Monetizing podcasts and newsletters is made easy with Substack and Backtracks. The podcasting industry is debating between paid content and advertising, with a belief that a blend of both could be successful. The market for paid content is expected to be a blend of mass market and premium offerings, and Substack believes people will pay more for a wider range of content in the future. The current infrastructure for direct payments to creators and subscriptions in the US market is not as seamless as in other countries like China. The importance of being able to directly monetize cultural output and the rise of individual creators in monetizing podcasts and newsletters are discussed. Deplatforming and the control over content and monetization on centralized platforms like YouTube are also highlighted. Spotify's entry into podcasting is seen as both positive and potentially detrimental to the unique and niche nature of podcasting. Discovery and growth in newsletters are easier compared to podcasting, and public and private feeds allow for monetization. Apple's dominance in podcasting raises concerns, and education is seen as a significant driver of paid content. Newsletter and podcast customers are growing through easily shareable content and effective calls to action. Personal newsletters are not expected to replace social networks like Facebook, but they can replace the consumption of news and cultural content. Podcasts can be effective for startups to generate ROI and calculate customer acquisition cost, but there is skepticism about the effectiveness of podcast advertising. Measurement is crucial in podcasts and newsletters, and best practices for new podcasters and newsletter creators include starting with a clear purpose, consistency, and paying attention to feedback.
Intros
Monetizing podcasts and newsletters is made easy with Substack and Backtracks. Substack offers a platform for starting paid newsletters and audio content, while Backtracks helps audio content creators increase their audience and revenue. Substack focuses on paid subscriptions, while Backtracks focuses on advertising.
Paid vs advertising in podcasting
The podcasting industry is debating between paid content and advertising. The current assumption that everything has to be free is limiting the industry's potential. Paid audio content in China has been successful and the US market could benefit from a blend of ad-supported and paid content. Relevant and non-intrusive advertising is important to add value to the content.
Are advertisers overpaying for podcast ads?
Are advertisers overpaying for podcast ads?
- Challenges of measuring engagement and accurately assessing the value of podcast advertising
- Lack of standardized metrics in the podcast industry, similar to early days of internet banner ads
- Use of affiliate codes as a solution for tracking engagement
- Need for podcasting to develop better measurement techniques
- Potential resistance from advertisers charging based on download metrics
- Focus on improving the ecosystem for advertisers, publishers, and audiences.
What percent of the market will ultimately be paid content?
The market for paid content, including podcasts and newsletters, is expected to be a blend of both mass market and premium offerings. Substack believes that people will pay more for a wider range of content in the future. They argue that the current allocation of resources to creative individuals is insufficient and that society as a whole would benefit from more efficient mechanisms for supporting cultural production. Substack suggests that people would be willing to pay for better quality content if given the opportunity. Overall, there is a belief that there will be a substantial market for paid cultural content in the future.
- The market for paid content will consist of both mass market and premium offerings.
- Substack believes that people will pay more for a wider range of content in the future.
- The current allocation of resources to creative individuals is insufficient.
- Society would benefit from more efficient mechanisms for supporting cultural production.
- People would be willing to pay for better quality content if given the opportunity.
- There is a belief that there will be a substantial market for paid cultural content in the future.
Payment mechanisms
The current infrastructure for direct payments to creators and subscriptions in the US market is not as seamless as in other countries like China. Substack has found success in monetizing podcasts and newsletters through a subscription model, which has proven to be effective in generating revenue.
Price anchoring
The most profound aspect of the text is the importance of being able to directly monetize cultural output and how it can impact the future economy.
- The price of content depends on its quality and niche appeal.
- Podcasts allow listeners to choose and engage with specific content, creating a more direct and engaging connection with the audience.
- People generally underpay for content and would be willing to pay more if they considered the value they receive.
- There should be a greater emphasis on investing in culture creation as more aspects of the economy become automated.
- Individual brands hold significant value in the context of monetizing podcasts and newsletters.
Individual creators vs brands
The rise of individual creators in monetizing podcasts and newsletters has been enabled by the internet, allowing for a more personal and direct relationship between creators and their audience. This direct connection is valued by both the audience and the creators themselves. While big media brands will still exist, there is expected to be a significant increase in the number of individuals creating and monetizing their own content. However, monetization can be challenging for creators who don't fit into the traditional advertising model. Data-driven content creation can limit creativity, while direct relationships between creators and their audience allow for unexpected and enjoyable content. The philosophical question of who should have the power to choose what podcasts get made - advertisers or the people - is also discussed. The speakers believe that making content that people want is the key to success, but acknowledge that platforms can push creators off even if they are making content that people want.
Deplatforming
The most profound aspect of the topic of deplatforming is the issue of monetization and control over content on centralized platforms like YouTube, and the importance of maintaining independence and control over monetization and freedom of speech through decentralized platforms like podcasts and newsletters.
Key points:
- Centralized platforms like YouTube have perceived control over content and monetization.
- Podcasting and newsletters offer a decentralized alternative for maintaining control over monetization and freedom of speech.
- Independence and brand strength are emphasized as important factors in navigating the issue of deplatforming.
- The potential impact of platforms like Spotify on podcasting is mentioned.
Spotify
Spotify's entry into the podcasting industry has sparked a discussion on its potential impact. While one speaker sees it as a positive development, comparing it to the Netflix effect on content consumption, concerns are raised about the potential loss of the unique and niche nature of podcasting. The demand for highly produced and metric-driven content could lead to a decline in quality, similar to what has happened on YouTube. However, the other speaker emphasizes the value of discovery for podcasters and highlights the benefits of Spotify's platform.
- One speaker sees Spotify's entry into podcasting as a positive development, comparing it to the Netflix effect on content consumption.
- Concerns are raised about the potential loss of the unique and niche nature of podcasting due to the demand for highly produced and metric-driven content.
- A parallel is drawn with YouTube, where algorithm-driven trends have led to a decline in quality.
- The other speaker emphasizes the value of discovery for podcasters and highlights the benefits of Spotify's platform.
Discovery and growth in newsletters
Discovery and growth in newsletters is a challenging problem, but it is easier compared to podcasting. Newsletters can be easily shared through email forwarding, sharing buttons, or social media, allowing for low-friction sharing. In contrast, discovering podcasts requires more time and effort. To build a newsletter, writers can make their best and most accessible content free, while offering paid content for subscribers.
- Newsletters can be easily shared through email forwarding, sharing buttons, or social media
- Discovering podcasts requires more time and effort compared to newsletters
- Writers can make their best and most accessible content free to attract new readers
- Offering exclusive and unfiltered content to subscribers can build a loyal audience
- Multiple feeds on platforms like Backtracks can cater to different types of content.
Public and private feeds
Public and private feeds in podcasting and newsletters allow creators to separate their content into publicly accessible and privately accessible sections. Private content can be behind a paywall or require a login. Monetization typically involves subscriptions. Private feeds are not common in podcasting due to challenges in user experience and historical context. Discovery of curated content based on specific interests is also a problem. The video discusses the importance of personalized content and the value of search functionality in public and private feeds for monetizing podcasts and newsletters.
Apple's role
Apple's dominance in podcasting with 60% of podcast plays raises concerns about its interface and content management. The emergence of Chinese app Himalaya also challenges the future of podcasting platforms.
- Apple controls and distributes around 60% of podcast plays
- Gripes with Apple's interface and content management
- Chinese app Himalaya focuses on educational content and poses a challenge to podcasting platforms.
Will education be the driver of paid content?
Education is a significant driver of paid content, as people are more willing to pay for something that they believe will improve them in some way. This is particularly true in the Chinese market, where educational content is highly valued and seen as superior to free content. Podcasts, despite being considered entertainment, are often consumed for learning purposes. Educational content can also be longer and more well-produced, making it worth the higher price point.
- People are more willing to pay for content that they believe will improve them
- Educational content is highly valued in the Chinese market
- Podcasts are often consumed for learning purposes
- Educational content can be longer and more well-produced, justifying a higher price point
- Monetization of podcasts and newsletters is being explored
- Different payment models and release formats are being considered
- Professors may transition into podcasting to build audiences
- Dan Carlin's history podcast is mentioned as a successful windowed payment model.
Educational podcasters in China
- The video discusses the monetization of educational podcasts and newsletters in China.
- Educational content creators, such as professors, can build personal brands and monetize their content.
- Cultural attitudes towards paying for high-quality education and cultural output are shifting in China.
- This shift opens up opportunities for profitable content creation in the educational podcasting industry.
How are their newsletter and podcast customers growing?
Newsletter and podcast customers are growing by making content easily shareable and accessible through emails and searchable versions on websites. Effective calls to action and referral programs are used to encourage sign-ups and attract new subscribers. Utilizing other channels like social media is important for promotion. Quality content and previewing are crucial for attracting and retaining subscribers.
- Content is made easily shareable and accessible through emails and searchable versions on websites
- Effective calls to action and referral programs are used to encourage sign-ups and attract new subscribers
- Utilizing other channels like social media is important for promotion
- Quality content and previewing are crucial for attracting and retaining subscribers
Jack Ryder asks - In 5 years time, are personal newsletters going to replace social networks like Facebook?
- Chris Best of Substack believes that personal newsletters will not replace the social network aspect of platforms like Facebook
- Best argues that platforms like Facebook excel in facilitating real-life relationships
- However, Best suggests that the part of Facebook where news and cultural content are consumed should be replaced
- Best believes that newsletters and similar platforms with a direct personal connection can replace this aspect of Facebook
Debdut Mukherjee asks - Do podcasts actually work? If so, how do startups calculate the ROI & the CAC?
Podcasts can be an effective way for startups to generate ROI and calculate customer acquisition cost (CAC). Startups can track the effectiveness of podcast advertising through offer codes at checkout. They can also measure brand awareness and overall conversion growth. Eliminating podcast advertising and observing the impact on the business can help calculate its contribution to ROI. Perception and audience engagement are valuable outcomes of podcast advertising. Startups are encouraged to use podcasts as a direct line of communication with their audience. Pricing for podcast ads may vary. However, there is skepticism about the effectiveness of podcast advertising due to the lack of metrics and potential overpricing. Startups can use podcasts to tell emotionally resonant stories at scale, attracting writers and generating excitement about the company. Budgeting for podcasts can be done in-house, and having employees with podcasting and journalism experience can be beneficial. Realistic expectations are important when starting a podcast.
Measurement
Measurement in podcasts and newsletters is crucial for understanding audience behavior and targeting specific markets. It is important to know your metrics before starting and not rely on guesswork. Podcasts and newsletters can be used to sell products, and measuring audience growth and improvement is crucial. However, measuring in an absolute way may not always be the best approach, especially in the early stages.
Best practices for new podcasters and newsletter creators
Starting with a clear purpose and topic is important for new podcasters and newsletter creators. Consider factors such as number of episodes, frequency, and scheduling based on content and goals. Equipment and technical aspects are mentioned but not emphasized. For newsletters, start with a free version and gradually develop editing or strategy. Consistency and paying attention to feedback are key factors for success. Just start and don't worry about perfection. Regularly produce content that people want to consume to increase likelihood of being able to charge for it. In podcasting, start with practice episodes to learn from mistakes and improve over time. Have a thesis and try different strategies, adjusting based on what is learned along the way.