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Podcasting's Frequency Problems Are Not Unique & 3 other stories
Episode 64
Manuela: This is The Download from Sounds Profitable, the most important news from this week and why it matters to people in the business of podcasting. I’m Manuela Bedoya. Shreya: And I’m Shreya Sharma.This week: The App Tracking Transparency Recession, Streamers struggle with frequency capping, Bumper calculates listen time, and IPG Equity Upfront Spotlights Lack of Diverse Adspend.Manuela: The Download is brought to you by Magellan AI. Track the trends in spend, ad load, podcasts on YouTube, and more with Magellan AI's advertising benchmark report for Q4, available now. Link in the description or at Magellan dot AIShreya: Let’s get started. The App Tracking Transparency recession Manuela: While not hot off the presses, an early January article from Eric Benjamin Seufert discussing the effects of Apple’s App Tracking Transparency has come across The Download’s desk. As with most things in advertising, there’s nuance in the numbers.Quick refresher for those who haven’t seen the letters ATT dozens of times: App Tracking Transparency was a privacy policy introduced to iOS in 2021 that turns most forms of mobile data tracking into an opt-in service. As a result, a significant portion of iOS users have digitally disappeared for advertisers. An upset to the status quo, for sure, but the overall numbers provided by Seufert show the digital advertising market is not in a cyclical downturn. That said, social media platforms and other industries most likely to be affected by ATT have experienced a significant downturn due to a combination of both ATT-influenced changes and changing consumer preferences.
Which is to say, not macroeconomic factors. A market-wide downturn, as well as more stress on those companies most affected by ATT, would primarily come from an actual 2023 recession. Overall, digital advertising has been working as intended. Consumers are consuming. Seufert points to a Bureau of Labor Statistics graph tracking US employment in December of 2022. According to these, unemployment is the lowest it has been since August 1969. From Seufert’s piece:
“But one might assume that the economy has utterly imploded from reading the Q3 earnings call transcripts of various social media platforms. Alphabet, Meta, and Snap, in particular, cited macroeconomic weakness, headwinds, uncertainty, challenges, etc. in their Q3 earnings calls.”In the weeks since Seufert’s article, the overall numbers are trending to agree. The Download has recently mentioned podcast ad spend has remained up while others decline, but the same holds true for other areas. Last week a piece by Ethan Cramer-Flood for Insider Intelligence reports mobile app install ad spending increased 24.8% in 2022, on track to a market growth of 12% this year. Meanwhile, still on Insider Intelligence, Daniel Konstantinovic reports that while market concerns aren’t gone, ad-cost inflation has slowed. 84% of ad executives told Insider Intelligence they're not lowering budgets for 2023. From Konstantinovic:
“But now, the industry is adjusting to a new normal. With inflation steadily falling and the cost per ad decreasing, some of the advertising spending that was staunched in the second half of last year may return.”The future may be uncertain, but for the wider advertising economy, podcasting included, things tend to be stable or trending upward. And, it bears repeating, podcasting has never benefited f
Published on 2 years, 2 months ago