This week, Amazon conducted its second-ever Upfronts presentation for advertisers, featuring NFL champions Jason and Travis Kelce. Interestingly, their appearance was not primarily focused on promoting NFL programming.
Although Amazon Prime has secured the media rights to NFL’s Thursday Night Football, and showcased various sports offerings including the upcoming NBA season, the Kelce brothers were highlighted due to the popularity of their podcast, “New Heights,” produced by Amazon’s Wondery.
Live sports have significantly become a focal point at Upfronts in recent years, with Finance Newso Corp., NBCUniversal, Disney, and Warner Bros. Discovery all emphasizing their sports content in presentations this week.
Despite the ongoing economic challenges, sports content is expected to continue being a driving force for advertiser engagement during this year’s Upfronts.
As viewership trends shift toward social media platforms on mobile and television, podcasts have gained traction, leading influencers, athletes, and television personalities to secure lucrative deals and amass large followings. Moreover, the quality of podcast video production is on the rise.
The growing focus on podcasts at Upfronts is affirming their value in the current media landscape. With consumers increasingly gravitating toward social media and streaming, advertisers are allocating more resources to these digital platforms over traditional television.
This pivot is drawing attention to podcasts like never before.
During an earnings call in April, Ted Sarandos, co-CEO of Netflix, noted, “We’re constantly evaluating various content types and creators. The distinction between podcasts and talk shows is fading.” He expressed interest in podcasts potentially joining Netflix’s offerings, highlighting the visual aspect that many podcasts are now embracing.
From Pod to Video
The transition from audio-only podcasts to video formats represents a new opportunity for media companies competing for advertising dollars.
Video podcasts are gaining traction on platforms like YouTube, which has become a dominant player in the media sphere.
Popularity is evident with podcasts like Alex Cooper’s “Call Her Daddy,” boasting nearly 1.3 million subscribers on YouTube. The Kelce brothers’ “New Heights” has attracted close to 2.6 million followers. Additionally, Joe Rogan’s interview with Donald Trump saw a staggering 58 million views on YouTube last year.
In Nielsen’s recent viewership tracking, the most-watched linear TV show last week garnered 8.2 million viewers, illustrating a stark contrast to YouTube’s cumulative viewer counts over time.
Neal Mohan, CEO of YouTube, remarked, “Podcasts are one of the most relevant formats shaping culture, and they’re thriving on our platform,” referencing the immense viewership of Rogan’s Trump interview. He also cited a study indicating YouTube as the preferred platform for podcasts.
YouTube is poised to present to advertisers on Wednesday evening.
While podcast producers benefit from sponsorship revenues embedded in their shows, YouTube typically handles traditional advertisements during commercial breaks. However, Wondery, noted for shows like “Dr. Death,” has been a “preferred partner” with YouTube, permitting it to manage its advertising inventory, according to Angie More, head of advertising at Wondery.
Since acquiring Wondery in 2020, Amazon has integrated the podcast company into its advertising ecosystem and leveraged video podcasts to develop free, ad-supported streaming channels, commonly referred to as FAST channels, allowing for additional advertising revenue beyond YouTube.
Incorporating a visual element into audio content opens up further avenues for advertising.
“You can opt for a standard TV spot or have full integration with the host, enabling discussions about the brand along with visual product placement,” More explained. “For example, if it’s Coca-Cola, the host can be shown drinking the product or be surrounded by associated branding. The possibilities are numerous, which is advantageous.”
Sports Talk
As the dialogue surrounding video podcasts intensifies during Upfronts, much of the enthusiasm is particularly linked to sports content.
Broadcast station owner Sinclair centered its recent Upfront presentation around expanding its podcast offerings, especially in the sports domain.
During the event held in New York City, executives elaborated on how brands and sponsors are seamlessly woven into the podcast conversation, using examples like showcasing a Nissan Armada or enjoying Wendy’s Frosty treats live on air.
Sinclair announced that it will be launching additional sports video podcasts following the success of shows like “The Triple Option” and “Throwbacks,” which feature former NFL players as hosts.
Podcasts concentrating on sports, whether highlighting analysis or hosted by ex-athletes, have resonated deeply with audiences, leading to lucrative partnerships.
Notably, the Kelce brothers’ agreement with Wondery is reportedly valued at over $100 million, extending over three years.
Wondery has also made headlines recently by securing a multi-year partnership with NBA icon LeBron James and former NBA star Steve Nash for the “Mind the Game” series, positioning it among the first to be available on Amazon’s Prime platform, alongside other platforms like YouTube.
Matt Schwimmer, CEO of Better Collective’s Playmaker HQ, shared, “The term podcast is evolving and now represents more of a digital content series, often prioritizing video.” His company produces sports podcasts such as “Roommates,” which features New York Knicks players Jalen Brunson and Josh Hart as co-hosts.
Increased interactions between media companies and podcast creators are resulting in “more substantive” conversations, according to Schwimmer.
“Many are starting to explore syndicating content from podcast-first entities, rather than creating their own,” he noted, while acknowledging that the budgets for such endeavors may still be developing.
Yet, there’s optimism that advertising budgets will grow in time.
Disclosure: Comcast’s NBCUniversal is the parent company of Finance Newso.
