Spotify's investment in audiobooks and its impact on marketing strategies
Posted: Thu Dec 05, 2024 5:15 am
How you can take a step forward in this not-so-new channel and increase the results of your advertising
Cecilia Cury
Jun 23, 22 | 8 min read
Spotify investment in audiobooks
Reading time: 7 minutes
Since I started living alone, consuming different content in audio format has become more and more present in my routine: I listen to the latest news on a podcast that airs daily at 6 am, I usually prepare lunch while listening to true crime stories and I often listen to some guided meditation to help me fall asleep at night. All this after remote work: until then, the way to work was accompanied by several audiobooks.
Considering myself part of the audience of people who tend to prefer to consume content through their headphones, I was surprised when, last week, Spotify executives announced to their investors that the company's next bet is on audiobooks , and that they would become the new pillar of the business.
Spotify CEO Daniel Esk said : “We think audiobooks, in their many different forms, are going to be a huge opportunity.” Following last year’s announcement of its acquisition of Findaway , an audiobook platform that allows authors to create, distribute, and monetize their work, the company’s plan has become more noticeable.
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Why Spotify is investing in audiobooks
It’s not hard to see why Spotify has turned its list of slovakia consumer email efforts in this new direction. In 2010, data from the Audio Publishers Association noted that 6,200 audiobooks were produced; by 2015, that number was close to 36,000; but just five years later, in 2020, that figure has nearly doubled: 71,500 new audiobooks produced.
According to Grand View Research , the global audiobook market is expected to expand at a CAGR of 26.4% from 2022 to 2030 to reach USD $35.05 billion by 2030. Sounds good, right?
This is probably for a social reason: with Generation Z and Millennials as its main consumers, the audiobook market is dealing directly with a young, busy audience that has no time to waste.
Born and raised with the technological advances of recent decades, these young people are accustomed to performing several activities at the same time, often sharing the focus of manual tasks with something that requires more concentration.
For many representatives of this generation, multitasking optimizes time and makes them more productive: that is why so many young people take the opportunity to listen to an audiobook or a podcast while they wash the dishes, hang out the laundry, walk the dog or clean the house.
Unlike video format, you don't have to stare at the screen to stay focused or fully understand the topic.
So it’s no surprise that research from the Audio Publishers Association shows that 54% of audiobook listeners are under the age of 45, and that among Americans ages 13 and older, audiobook consumption has grown 60% since 2017.
And according to Grand Review Research , “The growing popularity of audiobooks among the younger generation is predicted to drive market growth as these individuals are likely to encourage their families and inspire their peers, resulting in a larger pool of potential customers.”
But if on the one hand the advance of technology has allowed for an increase in sales of audiobooks - since consumers can listen to their favourite books on their mobile phones and no longer store them on CDs and cassettes - the interest in "retro" products and content also explains the trend of the audio format.
According to Spotify’s Culture Next Report 2022 , over 73% of Gen Z respondents said they like retro products or content, and we can say that the audio-centric content experience is nothing more than the return of the radio era, now, with wireless headphones and no bad reception noise.
The COVID-19 pandemic also played a major role in the audiobook market: data from the same survey show that since the lockdown - where many people had to adapt their work routines to the home office - there has been a considerable increase in the consumption of podcasts and audiobooks, while many users were looking for a "screen-free" moment and different ways to relax at home.
In a market where free time is disputed by different consumption channels and different streaming services, I would dare say that Spotify is betting heavily on our attention: faced with a generation that is perhaps visually fatigued by so many series, films and videos, the music + podcasts + audiobooks combo seems like a good path for the company.
How audiobooks can be a good marketing channel
With all the growth potential of the audio content industry, what are the main challenges for advertising in such a specific consumption format?
The advantages seem to be clearer: considering everything that has been seen so far in the audiobook industry, Spotify’s own CEO said: “What our successes in music and podcasts have clearly demonstrated is that we have built a powerful machine and a solid infrastructure that allows us to pursue new verticals.”
This seems to be a demonstration of how large the audience for available audiobooks is and how much advertising can be reached through the platform. The company hopes to reach a global audience of over 422 million users by entering the audiobook industry.
But in addition to the channel and offers with new subscriptions, book previews, different access plans to specific books, and even Spotify freemium subscription options, it is essential to analyze how the audiobook format and its distribution impacts companies and marketers, advertisers and Marketing Agencies.
Find your audio audience
First, it's important to understand that the audiobook audience is fundamentally different from the print book audience, and Spotify knows this better than anyone.
It is not about “updating” a type of user consumption, but rather learning that they are different formats, with similar purposes, which is why companies that invest in personalized and specific Audio Marketing strategies tend to find good (and creative) growth opportunities.
The next step to leverage this channel assertively is nothing new: knowing your persona! As Ardath Albee said : “A marketing persona is a summary of a key segment of your audience. For Content Marketing purposes, you need personas that will deliver truly relevant and useful content to your audience.”
Therefore, the person will help you determine the types of content you will create, what tone to use, what your growth strategy will be, and, above all, whether you will invest in creating audiobooks or advertising your services or products through audio ads.
So use the persona to identify your potential customer's journey or purchasing journey and understand the particularities of the segment of people who consume content in audio format. With that in hand, you can find possible investment niches: podcasts and audiobooks that can relate to your product or service.
Cecilia Cury
Jun 23, 22 | 8 min read
Spotify investment in audiobooks
Reading time: 7 minutes
Since I started living alone, consuming different content in audio format has become more and more present in my routine: I listen to the latest news on a podcast that airs daily at 6 am, I usually prepare lunch while listening to true crime stories and I often listen to some guided meditation to help me fall asleep at night. All this after remote work: until then, the way to work was accompanied by several audiobooks.
Considering myself part of the audience of people who tend to prefer to consume content through their headphones, I was surprised when, last week, Spotify executives announced to their investors that the company's next bet is on audiobooks , and that they would become the new pillar of the business.
Spotify CEO Daniel Esk said : “We think audiobooks, in their many different forms, are going to be a huge opportunity.” Following last year’s announcement of its acquisition of Findaway , an audiobook platform that allows authors to create, distribute, and monetize their work, the company’s plan has become more noticeable.
Follow us on the Rock Content LinkedIn page
Why Spotify is investing in audiobooks
It’s not hard to see why Spotify has turned its list of slovakia consumer email efforts in this new direction. In 2010, data from the Audio Publishers Association noted that 6,200 audiobooks were produced; by 2015, that number was close to 36,000; but just five years later, in 2020, that figure has nearly doubled: 71,500 new audiobooks produced.
According to Grand View Research , the global audiobook market is expected to expand at a CAGR of 26.4% from 2022 to 2030 to reach USD $35.05 billion by 2030. Sounds good, right?
This is probably for a social reason: with Generation Z and Millennials as its main consumers, the audiobook market is dealing directly with a young, busy audience that has no time to waste.
Born and raised with the technological advances of recent decades, these young people are accustomed to performing several activities at the same time, often sharing the focus of manual tasks with something that requires more concentration.
For many representatives of this generation, multitasking optimizes time and makes them more productive: that is why so many young people take the opportunity to listen to an audiobook or a podcast while they wash the dishes, hang out the laundry, walk the dog or clean the house.
Unlike video format, you don't have to stare at the screen to stay focused or fully understand the topic.
So it’s no surprise that research from the Audio Publishers Association shows that 54% of audiobook listeners are under the age of 45, and that among Americans ages 13 and older, audiobook consumption has grown 60% since 2017.
And according to Grand Review Research , “The growing popularity of audiobooks among the younger generation is predicted to drive market growth as these individuals are likely to encourage their families and inspire their peers, resulting in a larger pool of potential customers.”
But if on the one hand the advance of technology has allowed for an increase in sales of audiobooks - since consumers can listen to their favourite books on their mobile phones and no longer store them on CDs and cassettes - the interest in "retro" products and content also explains the trend of the audio format.
According to Spotify’s Culture Next Report 2022 , over 73% of Gen Z respondents said they like retro products or content, and we can say that the audio-centric content experience is nothing more than the return of the radio era, now, with wireless headphones and no bad reception noise.
The COVID-19 pandemic also played a major role in the audiobook market: data from the same survey show that since the lockdown - where many people had to adapt their work routines to the home office - there has been a considerable increase in the consumption of podcasts and audiobooks, while many users were looking for a "screen-free" moment and different ways to relax at home.
In a market where free time is disputed by different consumption channels and different streaming services, I would dare say that Spotify is betting heavily on our attention: faced with a generation that is perhaps visually fatigued by so many series, films and videos, the music + podcasts + audiobooks combo seems like a good path for the company.
How audiobooks can be a good marketing channel
With all the growth potential of the audio content industry, what are the main challenges for advertising in such a specific consumption format?
The advantages seem to be clearer: considering everything that has been seen so far in the audiobook industry, Spotify’s own CEO said: “What our successes in music and podcasts have clearly demonstrated is that we have built a powerful machine and a solid infrastructure that allows us to pursue new verticals.”
This seems to be a demonstration of how large the audience for available audiobooks is and how much advertising can be reached through the platform. The company hopes to reach a global audience of over 422 million users by entering the audiobook industry.
But in addition to the channel and offers with new subscriptions, book previews, different access plans to specific books, and even Spotify freemium subscription options, it is essential to analyze how the audiobook format and its distribution impacts companies and marketers, advertisers and Marketing Agencies.
Find your audio audience
First, it's important to understand that the audiobook audience is fundamentally different from the print book audience, and Spotify knows this better than anyone.
It is not about “updating” a type of user consumption, but rather learning that they are different formats, with similar purposes, which is why companies that invest in personalized and specific Audio Marketing strategies tend to find good (and creative) growth opportunities.
The next step to leverage this channel assertively is nothing new: knowing your persona! As Ardath Albee said : “A marketing persona is a summary of a key segment of your audience. For Content Marketing purposes, you need personas that will deliver truly relevant and useful content to your audience.”
Therefore, the person will help you determine the types of content you will create, what tone to use, what your growth strategy will be, and, above all, whether you will invest in creating audiobooks or advertising your services or products through audio ads.
So use the persona to identify your potential customer's journey or purchasing journey and understand the particularities of the segment of people who consume content in audio format. With that in hand, you can find possible investment niches: podcasts and audiobooks that can relate to your product or service.