Monetizing Podcasts and Newsletters - Chris Best of Substack and Jonathan Gill of Backtracks

TL;DR

Substack CEO and Backtracks CEO discuss the potential of paid content versus advertising in the podcasting industry and the importance of finding the right balance and monetization strategies for creators and listeners.

Transcript

so Chris what do you do I'm the CEO of sub stack we make it simple to start a paid newsletter and also you can put audio in it now in Jonathan I'm Jonathan Gill co-founder and CEO of backtracks we help audio content creators know and grow their audience and in the revenue and you guys have two different strategies paid versus advertising yes what's... Read More

Key Insights

• 🎙️ Podcasts vs Advertising: The CEOs of Substack and Backtracks discuss the strategies of paid subscriptions and ad-supported sponsorship in the podcasting market. There is a divided viewpoint on whether podcasts should be subscription-based or supported by advertising, with potential for a blend of both.
• 🇨🇳 Chinese Market: The podcasting market in China is much larger and more favorable towards paid content compared to the US market. Chinese audiences are used to paying for audio content, particularly educational content, and the ecosystem for paid podcasting is well-established.
• 🌐 Future of Media: The CEOs believe that there is a market failure in the current media landscape, where content creators are undervalued. They argue that people would be willing to pay more for high-quality content, whether it's in the form of newsletters, podcasts, videos, or other types of media.
• 💡 Personal Newsletters as a Replacement for Social Networks: Personal newsletters have the potential to replace social networks like Facebook as a means of consuming news and intellectual content. The direct connection between creators and subscribers, as well as the ability to share content easily, make newsletters an attractive alternative.
• 📈 Growth Strategies: To grow a newsletter, creators should focus on creating high-quality, shareable content that resonates with readers. Implementing referral programs and offering incentives to subscribers to share content can help in expanding the audience.
• 🏢 Startups and Podcast Advertising: While podcast advertising can be effective, startups should have a clear understanding of why they want to advertise through podcasts and how they will measure the return on investment (ROI) and customer acquisition cost (CAC). It is crucial to have a good thesis and strategy behind podcast advertising.
• 🎙️ Starting a Podcast or a Newsletter: For podcasts, it is important to know why you want to create the podcast and what topics you will cover. Consistency and incorporating feedback are the keys to success. Starting a newsletter is relatively simple, with the initial focus being on creating content and getting people to subscribe. Consistency and quality are essential factors in growing a newsletter audience.
• 🔖 Importance of Content Quality: Quality content is crucial in both podcasts and newsletters. Investing time in producing well-designed, engaging content that resonates with the target audience is essential for growth and building a strong subscriber base.
• 📊 Measuring Success: Success in newsletters can be measured by consistent delivery and subscribers regularly engaging with the content. Newsletters that attract a dedicated audience can transition into paid subscriptions. Podcast success can be determined based on factors like download metrics, engagement, and impact on brand awareness.

Questions & Answers

Q: Are podcast advertisers overpaying or underpaying for podcast ads?

The answer to this question depends on various factors such as the particular content, the advertiser, and the measurement metrics. While some companies may find podcast ads to be effective and worth the investment, others may struggle with measurement and engagement. The podcasting industry still has room for growth and improvement in terms of metrics and ad effectiveness.

Q: How can start-ups calculate the ROI and CAC for podcast advertising?

The ROI and CAC (customer acquisition cost) for podcast advertising can be challenging to calculate due to measurement limitations in the industry. Start-ups can have a direct response system in place, such as using offer codes, to track the effectiveness of their podcast ads. Additionally, they can analyze the overall conversion and growth of their company to determine the impact of podcast advertising on their business.

Q: How can individuals and start-ups grow their podcast audience or newsletter subscribers?

To grow a podcast audience or newsletter subscribers, it is important to create high-quality content that resonates with the target audience. Providing easily shareable content through various channels, such as newsletters or social media, can help reach a wider audience. Referral programs, where existing listeners or subscribers can invite others, can also be effective in expanding the reach of the content.

Q: What advice do you have for those starting a podcast or newsletter?

For newsletters, it is important to start creating content immediately and make it easily shareable to gain traction. Creating a consistent schedule and offering valuable content can help retain and expand the subscriber base. For podcasts, understanding the purpose and topics of the show is crucial, as it will determine the frequency and style of episodes. Starting with a few practice episodes and continuously improving based on feedback is key to success. Consistency and adaptation are essential in both cases.

Summary & Key Takeaways

• Substack CEO believes that paid content is the way forward for podcasts, as it adds value and can support a larger audio market.

• Backtracks CEO highlights the current popularity of ad-supported podcasting and the importance of blending advertising and paid content for a healthy ecosystem.

• The CEOs also discuss the potential of educational content and the Chinese market's willingness to pay for audio content.