The Business of Podcasting with Matt Reustle, CEO of Colossus
Dec 13, 2023
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Matt Reustle, CEO of Colossus, discusses the economics of podcasting, the idea behind Colossus, selecting authentic sponsors, long-term alignment, and the power of podcasting in advertising.
Podcast production costs are low while advertising revenue can have high margins in the podcasting business.
Better measurement and attribution are needed in podcast advertising to demonstrate return on investment for advertisers.
Building a diversified podcast network can involve niche audiences, brand value, and the potential for content-to-commerce models.
Deep dives
Podcast Economics and Monetization
In the podcast episode, the guest discusses the economics of podcasting as a business and the potential for monetization. He emphasizes that podcast production costs are relatively low, ranging from $200 to $500 per episode, while advertising revenue can have high margins. He mentions the power law effect in podcast monetization and highlights the importance of targeting the right audience with more purchasing power to attract higher-paying advertisers. The guest also mentions the challenge of tracking and assessing listener base data for better ad targeting, but suggests collecting data through websites, surveys, and newsletters. Overall, the guest believes that the podcast business is in the middle innings of development.
Challenges and Opportunities in Podcast Advertising
The guest examines the challenges and opportunities in podcast advertising. They discuss the issue of skipping ads and the need for better measurement and attribution to demonstrate return on investment for advertisers. The guest advocates for more direct communication with listeners to gather data and offer alternative ways of consuming content, such as ad-free paid plans. They also mention that dynamic ad insertion, while beneficial for some, should be a shared revenue opportunity between platforms and podcasters. The guest believes that as the podcast medium matures, platforms like Spotify need to provide better tools and opportunities for podcasters and advertisers to drive growth and monetization.
Building Podcast Networks and Diversifying Revenue Streams
The guest explores the concept of building podcast networks and diversifying revenue streams. They emphasize the importance of niche audiences, brand value, and the ability to offer unique content across multiple shows within a network. They discuss the potential for B2B media playbooks with higher advertising rates and the possibility of expanding into events, community building, courses, and merchandise. The guest highlights successful examples of content-to-commerce models, where podcasters extend beyond podcasting to businesses or marketplaces related to their niche content. They also mention the need for alignment between podcasters and platforms, with shared ownership and a focus on long-term partnerships to unlock greater potential for both sides.
Building a Diversified Podcast Network
The podcast episode discusses the strategy behind building a diversified podcast network. The speaker highlights the importance of selecting partners who are deeply committed to their podcasts and prioritizing long-term value over short-term gains. They emphasize the need to be selective with advertising partners and maintain authenticity in ad reads. The speaker also explores the potential of exploring new niches and industries to expand the network's reach and impact. They highlight the unique power and intimacy of audio content compared to other mediums, and the potential for creating additional value and monetization opportunities for the network and its partners.
Maximizing the Impact of Guests and Building Relationships
The podcast episode discusses the potential to maximize the impact of guests and build lasting relationships within the podcasting industry. The speaker acknowledges the missed opportunities that can arise when guests are not leveraged beyond a singular interview, and highlights the value of recurring guests who resonate with the audience. They draw inspiration from successful content platforms that prioritize familiar personalities and long-term relationships. The speaker suggests potential strategies such as annual episodes with certain guests and creating a community for ongoing conversations. They also stress the value of off-mic chats and the lasting connections that can be formed through the podcasting process.
My guest on the show today is Matt Reustle, the CEO of Colossus. For anyone who is not familiar with the platform, Colossus is the home for a number of excellent podcasts, including Invest Like the Best, Founders, The Art of Investing and Business Breakdowns. Given my person experience with podcasts, I was really looking forward to learning from Matt about:
The economics of podcasting as a business;
Where the idea for Colossus came from;
How Matt and his partners decide which new podcasts to add to the platform;
Where we are in the maturation of the ad market for podcasts; and
All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of SNN or its affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or sale of any securities. The hosts and guests may be beneficial owners of the securities discussed. You should not assume that the securities discussed are or will be profitable.
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