By Jaqueline Koch

The end of 2015 offered many a prediction for the New Year and in the ever-evolving world of digital media, there is angst and excitement. But for some, there is unbridled exhilaration. Take celebrity digital strategist Rex Sorgatz, who was nothing short of exuberant in his forecast for podcasting which was published in the Harvard-based Neiman Journalism Lab.

“Media companies will continue adapting their franchises to podcasts,” he announced with a note of triumph, “podcasting networks will devise new aural experiments, and even more independents will pop up from unexpected places.” The result: “The podcasting scene will explode,” which is the unapologetic title of his article.

These are heady predictions. Is the hype justified?

podcast serial

As a starting point, consider the breakaway hit Serial: One million downloads in its first four weeks, 90 million as of October 2015, less than a year since its debut. More recently, The Message, an eight-part sci-fi podcast series, hit number one on the iTunes charts last November. More broadly, trend watchers have noted distinct reverberations in dinner party and happy hour conversations. The question is no longer, “What are you watching?” Instead, it’s “What are you listening to?” And behind this question lies a tantalising demographic: podcast listeners are young—67 per cent are between 18-34 years old—socially engaged, educated and tech savvy. Moreover, they tend to be a loyal bunch.

Matching content supply with demand has become an increasingly lucrative prospect for marketing outfits, networks and advertisers. Research conducted by podcast marketing company Midroll revealed that 63 per cent of listeners stated they bought a product or service after hearing it advertised on a podcast. Meanwhile, on average, a podcast can now command a US$20-$45 CPM (cost per 1,000 impressions) for a 60-second spot, whereas on average radio claims less than $2-$10 CPM. The take away for advertisers is becoming clear: Used in tandem with other media formats, podcasts offer an additional—and cost-effective—platform to reach more customers.

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