Early days of the MENA Podcast Ecosystem

From the beginning, we at Sowt Media | صوت have always taken a long-term and strategic approach. When we launched in 2016, our goal was to build a sustainable and growing company. Despite challenges, the podcast industry experienced significant advancements, including our acquisition of Dubai-based Finyal Studios. 

Despite rumors of podcasting's decline, 2022 was a successful year for Sowt. While certain macroeconomic factors may present challenges, the podcast ecosystem is stronger than ever. We believe that we are still in the early stages of podcasting's growth potential.

More and more brands, commercial partners, cultural institutions, and intellectual partners are recognizing the significance of audio and podcasts and are collaborating with us to produce high quality digital audio content.

At Sowt our audience grew over 60% in 2022. More crucially, we published fewer episodes yet reached far larger numbers of people. Our downloads per episode lept 76% and our numbers grew significantly each quarter. Our revenue also grew around 40% and we reached a total of 24 full time staff and are looking to hire more capacity. 

Podcast listenership has been increasing tremendously in the region in the past few years. The latest numbers shows there are over 5.1M regular podcast listeners in Saudi Arabia and 1.3M in the UAE. Audiences continued to engage on podcasts as the pandemic restrictions eased and we started venture out and traveling more.

We view the podcast ecosystem as consisting of three components: technology, content, and monetization. While there are many players working in each area globally, locally in MENA, the majority of efforts are focused on content and monetization, with fewer companies working on technological advancements.

In 2022, monetization opportunities for podcasts increased significantly. We saw growth in programmatic advertising, sponsored content, and white-label content.

Our subscription revenue increased 135% (although the numbers are smaller, they aren’t insignificant), branded revenue increased 45% and advertising jumped 220%. More and more brands are recognizing the value of podcast advertising and we are excited to work with several brands that understand the medium and share our passion for content. 

Our brand-focused studio, Sowt Studios, experienced significant growth in 2022 and collaborated with new partners to achieve their goals.

Brands and advertisers are starting to realize the value of impressions on podcasts. Podcasts are an ideal form of direct response marketing, especially in economic downturns, when this type of marketing becomes more important.

In 2022, we expanded our reach and revenue opportunities through the acquisition of Finyal. As the market evolves, we anticipate more mergers and acquisitions as companies realign their objectives. In 2023, we plan to bring our brands under the Sowt brand and offer them under one subscription service, which continues to grow and provide value for our loyal listeners.

Podcasts and media companies will not be immune to the realignments happening in the market. Some businesses may struggle due to poor leadership or unsustainable business models. The "grow at all costs" mentality will shift as investors and companies look to conserve cash and invest in more profitable ventures.

As we settle into 2023, we recognize that there will be more challenges ahead. However, by maintaining a long-term perspective, we are confident that we can continue to thrive and succeed.