China's 'ear economy' gains growing popularity, unleashes commercial potential

China's online audio industry, also referred to as the "ear economy," is experiencing increasing popularity and showing promising prospects for commercial success.

In particular, podcasts, a key form of audio content within the online audio sector, have gained significant favor in recent years.

Data suggests that in 2023, the number of Chinese-language podcasts grew sixfold compared to 2020, steadily transitioning from a niche medium into a mainstream content format in the country's online audio landscape.

(Photo/CCTV.com)

A survey of over 2,000 podcast listeners found that the majority of the audience comes from first-tier and new first-tier cities, with a substantial portion comprising workers and students.

Among the core age group of 18-40 years, more than 80 percent hold at least a bachelor's degree, and over 70 percent listen to podcasts for more than 30 minutes per day, according to the survey.

Chen Jialei, a post-2000s college student in China, has been listening to podcasts since his middle school years. With the rise of various internet podcast platforms in recent years, he has developed a habit of listening to podcasts every day.

Whether commuting, cycling, or winding down before bed, podcasts have become an essential part of his daily routine, filling the gaps in his fragmented time, according to Chen.

Podcasts cover a broad range of topics, including business, finance, culture, technology, storytelling, and more.

Like Chen, many young people enjoy podcasts for relaxation, learning, and emotional support.

Compared to video production, podcasting is relatively simple and accessible, which has led to an influx of creators from various industries.

Industry experts noted that as the numbers of podcast creators and listeners grow, the commercial potential of podcasts is increasingly being unlocked, with paid content emerging as a significant growth area.

Data from an audio platform indicated that the listeners' willingness to pay for podcasts has notably increased, with 45.9 percent of users on the platform purchasing paid podcast episodes in the past year.

Huang Xiao, a post-90s podcast host in China, is one of the podcasters who have reaped the rewards of this growing trend.

In 2019, Huang ventured into the world of podcasts with two friends, aiming to find a side job. Their initial endeavor has since evolved into a full-time operation with a team of nine.

Over the years, Huang's team has produced more than 2,000 episodes and garnered nearly 500,000 followers across multiple platforms, according to Huang, who noted that by offering paid content, they've successfully monetized their podcasts.

As this specific type of audio content flourishes, the commercial value of podcasts has drawn increasing attention.

In addition to paid subscriptions, podcast commercialization now includes advertising, brand-related podcasts, and other innovative business models.

In recent years, more and more brands are collaborating with podcast platforms and creators, exploring a variety of commercial partnerships for content marketing.

Compared to other channels, podcasting allows for a more targeted reach, pointed out Liang Yawei, an employee of an audio technology company based in east China's Shanghai.

When data from platforms, the unique style of individual hosts, content, as well as other factors form synergy, brands can deliver highly personalized messages to their target audiences, Liang explained.

Zhang Yi, chief analyst at China-based business analysis firm iiMedia Research, predicted that professional, knowledge-based, personalized and differentiated content will be a prerequisite for podcast platforms to attract a wider audience.

Improving production efficiency, diversifying revenue models, and innovating content creation, among other aspects, remain essential areas of focus for the industry’s continued growth, Zhang noted.