Industry Views

Pending Business: Being Realistic About Podcast Revenue

By Steve Lapa
Lapcom Communications Corp
President

It looks like the podcast business is hitting those ever-present speedbumps.

No, I am not predicting a demise. I’m just asking why there weren’t a few more hardball questions.

If you sell or manage with eyes wide open, you’ve already read what the February 15 New York Times article chronicled. The cutbacks, drops, and hiring freezes hitting the double-digit-growth podcast business has some in the radio business saying, “Told ya so.”

Who has the chutzpah to say that to Tom Brady and Michael Strahan of Religion of Sports, or Michelle Obama of “The Michelle Obama Podcast?” When your bank account is on fumes, you speak the economic truth. The formula of star power driving unique audio content didn’t instantly convert to super-sized audience levels attracting super-sized revenue. What did VOX, Spotify, Amazon, NPR and other well-respected players miss?

— Never assume, (because assuming…) An out-of-the-box assumption listeners would pay for content to create a separate income stream, didn’t really take. Even the most aggressive marketer would think twice before assuming that listeners generating millions of downloads of free podcasts would suddenly pay to listen. Maybe a select few passionate followers would, but could you change the historic perceived value of the masses? When it comes to paywalls for play, be sure to test, adjust, and re-test before you project income.

— Ad sales sell out levels. A typical podcast has about a quarter of the inventory available in a typical hour of most news/talk and sports talk programs. Yet despite podcasts with limited inventory and higher CPM for host-read ads inside the podcasts, the projections from those well-respected companies tanked. The reason is elegantly simple. Too much podcast inventory chasing too few dollars.

— It’s the economy, stupid. Thank you, political strategist James Carville. The story goes the phrase was on a sign in Bill Clinton’s campaign headquarters and helped Clinton beat Geroge Bush in 1992. Did any of the gurus consider the economy?

— Who would have thought print newspaper sales have something in common with podcasts? Did anyone consider the impact of endless ad inventory becoming a commodity despite celebrity content? Never easy to predict which celebs will convert from the big screen or TV to podcast audio.

I had the privilege of producing cast members of Discovery’s “American Chopper” in a 39-episode podcast series. Even those crazy motorcycle dudes were challenged bringing their millions of TV and online fans to the podcast world. Hindsight is 20/20. Let’s never stop learning so we can always aim for higher earnings.

Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com

Front Page News Industry News

Thursday, March 31, 2022

Criminal Trial Attorney and Radio Talk Show Host Arthur Aidala is This Week’s Guest on Harrison Podcast. Get ready for a deep dive into an analysis of the criminal justice system, Supreme Court politics, and the causes of spiking urban crime stats. Nationally famous New York defense lawyer and high-profile on-air TV and radio legal analyst, Arthur Aidala is this week’s guest on the award-winning PodcastOne series, “The Michael Harrison Interview.” For more than 25 years, Aidala has handled high-profile cases at the investigative, trial, and appellate levels, including a famous win for NFL Hall of Famer Lawrence Taylor in the United States District Court, Southern District of New York, and obtaining a full acquittal of William Rapetti in the highly publicized New York City crane collapse case. Now he’s been recruited to join the airstaff at New York City’s “AM 970 The Answer” (WNYM) to host a daily one-hour power-packed radio show (“The Arthur Aidala Power Hour”) currently in its third month on the air. Michael Harrison describes Aidala’s air work as “nothing short of fantastic.” Don’t miss this fast-paced, content-rich example of why “The Michael Harrison Interview” has been a favorite of media enthusiasts and talk radio junkies around the world for almost seven years. To listen to the podcast in its entirety, please click here.

 

Triton Digital Releases Streaming Rankers for February 2022. The most recent streaming ranker report from Triton Digital is released for U.S. listening in February. Triton’s rankers are based on Average Active Sesions (AAS) – the average number of sessions at any point in time in the reported time period, with invalid sessions omitted. AAS can be calculated by dividing Total Listening Hours by the number of hours within the reported time period (AAS=TLH/Hours in period). For the period Mon-Sun 6am-12am, iHeartMedia is the #1 publisher with 291,890 AAS. NPR Member Stations is #2 with 81,180 AAS, followed by Audacy at #3 with 65,774 AAS and Cumulus Streaming Network at #4 with 41,342 AAS. Other radio-related companies of note ranking in the top 25 include Beasley Broadcasting Corporate at #7 (18,423 AAS), Hubbard Broadcasting at #8 (14,884 AAS), Salem Communications at #11 (9,498 AAS), Urban One at #12 (8,084 AAS) and Bonneville International at #13 (6,783 AAS). See the whole report here.

 

Cumulus Boise Names Nancy Wirth Director of Sales. Radio and television sales pro Nancy Wirth is named director of sales for Cumulus Media’s Boise station group that includes news/talk KBOI-AM/FM, sports talk KTIK-AM/K237HA “The Ticket,” and three music brands.  Wirth most recently served as faith-based radio and TV group the Dove. She says, “Cumulus has always been the best of the best. I am ecstatic to be part of the Cumulus Boise team, and I look forward to working with everyone and growing in this dynamic company.”

 

Montemayor Joins Beasley Detroit as General Sales Manager. Another move in the sales department at Beasley Media Group Detroit as Lynn Montemayor joins the company as general sales manager for the cluster that includes sports talk WCSX-HD2/W228CJ “Motor City Sports Talk – The ROAR” and four music brands. Montemayor spent the past four years as a partner & chief marketing officer Detroit-based marketing firm Fortysix/5. Beasley Detroit VP of sales Tina Murley comments, “We are thrilled to welcome Lynn Montemayor to the Beasley Detroit team. Lynn is a highly respected, industry professional that has a keen understanding of client needs and how to build winning marketing plans. She is the perfect addition to our amazing team in Detroit.”

 

iHeartMedia Partners with Super League Gaming for Metaverse Projects. Forging ahead with its endeavors in the metaverse, iHeartMedia announces a partnership with Super League Gaming – a network of metaverse games, monetization tools, and content channels – that “will leverage iHeartMedia’s massive North American sales force of 1,500 sellers in every major market nationwide, as well as its vast roster of partners, to bring Super League’s highly-sought-after ad inventory and influencer network to brands looking to gain entry to the metaverse.” The two companies will also collaborate on the development and rollout of iHeartMedia’s “iHeartLand” virtual spaces and fan experiences across metaverse platforms as well as the distribution of Super League’s immersive new 3D and NPC (non-player character) ad units. The press release further states that “Super League will share its deep knowledge and insights on open metaverse gaming platforms such as Roblox and Minecraft. This includes the company’s robust suite of exclusive analytics to help guide the go-to-market plans and future-forward sales strategies for iHeartMedia’s portfolio of premium brand advertisers.” iHeartMedia EVP, digital distribution and platform partnerships Jessica Jerrick says, “As we develop and introduce our unique iHeart experiences in the metaverse this year, we’re thrilled to partner with Super League to create new and compelling ways to connect our brand partners to passionate fans in our virtual spaces and beyond. Super League’s expertise, coupled with their best-in-class ad tech and expansive inventory across Roblox games, puts them at the forefront of this exciting space and makes them an ideal partner for iHeartMedia’s new extensions in the metaverse.”

 

Alex Jones Being Held in Contempt of Court. According to numerous reports, including one from CNN, talk media personality Alex Jones is being held in contempt of court for failing to sit for depositions in the suit against him by families who lost loved ones in the Sandy Hook School shooting. Connecticut Superior Court Judge Barbara Bellis ruled that Jones intentionally failed to comply with the court’s orders but so far has not issued a warrant for his arrest. Jones’ attorneys say he is being advised to remain at home due to medical issues, but his attorneys also confirmed in a court filing that Jones has been hosting his daily “Info Wars” show from a studio away from his home. CNN’s report says, “Until he sits for a deposition, Bellis ordered, Jones will have to pay fines that will start at $25,000 a day on April 1 and increasing by $25,000 each business day.” Christopher Mattei is the attorney representing a number of Sandy Hook families and he argues that Jones should be jailed until he is deposed to show that refusing the court’s orders “are not worth it.”

 

 

Jesse Kelly Participates in KTLK, St. Louis’ ‘Patriot Speaker Series.’ Last weekend, Premiere Networks nationally syndicated talk host Jesse Kelly participated in the inaugural “Patriot Speaker Series” produced by iHeartMedia’s news/talk KTLK-FM, St. Louis “104.9 The Patriot” and hosted by KTLK morning personality Jamie Allman. The event took place before a sold-out crowd of more than 300 guests and featured a conversation between Allman and Kelly, who chatted about their careers in radio and the latest news headlines, before taking questions from attendees. Pictured (from l-r) are: iHeartMedia St. Louis market president John Beck, Allman, Kelly, iHeartMedia St. Louis SVP of programming Gail Austin, and iHeartMedia St. Louis SVP of sales Libby Nolan.

 

TALKERS News Notes. Pictured at right is nationally syndicated talk radio host and best-selling author Todd Starnes in front of The Ronald Reagan Ranch Center where he was invited to deliver the keynote address at an event hosted by Young America’s Foundation. He also delivered a speech to hundreds of college students at West Coast Baptist College near Los Angeles…..The new book from SiriusXM Urban View talk host Joe Madison hits the #1 position on the Amazon Political Literature Criticism book chart. Radio Active: a Memoir of Advocacy in Action, on the Air and in the Streets (Xlibris US, 2021) is described as “the story of Madison’s decades of activism, from his childhood in a segregated neighborhood in Dayton, Ohio, to interviewing Barack Obama in the Oval Office. It’s a delightful tale, a call to action and an eye-opening commentary on the racial divide that persists in America today.”…..Audacy expands its broadcast partnership with the New York Mets by making the Audacy app the exclusive free digital streaming home for all Mets games as part of WCBS-AM’s flagship partnership with the team. English and Spanish language broadcasts of Mets baseball will be available on the Audacy app for consumers within the Mets broadcast territory and Mets.com beginning Opening Day on April 7. Audacy New York SVP and market manager Chris Oliviero states, “Following one of the most successful off seasons in franchise history, we’re thrilled to gear up for the 2022 season by making our outstanding coverage of the Mets even more accessible to millions of local fans. In the car, on their phone or however they may be listening – in English or in Spanish – the Amazin’ faithful will now have the ability to seamlessly catch every pitch during what is sure to be an exciting season.”…..iHeartMedia announces a slate of original podcasts as part of its My Cultura Podcast Network launching in partnership with award-winning actress, producer, director and activist Eva Longoria. The company says the upcoming shows further My Cultura’s dedication to celebrating and elevating Latinx voices, stories, and content creators like Longoria. The projects span across genres – two of the series will be hosted by Longoria herself, including an interview series and a food and culture show. Longoria, along with actress Dania Ramirez, will also executively produce a scripted podcast series based on a true story. SVP, head of production and development for My Cultura, Gisselle Bances says, “We’re incredibly excited about this partnership, and the growth of our network, as we continue to tell our stories and celebrate our Latinidad. We’re thrilled to partner with Eva as we continue to increase the representation and visibility of our community and cultura in the podcast industry and beyond.”…..TuneIn announces a newly inked, multi-year partnership agreement with Major League Baseball ahead of Opening Day that will – for TuneIn Premium subscribers – include live and on-demand game coverage of all 30 MLB teams, on-demand post-game analysis, Spanish-language broadcasting coverage, and spring training play-by-play coverage.

 

Russia-Ukraine War, Trump’s Putin Request, Gas Prices/Inflation, January 6/Ginni Thomas, Hunter Biden Investigation, Midterms/Trump & the GOP, COVID-19, Cawthorn Allegations, and West Bank Violence Among Top News/Talk Stories Yesterday (3/31). Russia’s ongoing invasion of Ukraine and the war’s effects on the European and American economies; former President Donald Trump beseeches Vladimir Putin with requests for damaging information on President Joe Biden; the high price Americans are paying at the pump and in grocery stores; the January 6 committee’s investigation and Supreme Court Justice Clarence Thomas’ wife Ginni’s texts to Trump chief of staff Mark Meadows asking him to overturn the 2020 election; the DOJ’s investigation into Hunter Biden’s business dealings; the battle for control of Congress in November’s midterms and Donald Trump’s influence over the GOP; the loosening of COVID-19 restrictions and concerns about the Omicron BA.2 variant; GOP Congressman Madison Cawthorn tells a reporter powerful Republicans invited him to an orgy and did cocaine; and the Palestinian-Israeli violence in the West Bank were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS magazine.