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This is Shaq podcast. In our new podcast. And we have a new podcast. Our very first podcast.
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Influencers, celebrities, journalists, random friends of yours, everyone has a podcast.
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Spotify plans to spend $500 million on podcast related acquisitions this year alone.
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But why is this happening now? Podcasts have been around for over a decade.
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To understand what changed to make podcasts the phenomenon they are now, we have to, hold on.
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This is better. Okay, we have to look at the big picture.
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So yeah, podcasts came about because of Apple, iTunes and iPods.
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Now we recently announced something new for iTunes and iPod and it's called podcasting.
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Apple brought podcast to iTunes in 2005.
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Podcasting of course is a concatenation of iPod and broadcasting.
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Steve Jobs called podcasts, TiVo for radio, which is an insanely dated reference, but can help us contextualize this whole shift.
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Before podcasting you had the radio, with its ads, unpredictable content, and your favorite hosts timed to specific days with specific shows, but with podcasts.
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You can download radio shows and listen to 'em on your computer or put 'em on your iPod anytime you want.
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And you can subscribe to these shows too, so you never miss an episode.
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Plus podcasts are free just like the radio.
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With the release of internet connected smartphones, people could download podcasts onto their phones directly instead of having to load the audio onto their phone from their computer.
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And that made listening to shows even easier.
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Still in 2009 only 11% of the US population had listened to a podcast in the last month.
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But then a podcast arrived in 2014 that changed everything.
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From this American Life and WBEZ Chicago, it's Serial. One story told week by week, I'm Sarah Koenig.
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Serial broke with established podcast rules. It was a narrative, mystery, crime show that told a single story over many episodes versus just one.
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And that new format drew listeners in. It became the fastest podcast to ever reach five million downloads and streams on iTunes.
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Around the same time that Serial and other highly produced shows became popular, cars were becoming more connected too, which gave commuters an opportunity and place to listen.
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Plus new direct to consumer companies had money to spend on podcast ads.
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The confluence of all of these factors pushed the podcast business to new heights.
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This week's show is brought to you by Casper. This episode is sponsored by Dell. Turn your great idea into a reality with Squarespace.
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Last year podcasts created nearly half a billion dollars in revenue.
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Maybe you've heard hosts read ad and give you a promo code. That's a main way shows make money.
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And that code helps advertisers know which show has sold their product.
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Shows make money in other ways too. Some adapt their story for TV and others host live events.
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Other than the recording costs, audio is relatively cheap to capture, particularly compared to video.
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So it can be a lucrative business. Media companies and individual creators can try out podcasts without risking a ton of cash.
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And they can publish their shows in the same places that major publishers do.
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Now that there's so much money in podcasts companies want more control and visibility into how well their ads actually work.
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So podcast technology is becoming more sophisticated and the field is changing.
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Promo codes might not be needed anymore. Advertisers want a more robust way to track ads, similarly to how they do with banners online.
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That's why the Interactive Advertising Bureau established its podcast measure technical guidelines in December 2017.
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With this new standard, advertisers now know what counts as a download, or a play, and they can get a real sense of how many people heard their ad.
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The ads themselves are becoming smarter and dynamic too. Which means one ad doesn't have to live inside the same episode forever.
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They can be swapped out with other ads as time goes on and podcasters can improve their ad offerings by guaranteeing timeliness.
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Everything is formalizing in an effort to make the field even more lucrative.
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Some podcast players are experimenting with exclusive content too, which is a fundamental change to the open world podcasts have traditionally lived in.
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Podcasts are starting to be tracked more like the rest of the web and the content is starting to be distributed more like movies or TV shows.
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So why does everyone have a podcast now? Because they're cheap to make, the stakes are low, and the opportunity to make some cash could be big.
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Plus who doesn't love the sound of their own voice.
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So now that you've just watched this video on podcasts, wouldn't you know it, I have a podcast too and you should check it out.
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It's called Why'd You Push that Button. We'll put a link below and you should click it.
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See what it's all about, check it out. All right, we'll see you later, bye.