It’s reported that Amazon is moving into local-level advertising by acquiring podcast networks related to news and sports. Localized podcasting will complement their Echo device, allowing it to fill a niche currently served by radio.
Podcasting networks is a natural fit for Amazon and Echo.
It is also ideal for local search advertising revenue as well as being able to target audience demographics, particularly in a future where third party tracking cookies no longer exist.
Privacy Concerns and Third Party Tracking
Issues surrounding third party cookies are rapidly changing the way advertisers advertise to consumers. Browsers like FireFox already block the kind of third party cookies that allows advertisers to follow consumers around on the web.
The New York Times recently announced they are ending third party tracking cookies as of 2021.
Even Google is committed to blocking third party cookies by 2022.
By investing in locally targeted podcasting, Amazon does not need third party data to identify users on a future Amazon Echo podcasting network.
Local news and sports podcasts avoids privacy issues because listeners self-select themselves as specific audiences. A news site targets specific listeners in a geographic area. Sports shows can be said to target another demographic made up of males of certain ages.
With 3rd party tracking already on the way out, local based advertising may become a way to target specific audience demographics.
According to Axios:
- “Amazon sees a strategic advantage in podcasts by leveraging Alexa voice tech to help users discover personalized content.
- Sources say the company is using its venture arm tied to voice innovation, the Alexa Fund, to invest in local podcast companies.
- The company has evaluated investing in localized sports podcast companies like Blue Wire, a source familiar with the company’s plans tells Axios.
- It wants to explore short-form audio content that can be surfaced when users ask Alexa for information about topics like news and sports.”
Will Local Businesses Advertise on Amazon Podcast Network?
Podcasting is evolving into the niche that radio used to occupy. But will advertisers embrace local audiences on podcasting networks?
I asked local search expert Bill Hartzer (@bhartzer) and this is what he said:
“I have always been a fan of testing new advertising opportunities and creating them.
If Amazon does offer this option for local businesses like restaurants and supermarkets, then I recommend testing it – as long as you can see the analytics from it.
If that form of advertising works, then I would continue with it. If not, then it wouldn’t make sense to continue to spend money on something that you’re not getting any ROI from.
On a similar note, I listen to Pandora sometimes during the day, and I quite often I hear ads advertising local businesses in my area. This type of advertising works.”
Amazon is said to be investing in local podcasting networks. This may be a sign of where the advertising based industry is headed in order to better target consumers.
Read the report on Axios