By Claire Obae
- The Obama’s are partnering ad sales tech platform Acast through their new Amazon Audible deal to reach wider audiences
- Projected revenue for the U.S. in the podcast industry is expected to hit $2.2B by the end of the year
Acast, the Swedish podcasting company, has signed a deal with the Obama’s Higher Ground for ads and distribution. The former President and First Lady are partnering with the podcasting platform through their new Amazon (AMZN -0.29%) Audible deal to reach wider audiences. By leveraging Acast’s ad placement technology in a sector that’s expected to hit $2.2 billion in revenue, the Obama’s are on course for podcast streaming dominance.
Why This Matters: Podcasting is a billion-dollar industry that has seen massive growth over the past few years. The industry is expected to have a whopping 27.2% increase from 2022 by the end of the year in the U.S. alone. Whereas the industry has grown significantly over the last few years, it still faces challenges around monetization and discovery. That’s where Acast comes in to play to assist the Obama’s.
Acast has set out to make it easier for both podcasters and advertisers. The company’s role is distributing and monetizing the Higher Ground production company’s podcasts. It wants to be part of that growth story by helping podcasters make money through ads and subscriptions, and if it’s getting help from some high-profile names along the way, why not?
The deal is part of a larger trend where big brands have started sponsoring podcasts to reach wider audiences. This deal is not to be confused with the lucrative multi-year deal the Obama’s made with Audible after exiting Spotify (SPOT -0.66%). The Obama’s original Spotify deal was signed in 2019 and was rumored to be worth $25 million. At face view, it may seem similar, but this is totally different as it focuses more on sales and distribution.
What’s Next: Podcasting has become a mainstream medium and a viable business model. But with its growth comes increased competition and more voices. As podcasts continue to grow, it will be important for them to leverage one another and create a greater impact. More cross-promotional opportunities between podcasts and other media platforms are likely to be on the horizon.
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