The acceleration of technology over the past year has created a massive ripple effect, permanently shifting consumer lifestyles, expectations and behaviors to a future-ready state. In response, UM APAC created the Asia-Pacific Innovation Annual – delving into cutting-edge advances in entertainment, commerce, digital health and connectivity that are catapulting the region and providing new opportunities for brands.
Podcasts have quickly become one of the most malleable channels in the world, with content ranging from global news (BBC News), controversial (Joe Rogan smoking marijuana with Elon Musk), to niche content (Stuff You Should Know). Audiences are increasingly integrating podcasts into their routines, and advertisers are following with an estimated 22% increase in global CAGR by 2024, according to PwC data.
Although on par with the global average overall, podcasts are at different levels of maturity in different APAC markets.
China is the second largest podcast market in the world by volume after the United States. Media is growing rapidly, driven by on-demand availability; 6,000 new podcasts were created between April and November 2020, according to a Singpod report.
Unlike most markets, the Chinese podcast market leans towards the subscription model and often focuses on educational and informational content for personal development and career progression. It’s no coincidence that nearly 20% of podcast listeners in China work in the tech industry.
The world’s third largest podcast market is India, which is expected to grow at a CAGR of 34.5% through 2023. Anchor, Spotify’s podcast distribution platform, added over 25,000 Indian podcasts in 2020 alone Indian Vox Media states that in 2015 most podcasts were in English; however, local creators have joined in and local language podcasts are now climbing the charts.
The Australian podcast market is maturing, with over a third of Australians listening. The power of podcasts was demonstrated when a true crime podcast, The Teacher’s Pet, renewed interest in a cold missing persons case, leading to new witness statements and ultimately an arrest 36 years later.
Obviously, the only thing the various APAC markets have in common is a shared sense of geography, but this high degree of diversity within the region also makes podcasts the perfect media format – as a medium highly distributed and customizable, podcasting flourishes when local creators start producing content that is highly relevant to their audience.
Indonesia presents a particularly interesting case. Three years ago, podcasts were virtually non-existent in this market. Today, however, 31% of Indonesians are weekly listeners, 12 percentage points ahead of the global average, according to data from a 2021 GWI study, conducted by local radio hosts and leading comedians. their fans in the category. Who would have thought that local horror stories would become the most popular and widest content genre in Indonesia? This speaks to the basic ability of the podcast for niche content creators to find their audience.
Audiences are increasingly incorporating podcasts into their routines, and advertisers are following with an estimated 22% increase in global CAGR by 2024.
The strength of the medium lies in the minimal barriers to entry: podcasts are often inexpensive to produce, and quick and easy to create. Platforms like Anchor, a distribution platform for recordings and downloads, democratize creation.
If marketers have learned anything from TikTok, it’s that APAC consumers are looking for authentic content. Podcasts offer that. Listening to a podcast is like being part of an intimate conversation. Southeast Asian consumers are increasingly starting to consume podcasts on YouTube, reflecting the importance of connecting to personalities – Deddy Corbuzier, an Indonesian TV presenter has 15.7 million subscribers to his channel youtube podcast.
Podcast ads are often read by hosts and, like social media influencers, use personality integrity to sell products.
According to Spotify, 41% of podcast listeners in India trust podcast advertisements more than audio advertisements served through traditional channels, and 81% say they have acted upon hearing an advertisement. In response to the explosion of growth seen in the Philippines, Podcast Network Asia (PNA) recently launched Podmetrics, a platform that allows podcasters to monetize shows through affiliate marketing, brand campaigns and shoutouts. . Podmetrics has partnerships with brands such as Lazada, Shopee, and Zalora to organize mutually beneficial marketing between podcasters and brands.
However, consumption is fragmenting as the category expands and audio platforms compete for exclusive rights. Aggregates invest in local original podcasts that feature exclusively on their platform to attract audiences. Spotify signed nearly 20 exclusive deals with Indonesian podcasters in 2020.
At this end of the spectrum, programmatic offers are emerging, with DSPs like TheTradeDesk allowing advertisers to target demographics and backgrounds similar to digital offers. In the race for measurement, Spotify recently launched Streaming Audio Insertion (SAI), providing accurate measurement and audience insights that media agencies and advertisers depend on.
China is the second largest podcast market in the world by volume after the United States. Media is growing rapidly, driven by on-demand availability; 6,000 new podcasts were created between April and November 2020.
Podcasts are reinventing the audio world. As advertisers struggle to justify their spend, the focus is on media metrics and the ability to scale audiences. At the same time, marketers need to consider whether podcasts are the right platform for a large-scale message. This is a situation where pressure for reach and frequency, as well as completion rates, could threaten the notion of authentic marketing.
Building on the success of APAC influencers, the podcast market thrives on meaningful connections with personalities. A convergence of emerging platforms is creating a new era of authentic marketing in APAC. Podcasts create remarkable opportunities for brands to connect with engaged listeners. Marketers must continue to prioritize authenticity to drive higher-quality relationships, invest in both relevance and audience reach, and leverage engagement to unlock new opportunities in the market. beyond the frequency of purchase.
Podcasts began as a global top-down content offering, although in APAC they have transformed to become inherently bottom-up. Hyperlocal channels and content thrive in APAC and podcasters will continue to localize the format.
This is the fourth in a six-part series
- Retail Transformation – The Future of Retail in APAC
- Digital Health – APAC Leads the Way in Digital Health Ecosystems
- Augmented Reality: Renewed Optimism for AR Across Asia-Pacific
- Podcasts are widely adopted across the APAC region