By Gary J. Nix
- Total estimated podcast ad revenue estimated to reach $2B in 2023
- The number of paid podcast events has increased by more than 2,000% in the past 7 years
Podcasting continues to be a critical tool to deliver content in today’s world and has seen a huge uptick in paid content of 2,000%. Spotify’s (SPOT -2.22%) acquisitions of Gimlet and Anchor are a testament to this reality. In addition, the low barrier to entry creates a system where the right podcasts can deliver diverse audiences to brands via the cultural connections within. Yet and still, the revenue models that come from the business of podcasting while Black remain widely varied even though the sector is estimated to reach $1 billion in 2021 and $2 billion by 2023.
Why This Matters: As a community known for establishing what is popular, Black creatives are positioned to demand a significant share of podcast sponsorship and other advertising dollars from brands in order for them to matter in the eyes of consumers. However, the popular advertising revenue model, to-date, appears to favor podcasts with more general audiences and fewer hosts of color.
Black creatives are positioned to demand a significant share of podcast sponsorship and other advertising dollars from brands in order for them to matter in the eyes of consumers
Successful shows including, The Read, Bodega Boys, and The Joe Budden Podcast notwithstanding, Black-owned or hosted podcasts are not consistently reaching the monthly earnings of approximately $90,000 per month like a Chapo Trap House. As usual, this has spawned innovative ways to make the podcasting business work.
An alternative revenue stream in podcasting is the subscription model. Black-owned podcasting networks such as The Black Guy Who Tips Premium Podcast Network and The MTR Network have concentrated on building close-knit communities, who listen to their podcasts and spread the word on their own because of the cultural relevance baked into the content.
Situational Awareness: There’s a lot of money to be made beyond advertising, like live podcasting events for the public are very very lucrative in terms of revenue generation with an average ticket price of about $100. Podcasts, no matter the business model, have been successful in monetizing experiences for their listeners, similar to the way radio stations organize concerts and festivals although at a smaller scale.
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