Not conversion but podcast is high on delivering affinity and awareness, says Amit Doshi of IVM Podcasts

Ask Amit Doshi about the monetisation and growth opportunities that podcast provides and he has a list of answers ready.

Doshi, the founder of India’s leading podcast company IVM, believes that the medium provides unparalleled reach to brands as podcast listeners are influencers on their own.

“The podcast audience is very affluent and they are influential in their own circles. These listeners recommend things to others after listening to podcast content and memorability is another benefit that brands can derive through podcasts,” he said during an interaction with BuzzInContent.com.

Doshi says the content recall on podcast is 95%, which is 30% higher than YouTube.

“Ads on podcasts are typically longer than radio ads. One can tell a more complex story about his brand in a podcast ad,” he added.

IVM Podcasts, which started operations in 2015, has around 70 shows in its kitty and has created about 3,500 episodes across these shows. Some of the show names include The Seen and the Unseen with Amit Verma, Election Soundtrack, SimbliFIED, Know your Kanoon and Cyrus Says, which is also its flagship show.

Talking about the revenue stream of podcast, Doshi said IVM gets almost 60% of its revenue from branded content and 40% from pure advertising. IVM is doing branded content with players such as Aditya Birla Mutual fund and Paytm Money.
Highlighting the growth rate of the medium, he said, “The audience for podcasts is only going to increase. The only question here is that at what speed it would happen. Brands are already jumping on the bandwagon,” he said.

He, however, said podcasts are not the best medium for conversion-based activity of brands. “Podcast content is not a conversion-based activity. It is more about branding, affinity and creates awareness around your brand.”

Excerpts: 

Why should brands essentially keep podcasts as one of their content distribution mediums in their content strategy?

The engagement and memorability brands get on podcasts is really high in comparison to other forms of media. A few reports mention that unaided recall rates on podcasts are five times higher than YouTube videos. Aided recall rate on podcasts are 95% and on YouTube is 65%. When one consumes video content, you are in such a condition that you can be distracted. One consumes audio content while doing other tasks, which are unconscious tasks. For example, when you are working out, on your commute and any other form of a chore, which are essentially unconscious. Therefore, the degree at which one absorbs content on podcast is much higher than what you would do in other forms.

If podcasts provide such huge benefits, then why do we still not see many brands using it in India till now?

It is still very early days for podcasts in India. Internationally, the brands are sitting on podcasts in large numbers. There are some structural factors that come into play in the Indian audio market, which has led to a delay.

Which categories of brands are more appropriate for the usage of podcasts?

It makes sense for most of the brands that have products which are applicable to the audience in broadcasting today. Today's podcast audience is very affluent, i.e. the audience who are influencers in their circles, the audience who display ad avoidance behaviour. Brands that have high lifetime customer values and products that are high-ticket items can reach this audience. As podcasting grows, we will see more and more consumer brands. Today, the brands in this space are mostly from technology, BFSI and entertainment.

You just mentioned that the audience who listen to podcasts are mostly affluent. Do you see this pattern changing over time?

It is already changing. The people listening to podcasts over the last four years are the people who understand what podcasts mean. Those are generally the people from the metros. As we go forward, we will see more and more people consuming this kind of content. As we start talking in more languages on podcasts, we’ll be able to reach out to more audience. The audience for podcasts is only going to increase. The only question here is that at what speed it would happen.

Is it difficult for you to persuade brands to include podcasts in their content plan?

It is a little bit of a challenge, but the speed at which they are getting on board is accelerating dramatically.

The talk in the town is that video content is the current big thing. So, why would the consumers consume audio content over video?

I don’t think one can compare both the mediums. Both are complementary mediums consumed at different points in time. One consumes video actively and audio inactively. There is a fundamental behavioural difference in the way both forms of content is consumed. For example, once I reach home after work, I won’t sit and listen to podcasts but watch videos in free time. But on my way home, I would listen to podcast.

If audio has so much potential then why hasn’t radio been able to make a mark in the content space?

Radio has a structural licensing problem. In Mumbai, Bangalore and Delhi, radio licenses went out for Rs 150-180 crore in the last auction. In addition to that, there is a cost of the annual license, cost of content creation, music licensing cost and hiring media people. Once, you incur all the cost, there is a regulation that you can’t do news and current affairs. If one is not allowed to do news and current affairs, then how can one run 24x7 content? Radio is doing fine with its limitations. There are very smart people working in radio but are hindered by the system they are working with. Podcast has the opportunity to create things that are outside this ecosystem.

Are there any brand integrations in your latest show ‘Cyrus Says’ with Cyrus Broacha?

Podcast is an interesting space. It falls between a pure ad and brand integration. For ‘Cyrus Says’, we are working with an audiobook brand called Storytel. In the show, we are creating little pieces where Cyrus talks about the books he has read and recommends. It’s not an ad, but at the same time, it is not a part of the show as well.

What works more on podcasts: advertising or branded content?

It is always a mix of both. It needs to be true to the voice of the show. It should be host-led, which creates trust in it. There are challenges in the branded content space. When you create branded content, you have to build the audience from scratch, instead of integrating with the show, which already has an existing audience. Brands need to have a tremendous amount of patience while we build that audience on a weekly basis. In my opinion, the best way the brands could work with us is by putting their messaging in our host voice with our host recommendation.

How much of the revenue you generate is from branded content and advertising?

We get 40% from advertising and 60% from branded content.

Podcast is at a very nascent stage in India. Whenever a brand comes on board, there is also a massive task of promoting it so that it reaches the right target audience. How should brands promote their podcast content?

Brands must understand their target audience they want to reach out through podcast. There needs to be a PR and advertising strategy around it. It should be just like a television show promotion where you let the people know that the show is out there. You reach your TG through radio, other podcast and OTT platforms.

What things are kept in mind when brands create content specific for podcasts?

Firstly, it has to be a good show and brand messaging should be the secondary aspect of it.

What marketing objectives can podcasts help achieve?

Podcast listeners are influencers in their own way. These listeners recommend things to others after listening to podcast content. Memorability is another benefit that brands can derive through podcasts. Ads on podcasts are typically longer than radio ads. One can tell a more complex story about his brand in a podcast ad.

Can brands fetch sales leads by doing content on podcasts?

It is difficult but possible. There is a long gestation period. It doesn’t work like Google ad word. Through podcast content, brands can get into the mind of the consumers. There is no call for action on podcasts immediately.

How can one measure the effectiveness of content on podcasts?

You can get to know how many people are listening to your content. But podcast content is not conversion-based activity. It is more about branding, affinity and creates awareness around your brand.

Would it be the right thing to say that 2019-2020 would be the year for podcasts in India? How prepared are brands to get in the game?

This is going to be a huge year. In India, right now, we are at such an early stage. We need half a decade for this to happen. The potential possibility of podcasts is millions of listeners for an episode. So, to get to that is going to take some time. It cannot happen in the course of a year. But it is going to be the biggest year since I started.