Kugel und Niere: What's The State Of Podcast Funding?

Ms. Bühler, how has the podcast market changed in recent years?

Anna Bühler: The market has become much more professional in recent years. We now know better how to reach the right target group with advertising. Technical innovations have also made advertising easier. However, the global crises of our time have also left their mark here. Since the Russian attack on Ukraine, the advertising market has become more difficult. Marketing budgets are being cut first and we are also feeling the effects.

Has the podcast­-boom reached its peak?

Bühler: I hope not. New and high-quality formats are appearing all the time. That gives me hope that the boom will continue and that even more people will integrate podcasts into their everyday lives. Podcasts are one of the best ways to tell stories. I don't think we've exhausted the potential yet.

How do you finance your podcasts?

Bühler: Firstly, through commissioned productions. We negotiate the conditions with partners such as ZDF, Spotify etc. and receive a fixed amount for our work. This usually includes research, production, post-production and much more. However, the rights to the finished product remain with the partner company. This is called a “total buyout”. We use all available financing channels for our own productions. Advertising financing plays a major role, but also merchandising, live tours or community financing via Patreon or Steady. It's not wrong to say that podcasts are a social medium. You need good community management that manages to get listeners on board. We have succeeded in doing this with our podcast “Darwin gefällt das”. Through the constant exchange with our listeners, we have learned that they want live tours, shirts, etc. They are also willing to pay for their favorite podcast. In return, they receive additional services that go beyond the podcast episode itself, such as exclusive bonus episodes, commercial-free podcast episodes or a mention of their name in the credits.

How high is the acceptance of advertising in podcasts?

Bühler: Advertising in podcasts is still manageable. They usually last between 30 seconds and a minute and a half. No comparison to the commercial breaks on TV or radio. Nevertheless, listeners first have to get used to advertising in podcasts. That takes time. There are two different types of advertising in podcasts: Third-party voice ads and host-read ads. The latter are more personal and may be less annoying. Of course, as a listener, you would prefer not to have any advertising. But I think it's tolerable to that extent.

How do you ensure that journalistic integrity is not lost through advertising?

Bühler: We choose very carefully which advertising offers we accept for our own productions and make sure that the advertising product fits in with the podcast. If we don't want to advertise certain topics or brands, we don't do so. It's also important to us that we test the things we later advertise beforehand – so that we really know what we're talking about.