Tag: Signs

Podcast companies see signs of an improved ad market in 2024

iHeartMedia, Spotify, SiriusXM and Acast reported year over year revenue growth in their podcast businesses during the fourth quarter of 2023. During their Q4 earnings calls, company executives noted signs of an improving advertising market heading into 2024.

Spotify and Acast, in particular, are expecting their podcast businesses to reach profitability for the first time in 2024. Execs at iHeart, Spotify and Acast told shareholders in fourth quarter earnings calls this month that they were seeing the ad market emerge from the slowdown in 2023, especially in the second half of last year.

“We expect 2024 to be back in growth mode, as we continue to see signs of improvement throughout our business and the broader advertising marketplace,” Rich Bressler, president, COO and CFO of iHeartMedia, said in the earnings call on Thursday.

Podcast revenue continues to grow, despite earlier headwinds

Podcast revenue at iHeart – which is generated from ads sold across its podcast network – was $132 million in Q4 2023, up 17% compared to Q4 2022 (and an increase from $96.6 million in Q4 2021). Full year podcast revenue was up 14% in 2023 year over year.

The company said this growth was driven primarily by increased advertiser demand. Podcasts made up 12% of iHeart’s overall revenue in Q4, up from 10% in the same quarter in 2022. Overall revenue at iHeart was $1 billion, down 5.2% year over year.

While Spotify doesn’t break out podcast revenue from its overall business, CEO Daniel Ek said in an earnings call on Feb. 6 that the company is getting closer to a profitable podcast business (he also said this during a third quarter earnings call in October). Spotify narrowed its loss to about $75 million in Q4 2023, compared to about $291 million in Q4 2022.

“I’m pleased to

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Expedia signs up as Netflix’s first global ad partner

Dive Brief:

  • Expedia is Netflix’s first global advertising partner to activate a multimarket campaign on the streamer’s ad-supported plan throughout 2024, according to details shared with Marketing Dive.
  • The travel-booking platform will run a variety of ads localized for language and culture in the U.S., Canada, Mexico, U.K., France, Germany, Australia, Japan and Brazil. Expedia will also be an alpha measurement partner in the U.K. and Brazil.
  • The partnership demonstrates why brands are betting on Netflix’s fledgling ad-supported tier, which provides global scale and the potential to meet targeted audiences where they are consuming content as linear TV consumption declines.

Dive Insight:

Netflix and Expedia are flexing their international muscle with a campaign aimed at the more than 23 million global monthly active users (MAUs) of the streamer’s ad-supported tier. 

“This first of its kind partnership will offer our engaged ad-supported members contextually relevant ads creatives, making the viewing experience even more enjoyable, while also making Netflix a global destination for our advertising partners,” said Amy Reinhard, who took over as president of advertising at Netflix in October, in a statement.

As part of the partnership, Netflix will begin airing localized creative in respective markets this month. The content is part of Expedia’s “Made to Travel” brand platform and was developed by an in-house creative team. Through the deal, Expedia will run a variety of ads, including 15-, 30- and 60-second spots, tailored to each country.

The first execution will launch in Japan, with Netflix airing “Two Step,” a 60-second anthem spot directed by Hiro Murai (“Atlanta,” “The Bear”). The commercial features a group of Japanese friends traveling to the U.S. to pursue their passion, line dancing.

“As global consumer habits rapidly evolve, we are always looking for innovative opportunities to showcase our brands and story-tell locally,” said Jon Gieselman,

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Earnings are showing signs of strain and are likely to get worse as economy slows

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WeCommerce Signs Definitive Agreement to Combine with Tiny

Combination Creates Profitable Technology Holding Company to be Named Tiny

  • The combination of Tiny and WeCommerce creates a well-capitalized technology holding company managed by a leadership team with a strong track record of building and acquiring profitable companies, driving organic growth, and generating free cash flow for future acquisitions.
  • The proforma newly combined business of WeCommerce and Tiny (which will retain the “Tiny” name) had approximate revenues of $149 million and adjusted EBITDA of $49.7 million for the period ending December 31, 2021. Each of the combined businesses continued to experience growth in calendar 2022, which results will be published in the second quarter of 2023 after the completion of their audited financial statements.
  • The proforma newly combined business will have a strong balance sheet with unaudited cash and debt of approximately $42 million and $130 million, respectively, at December 31, 2022.
  • The transaction represents substantial value for WeCommerce shareholders with an attributed value of $5.12 per share, representing a fully diluted equity value for WeCommerce of $220 million and for Tiny of $691 million, excluding Tiny’s existing interest in WeCommerce shares.
  • The $5.12 per share attributed value represents a proforma combined enterprise value for the two companies of $962 million, reflecting $911 million in total equity value, estimated proforma debt net of cash and investment assets of $51 million (cash of $42 million and investment assets of $37 million, reduced by debt of $130 million) at December 31, 2022, representing a 16.0 to 17.5 multiple of proforma estimated 2023 calendar year adjusted EBITDA of $55 million to $60 million.1
  • The $5.12 value attributed to the shares of WeCommerce represents a 161% premium to Friday’s closing price, and a 158% premium to the 30-day volume-weighted average trading price.
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