Trust, AI and the Future of Podcast Advertising | Mike Kadin, RedCircle #683

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Trust, AI and the Future of Podcast Advertising | Mike Kadin, RedCircle #683

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Podcasting has one advantage that much of digital media struggles to maintain: trust. In Episode #683 of the New Media Show, Rob Greenlee talks with Mike Kadin, CEO and co-founder of RedCircle. What does that trust mean for podcast advertising as AI, video, HLS, YouTube, Spotify, and changing audience behavior reshape the business? Long-form shows create a different relationship between creators and audiences than short-form social content. That relationship has always been one of the reasons host-read podcast advertising can work so well. But what happens when AI can recreate the host’s voice? Mike makes an important distinction. The value of a host-read ad is not simply hearing a familiar voice. It comes from the host’s language, personality, experience, humor, and actual judgment about the product. RedCircle does not use AI-generated versions of creators to perform host-read advertising. Mike believes cloning the host’s voice without the actual human endorsement could undermine the very trust that makes the advertising valuable. Authentic Host Reads Still Matter Rob and Mike talk about the difference between reading advertising copy and genuinely recommending something a creator has used. RedCircle has seen similar shows, with similar audience sizes, run by the same advertiser and using the same talking points, produce very different results. One of the biggest differences can be the quality and believability of the host read. That also puts responsibility on creators to work with products they can credibly talk about. Mike explains that RedCircle will sometimes hear from a creator who tried a sponsor’s product and did not like it. Rather than force an endorsement, the company can take that feedback back to the advertiser and cancel the spot. That kind of process helps protect the relationship between the creator and audience. Using AI to Find Better Brand Matches Mike also talks about a newer RedCircle capability called Show IQ. Over the years of running campaigns, RedCircle has accumulated information on its creators’ interests and brand affinities, as well as historical campaign performance. Show IQ uses that information to help identify creators who may be a natural fit for a particular advertiser. This is an example of AI being used behind the scenes to improve the match rather than replacing the human doing the endorsement. The goal is to put advertisers with creators who can actually speak credibly about their products. Spotify, YouTube and Control of Podcast Monetization The conversation shifts to the growing influence of large consumption platforms. Spotify is experimenting with ways for listeners to move past advertising more easily. YouTube has already offered similar jump-ahead behavior around portions of videos that viewers commonly skip. Mike does not see this as some unexpected attack on podcasting. Spotify and YouTube have built massive distribution platforms and naturally want to control more of the economics that happen inside them. For creators, diversification becomes increasingly important. A creator can use YouTube, Spotify, Apple Podcasts, and other platforms for distribution, but should also keep building direct relationships through websites, newsletters, subscriptions, and communities. No single distribution platform can be expected to always put the creator’s interests first. RedCircle Is Moving Into Video RedCircle has also started expanding beyond its traditional audio focus. Creators can now upload video through RedCircle and send it to YouTube, an expansion of its earlier audio-to-YouTube tools. Mike says YouTube was the obvious first priority because that is where the largest existing video audience is today. RedCircle is also watching Spotify video, Apple Podcasts video, and HLS as podcasting becomes increasingly multi-format. The advertising systems will eventually need to evolve along with the content. HLS Creates New Advertising Questions A significant part of the conversation focuses on HLS and Apple’s new video-podcast approach in this episode. Podcast advertising has traditionally been built around audio downloads. The video introduces a much more complex environment. An Apple Podcasts episode may still automatically download its audio before the listener ever presses play. If that listener later watches the video version, the advertising decision may already have been made. That makes traditional real-time programmatic video advertising harder to apply to podcast video. For now, audio advertising may become a common advertising format, whether someone is listening or watching. That works technically, but it is not necessarily the best video experience. Rob and Mike discuss the need for a new type of podcast video advertising that works whether someone hears the ad, watches it, or moves between both experiences. Audio and Video Are Converging, But Not Cleanly Rob raises a question he is dealing with directly on the New ...

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