Update June 4, 2024: Spotify Megaphone To Get Recertified
Another plot twist! Spotify Megaphone is working to get IAB certified again. It's unclear why they left earlier this year and decided to come back. Perhaps there was some blowback.
We also wrote about IAB and what it's all about.
Update May 20, 2024: Navigating Spotify's Latest Developments in Podcast Measurement
As promised, we have a good update for you. Spotify has been making some significant moves that could reshape the podcast landscape. I've been tracking these changes closely, because, let's face it, when Spotify changes something, it sends ripples across the entire industry. Here’s what’s new and why it matters for anyone in PR or content creation.
Firstly, Spotify has rolled out "Consumption hours" per episode, which shows how long listeners are tuning into each episode. Why is this a big deal? Because, unlike simple download counts—which can be misleading—actual listening time gives a real indication of audience engagement. This metric is a game-changer as it shows true listener commitment, and frankly, this is what advertisers and content creators should be banking on.
If you remember, we previously discussed the issues with relying solely on download counts in our blog post about podcast metrics. With Spotify leading the pack, many hosting platforms are likely to follow suit and integrate similar metrics to stay competitive.
For you, this means if you're working to place your PR clients in podcasts for maximum exposure, it's crucial to look beyond mere download data. Ask for detailed listening stats. This will help you pinpoint the podcasts where audiences are truly engaged, rather than just passively downloading episodes.
We're already seeing shifts in the industry due to this new metric. Take the recent episode of “Build your SaaS” for example, where they discussed the Acquired Podcast moving to Transistor.fm because they needed better analytics to serve their partners better (check out the episode).
Moreover, Spotify is moving away from the more general guidelines like those set by IAB, focusing instead on metrics they believe will drive revenue and growth within their podcasts group. A recent pivotal change is the removal of the “floor price” for ads on Megaphone. This means podcast publishers can no longer set a minimum ad price within the Spotify Audience Network (SPAN), potentially leading to increased revenue at the cost of some control over ad quality.
This could be a double-edged sword. On one hand, removing price floors could attract a broader range of advertisers. On the other, it could result in lower-quality ads—think unexpected and possibly off-brand interruptions during a podcast. This is something to be wary of, especially if your client's image and message are critical.
Finally, it looks like Spotify is doubling down on refining their advertising tools, likely in a bid to tap into the lucrative ad market dominated by giants like Google, Meta, and Amazon. As they enhance their measurement and analytics capabilities, expect Spotify to introduce more sophisticated tools designed to attract and benefit advertisers.
What does all this mean for you? It’s clear that the landscape of podcast advertising and measurement is evolving. Staying ahead means adapting to these changes quickly and leveraging them to maximize exposure and effectiveness for your clients.
I'll keep an eye on how these developments unfold and update you with any new insights. Keep tuned!
The podcast industry is currently undergoing significant changes as Spotify, the largest digital audio company—surpassing even giants like SiriusXM and iHeartRadio—has decided to leave the Interactive Advertising Bureau (IAB). This decision impacts not only Spotify but also related services like Podbean, Megaphone, Chartable, and Anchor, which are also no longer certified by the IAB.
Spotify issued a statement regarding their decision: “Spotify values our longstanding partnership with the IAB. For 2024, we’re taking a pause to make sure that we can participate in an active way and will reevaluate a formal membership later this year. In the meantime, Spotify remains committed to the IAB mission. We champion its efforts and remain deeply connected to the work supporting digital advertising without direct membership this year. While Megaphone, Chartable, and S4P are not officially IAB certified at this time, all three platforms are compliant to the IAB v2.1 standard.” This response underscores a temporary step back rather than a complete withdrawal, with a focus on aligning their internal standards with IAB’s rigorous benchmarks.
Challenges of Podcast Measurement
Measuring podcast listenership accurately presents unique challenges. For instance, platforms like Apple Podcasts may automatically download episodes for users, a feature that does not necessarily correlate with actual listenership. This becomes problematic as downloaded episodes might not be indicative of people listening to those episodes. Notably, with the release of iOS 17, Apple Podcasts altered its behavior to no longer automatically download older episodes, which could impact how downloads are interpreted as a metric of listenership. Advertisers, who are keen on ensuring the maximum return on their investments, find these metrics critical as they seek assurances that their advertisements are reaching an engaged audience.
The significance of IAB certification lies in its ability to provide a common standard that public relations (PR) agencies and advertisers rely on to accurately assess the popularity of podcasts. This standardization is crucial for the podcast industry, particularly for those involved in podcast PR firms, who use podcast databases and podcast search tools to find and evaluate potential podcast partners for marketing campaigns. Without a unified measurement system, the task of evaluating the reach and effectiveness of podcast advertising becomes more complex and uncertain.
While Spotify's strategy might suggest a shift towards developing their own proprietary measurement specifications tailored to the needs of their partners and advertisers, other major players in the podcast hosting arena like Libsyn have renewed their commitment to the IAB standards by getting recertified. Additionally, Captivate and Buzzsprout are currently undergoing the recertification process, indicating a continued industry-wide emphasis on maintaining credible and consistent metrics for podcast performance.
For podcast PR firms that rely heavily on accurate and reliable data to strategize their outreach and advertising placements, these developments could necessitate adjustments in how they utilize podcast contact databases and podcast finders. The changes may lead to a more fragmented landscape with varying standards unless a new consensus can be achieved in the industry.
In conclusion, Spotify's temporary pause from the IAB marks a pivotal moment for the podcast industry, emphasizing the need for podcast PR firms and other stakeholders to stay adaptable and informed. As the landscape evolves, tools like PodSeeker will become even more crucial in helping users navigate the increasingly complex world of podcast databases and search capabilities, ensuring they can still effectively connect with audiences and measure podcast performance accurately.
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