEARCH STRATEGY:

To find the global market size of the podcasting software industry, we initially searched through various industry research reports, and other industry-specific sources including PwC Study (PwC’s Global Entertainment & Media Outlook 2018-2022), Strategy+Business, The Verge, Podsights, and others. The research yielded the number and percentage of podcast listeners, podcast ad revenue, market size, growth rate, and other podcast specific stats. None of these sources could provide any information on the global market size for the podcast software industry. However, this search also led us to the PwC report, which could only provide the compound annual growth rate of the music, radio, and podcast industry to be about 3% between 2018 and 2023.

Next, we decided to locate the US market size and percentage share in the global market to further calculate the global market size for the podcasting software industry. Some of the sources we consulted include IAB Study Report, Podcast News, Podcast Insights, Consulting.us, and others. But all the sources talk about podcasting ad revenue, growth rate, and not the podcasting software industry as a whole. Some sources also discuss the number and percentage of podcast listeners, consumer habits of podcast listeners, and other podcast-related stats such as the percentage of home listening podcasts, income of podcast listeners, etc. None of these sources discussed the market size of the entire podcast software industry in the US. Therefore, it was not possible to calculate the global market size using this strategy.

We then decided to adopt another strategy to calculate the global market size for the podcasting industry by finding the percentage share of ad revenue in the total revenue generated by the podcast software industry. For this, we looked through the IAB (Interactive Advertising Bureau) study, PwC study, and other media sources. But none of these reports and articles talked about the percentage share that ad revenue holds in the total podcast software industry revenue. Therefore, this strategy also failed in providing the desired stats.

Most notably, an extensive search to find the market size of the podcast software industry through various sources resulted in providing 'Podcast ad revenue'. However, we have noticed that many of the reports and articles were titled as "Podcast revenue" with the information providing on the "podcast ad revenue". For example, at IAB.com, the article titled as "The Second Annual Podcast Revenue Study by IAB and PwC: An Analysis of the Largest Players in the Podcasting Industry" only provided podcast ad revenue and not the podcast software industry revenue. Another blog mentioned the quote from Neal Shore, the CEO at Triton Digital, “I believe that podcasting will be here for a long time, and that revenue will ramp up quickly. I see podcasting becoming a billion-dollar market in 2020 or 2021 and a $3-billion market by 2023.” This again showed that even people from the industry are using the word "Podcast revenue" and "Podcast ad revenue" interchangeably.

This leads us to draw the conclusion that either the market research firms and industry reports have not provided an estimate of the market size of the entire podcast software industry or they are the same; the market size provided for the podcast ad revenue implies to the podcast software revenue. Based on the above-mentioned strategies, we have established that the information on the global market size of the podcast software industry revenue, excluding advertising revenue, could not be found. However, we found the global podcast ad revenue and also noted that many of the sources used the term "Podcast ad revenue" as the "Podcast revenue".
Part
02
of four
Part
02

Podcasting Software Industry - Leaders

The five major players in the podcasting software industry are Apple Podcasts, Spotify, Stitcher, Overcast, and Google Podcasts, with a market share of 52%, 19%, 5%, 1.4%, and 0.09%, respectively.

TOP PODCASTING SOFTWARE COMPANIES

APPLE PODCASTS
  • The company has a market share of 52%.
  • The company's website can be accessed here.
  • Some of its offerings are free subscription, 650,000 podcasts available, service in 155 countries, and podcasts in 100 languages.
  • The platform supports iPhone, iPad, iPod, HomePod, Apple Watch, Apple TV, as well as via iTunes on MacOS and PC.
SPOTIFY
STITCHER
OVERCAST
GOOGLE PODCASTS
  • The company has a market share of 0.09%.
  • The website can be accessed here.
  • Some of its offerings are free subscription, over 2 million podcasts available.
  • The platform supports Android.

Research Strategy:

Through this research we've learned that only few global players got into the market recently. In 2018, Google released its own podcast app for Android and Spotify recently acquired Gimlet Media and Anchor. Since Anchor has over 30% of all new podcasts on the market, this acquisition will put Spotify as one of the leaders. However, with the purchase being recent and the value that has added to the company is yet to be measured, no specific numbers can be given at the moment. One article states that ‘’Neither Pandora nor Spotify Technology SA would disclose details of their nascent podcast businesses, including how much money they pay for programming or earn from it, or how much time listeners spend on the medium.’’

Most of our research led to stats and figures on the US market, as well as identified key players such as Apple and Spotify. Therefore, these companies were identified as leading at the moment.

Additional market related podcast software include Pandora, Wondery, Audioboom, and Whooshka. More fragmented market companies and information regarding headquarters, features, etc. can be found here.


Part
03
of four
Part
03

Podcast Listener - Demographics

The typical podcast listener in the United States is a postgraduate white male aged 25-34 who has $200k in annual income.

AGE

  • Only 18% of American podcast listeners are between 18 and 24 years old.
  • Twenty-eight percent of American podcast listeners are aged between 25 and 34 years old in 2019.
  • Nearly 21% are aged 35-55.
  • Sixteen percent are aged 45-54.
  • Eleven percent are aged 55-64.
  • People older than 65 years old accounted for 6%.
  • Thus, the typical podcast listener in the United States is more likely to be between 25 years old and 34 years old since they have the largest share.

GENDER

  • Fifty-two percent of American podcast listeners are male in 2019.
  • As of 2019, nearly 48% of American podcast listeners are female.
  • Thus, the typical podcast listener in the United States is more likely to be a man since men have the largest share.

EDUCATION LEVEL

  • Forty-eight percent of American podcast listeners are more likely to have a college degree.
  • About 56% are more likely to be undergraduates.
  • Sixty-eight percent are more likely to be postgraduates.
  • Thus, the typical podcast listener in the United States is more likely to have some graduate degree since postgraduates have the largest share.

INCOME LEVEL

  • Nearly 32% of American podcast listeners are more likely to have an income level of $75k.
  • Thirty-seven percent of the American podcast listeners are more likely to have an income level of $100k.
  • Forty-five percent of the American podcast listeners are more likely to have an income level of $200k.
  • Thus, the typical podcast listener in the United States is more likely to have an income level of $200k since this income level has the largest share.

ETHNICITY

  • The typical podcast listener in the United States is white. (Explanation below)

ADDITIONAL INSIGHTS: MONTHLY PODCAST USRES - DEMOGRAPHICS

AGE
  • According to Edison Research, only 10% of monthly American podcast listeners are between 12 and 17 years old.
  • Thirty-nine percent of monthly American podcast listeners are aged between 18 and 34 years old in 2019.
  • Nearly 35% are aged 35-55.
  • People older than 55 years old accounted for 16%.
  • In 2017, the regular listener tended to be a millennial (18-34).
GENDER
  • Fifty-four percent of monthly American podcast listeners are male in 2019.
  • As of 2019, nearly 46% of monthly American podcast listeners are female.
  • In 2017, 56% of monthly American podcast listeners were male, while 44% were female.
EDUCATIONAL LEVEL
  • Twenty percent of monthly American podcast listeners have a high-school degree or less.
  • About 27% have some degree.
  • Twenty-five percent have a four-year college degree.
  • Twenty-eight percent of monthly American podcast listeners have some graduate school or advanced degree.
  • In 2017, the educational levels for monthly American podcast listeners were as follows:
    • High-school degree or less: 15%
    • Some degree: 27%
    • Bachelor's degree: 27%
    • Graduate degree: 30%
INCOME LEVEL
  • According to Edison Research survey, only 41% of respondents reported their income level. The majority of them have an income level of $100k-$150k.
  • Twelve percent of the monthly American podcast listeners have an income level of $75k-$100k.
  • About 17% have an income level of $100k-$150k.
  • Twelve percent of the monthly American podcast listeners have an income level of $150k or more.
ETHNICITY
EMPLOYMENT STATUS
ADDITIONAL FINDINGS
  • In 2019, 23-25% of US adults listen to podcasts daily or a few times a week.
  • About 70% of all Americans are familiar with podcasting totaling to 197 million in 2019.
  • Nearly 144 million (51%) of all Americans had ever listened to a podcast.

RESEARCH STRATEGY

To find the demographic profile of the podcast listeners in the United States, we hoped to find directly available information on this specific topic. We first checked if there were any available consolidated demographic profiles on research websites like Research Gate and Pew Research. Also, we had hoped to find any compiled or partial reports on these sites. Then, we checked research resources such as Deloitte and PwC, and statistics sites such as Statista. We also searched through the public domain and databases.

Therefore, we found a complete demographic profile of podcast listeners in the United States. This report provided the age, gender, educational level, and income level of podcast listeners in the United States. Unfortunately, it didn't provide any insights about the ethnicity of these users. We build a demographic profile based on the population that has the largest share, among others. As an example, people aged 24-34 have the largest share among other age groups, thus we assumed that the typical podcast listener is aged 24-34.

Also, we found a report from Edison Research about the demographic profile of monthly podcast users in the United States, including age, gender, educational level, income level, and ethnicity. In this report, we found that about 70% of all Americans are familiar with podcasting totaling 197 million in 2019. Among these 197 million Americans, 32% are monthly podcast users accounting for the largest share. Thus, we calculated the share of monthly users in the total population which is familiar with podcasting.
Monthly users share = (32x100)/70 = 45.71%
Monthly users ethnic profile:
  • Sixty-six percent of monthly American podcast listeners are white.
  • About 11% are African-American.
  • Nine percent are Hispanic.
  • Seven percent are Asian.

  • Based on this share which is the largest, since we have the ethnic-profile of monthly users, we assumed that the ethnic-profile for podcast listeners would be similar to the ethnic-profile of monthly users. Thus, the typical podcast listener in the United States is white.

    Part
    04
    of four
    Part
    04

    Podcast Listener - Psychographics

    On average, US consumers listen to seven podcasts per week. More than half of them use are iPhone users and most listen to podcasts to obtain knowledge on new topics/things.

    Habits Part One

    • The majority of podcast listeners listen to podcasts to acquire knowledge of new things. Others want to be entertained, remain up-to-date with recent topics, relax, feel inspired, escape, and for companionship.
    • About 54% of podcast listeners who listen to episodes on smartphones use Apple's iOS ecosystem, while 43% utilize Android.
    • This indicates that more than half of podcast listeners are iPhone users and the others are Android users.
    • Among all podcast listeners, 19% favor accelerating the audio, indicating that most do not wish to listen to episodes faster.
    • They are also more likely than others to possess smart speakers such as Amazon Alexa/Echo or Google Home.
    • Around 69% of podcast listeners say that podcast ads make them knowledgeable of brand-new services and products, which signifies that they are interested learning more about new offerings.
    • Each week, 61.2% of them spend more of their time hearing podcasts than they do viewing content on TV.
    • US consumers that regularly listen to the podcasts are known to receive less exposure to TV advertising. There is a higher probability that they subscribe to online video streaming platforms such as Amazon Prime and Netflix.

    Habits Part Two

    • Podcast listeners in the United States are more active on social media than the general population.
    • While 81% of the US population remains active on at least one social media platform, about 94% of podcast listeners in the country do the same.
    • On social media, they are also more likely to follow a brand that they prefer.
    • US podcast listeners are multi-taskers. Around 52% of them listen to podcasts while driving. Other activities consumers partake in while listening to podcasts include biking, running, or walking (40%), working out (32%), traveling (46%), and commuting on public transportation (37%).
    • On average, they dedicate up to 28% of their time for audio consumption to podcasts, with 15% devoted to streamed audio, 13% to owned music, and 24% to AM/FM radio.
    • About two-thirds of all podcast listeners most frequently listen to episodes using a mobile device.
    • Over half of them often multi-task while listening to podcasts.
    • Around 54% of them are more inclined to ponder purchasing a product being advertised.

    Values

    • On an episode basis, podcast listeners in the United States are becoming less loyal.
    • While 85% of US podcast consumers claimed that they consumed most or all of every downloaded episode, 80% made the same claim in 2018.
    • Podcast listeners in the United States are "hyper-engaged, super-supportive audiences."
    • Podcast listeners in the nation are devoted. According to a survey published by eMarketer, at least 7% of internet users in the country aged 13 and up report that they are daily podcast listeners. About 8% of them say they listen weekly.

    Media consumption habits

    • On average, US consumers listen to seven podcasts in a week.
    • In a single week, around 14% of consumers listen to 11 or more podcasts, 17% listen to six to ten, 21% listen four or five, 17% listen to three, 15% listen to two, and 16% listen to one.
    • The majority of consumers (65%) use a smartphone/tablet/portable device, followed by those that use computer/laptop (25%), while 10% use a smart speaker.
    • In terms of topics that consumers are interested in listening to in a podcast include: music (39%), news/information (36%), entertainment/celebrity/gossip (32%), history (31%), sports (30%), food (30%), mystery/thriller (28%), technology (28%), true crime (28%), wellness/self-improvement (27%), science (26%), games/hobbies (23%), travel (23%), fantasy/sci-fi (21%), drama (19%), philosophy/region (19%), business (18%), adult fiction (16%), biography/memoir (16%), home/garden (16%), romance (4%), children's (9%), and language (9%).
    • Over half (52%) of US consumers who listen to the online monthly podcasts, listen to the entire episode, while 41% listen to most of it, 5% listen to under half of it, and 2% only listen to the beginning.
    • For podcast listening platforms, 52% of the listeners use Apple Podcasts, while others use Stitcher (4.6%), Spotify (19%), and alternate platforms (21%).
    Sources
    Sources