This is the Download from Sounds Profitable, the most important news from this week and why it matters to people in the business of podcasting. I'm Newton Chaudhokadi. And I'm Gavin Gattis. The Download is brought to you by PodScribe. Find out more at podScribe.com. This week, connecting with podcasting’s Next 20m Consumers, Publishers Transform Podcasts into video talk shows, FTC Report takes issue with social platform data collection, and
privacy concerns, buyers estimate major losses, become wary of meta AI tools. Let's get started. This Wednesday from Tom Webster at Sounds Profitable, continuing at tradition started last year. Webster breaks down a slice of data from Sounds Profitable's annual podcast landscape study to focus on a group he's dubbed the Persuade Bulls. People who do not consume podcasts are not a monolithic group. And thus, it's worth focusing on why they say they're not listening.
26% of Americans 18 and up have never consumed podcast, down 2% year over year. When asked why they haven't consumed a podcast, the top reasons include My Existing Options Give Me What I Need from 34% of respondents. 27% prefer watching video over listening. 22% don't understand the benefits of podcasts. 13% of respondents can't find a podcast that seems interesting, which boasts well as it's down from 18% last year. The biggest decline of any reason
from last year's study. The reason with the most growth is existing options still providing what the person needs. The 26% who have never listened to a podcast can be broken into three segments. 1. The Unreachables 11% These are difficult to reach due to economic reasons, such as not having a device to play podcasts or lacking reliable internet access. 2. The Resisters 59% They may have heard of podcasts but have
perceptions that prevent them from listening. Reasons include preferring video, reading, or simply not understanding the benefits of podcasts. They aren't unreachable, but their habits may be more firmly entrenched. Though a big part of that is their strong preference for video over spoken word audio, which, as we have seen in recent years, is less a barrier
to podcasting than ever before. 3. The Persuadeables 30% This group, about 8% of the US population, 18 and up, or 20 million people, represents our next potential audience tier. Like the resistors, they prefer video, but are more open to considering podcasting and show signs that their existing media diet might have a few holes that podcasts could fill admirably. For podcasting to meet the Persuadeables and make a convincing case for the industry,
Webster offers a few key suggestions. Video is growing, and we need the current stars of video podcasting to talk about podcasting loudly and proudly. Short form content like TikTok and YouTube shorts can be vital for establishing podcasting's concepts and benefits. The decline of Twitter, slash X, and commercial radio content may have created a gap in daily
lives that short form video content does not fill. Podcasting would benefit from discussing our ability to become a companion that enriches passive media consumption time. A quote from the article, quote, The paths to growing our audience lies in understanding and addressing the needs of the Persuadeables, and in turn, even some of the resistors. By emphasizing the convenience and companionship podcasts offer, we can make downtime more interesting and valuable.
It's up to us to show them how podcasts can enrich their lives and fill the gaps left by their changing media habits. This Wednesday from Digit A's Tim Peterson, video podcasting has various forms from the static image over long form audio to full production that emulate the classic television talk show. The latter is becoming more common as the visual side of the industry grows.
As research from companies like Cumulus Media and Signal Hill Insights has found, YouTube is firmly the most used podcast platform for consumption and discovery in the United States. Even discounting YouTube Spotify says over 170 million users have watched a video podcast on Spotify. Video podcasting is here to stay, and with that comes a new workflow as formerly audio only concepts adapt to incorporating visual language.
For instance, a touch more started as Instagram lies featuring hosts, Sue Bird and Megan Rapinoe streaming from their own homes. When building the set for the formal video podcast version of the show, Vox took care to emulate the look of a living room, giving continuity to the show's casual tone established early on.
For podcasts having to make do with Zoom Quality Webcam recordings of hosts and or guests, production crews normally tasked with digging up archival audio and sound effects are now digging deep for good B-roll footage to use for visual interest. As the video side of the industry grows, so will the need for production teams, editors, and all the other ephemera needed for consistent video production.
Last Thursday from Alice and Shiff at Add Exchange, four years ago, the FTC issued an order compelling nine of the largest social media and video streaming platforms to share detailed information on how they collect and use personal consumer data. The analysis of that data has been compiled into a 100-page report titled A Look Behind the Screens, examining the data practices of social media and video streaming services.
Issues flagged in the report include indefinite data retention policies, instances of not fully complying with user data deletion requests, and targeting based on protected sensitive data, such as where an individual goes to church or their medical needs.
A quote from the article quote, but they all boil down to the same underlying issue according to the report, which is that these companies are incentivized to engage in the mass collection of user data for monetization because that's how they make most of their revenue. The problem of vast surveillance as the report calls it, therefore, has less to do with any specific product feature or aspect of a service the FTC official said. It's deeper than that. End quote.
Solutions suggested include giving users more granular control over how their data is used in automated systems, and to close the loophole of companies passively ignoring the existence of under-aged users so their platform doesn't have to comply with Kappa.
While podcast advertising exists on the periphery of this report, as the industry largely uses IP level data, it's worth taking notice and future proofing against any potential FTC crackdowns, especially with kids and family podcasting becoming a powerhouse in its own right. Last Thursday from Ryan Barwick at Marketing Brew, several ad buyers interviewed by Marketing Brew report issues with Metta's advertising platforms and tools.
Harry DelMage CEO of MHI Media tells of a campaign running for a fashion brand that targeted younger audiences primarily on Instagram. At some point, Metta's automated tool started targeting older 65 plus audiences on Facebook. While unsure if the change was an intentional effect or a bug, DelMage says performance tanked as the campaign delivered ads for trendy, teen-focused clothing to the opposite end of the demographic spectrum.
He estimates the incident cost his client somewhere in the high five figure range. Five other buyers interviewed by the story report personal experiences that led them to feel Metta's ad tools are broken or buggy. There are also the issues of disruptions. Metta's own website designed to track issues with Facebook ads manager has logged at least 12 disruptions to the ad tool since Memorial Day, with four of that dozen flagged as major disruptions.
Some buyers have distanced themselves from AI-powered tools choosing to manually build out advertiser campaigns in hopes of avoiding future issues. freelance media buyer David Herman, who estimates a Metta shops glitch back in June, cost his client portfolio between 300,400,400 and potential loss, says that glitches or not, there's few other options besides Metta. Quote, for the level of spend, there's no other place to go but Metta. And that's where Metta
can get away with these kinds of bugs because we always come back. End quote. Finally, it's time for our quick hits. These are articles that didn't quite make the cut for today's episode in full coverage, but are still worth including in your week and reading. This week, top podcast advertisers for August 2024 Magellan AI, the top three spenders
in podcast advertising for the month are T-Mobile, Amazon, and BetterHelp. Spotify launches SyncT feeds, these new SyncT feeds combine both free episodes and premium paid content onto the same Spotify show feed. The New York Times to launch podcast subscription plan for shows like The Daily by Ashley Carmen, the new subscription plan will give access to now pay walled back catalogs for shows like The Daily. And YouTube unveils nine new features that made on YouTube 2024.
New features include a wider release of auto dubbing and the ability to sort videos into television style seasons and episodes for better viewing on a big screen. And that was the download brought to you by SoundProphetful. I know we went through today's stories fast, so be sure to check out the links to every article mentioned right in your podcast listening app or on the download section of SoundProphetful.com. And thank you for sticking with us as
we bring you the top stories you might have missed from the past week. I'm Newton Chattelcotti. And I'm Gavin Gattis, our producers are myself Newton Chattelcotti, Brian Barletta, and Tom Webster. Special thanks to Speaker for hosting the download and thanks to you for joining us. Robot?