The Truth About Podcast Ads, Life After the Military, and Scott’s London Tips

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0:01:50 Welcome to Office Hours of Prop G.
0:01:52 This is the part of the show where we answer your questions about business,
0:01:54 big tech, entrepreneurship, and whatever else is on your mind.
0:01:57 If you’d like to submit a question for next time,
0:01:59 you can send a voice recording to officehoursofpropgmedia.com.
0:02:01 Again, that’s officehoursofpropgmedia.com.
0:02:04 Or post your question to the Scott Galloway subreddit,
0:02:07 and we just might feature it in our next episode.
0:02:07 First question.
0:02:14 Our first question comes from user ImpressiveDetail407 on Reddit.
0:02:15 They say,
0:02:17 Scott, regarding advertising revenue growth,
0:02:20 you often document the valuable and elusive audiences reached via podcast.
0:02:24 But where is the innovation and personalization in podcast advertising?
0:02:27 I fast forward past 99% of audio ads
0:02:30 while consuming about 15 hours of podcast programming per week.
0:02:33 Why is a 90-plus-year-old radio ad model
0:02:36 with hosts reading sponsorship blurbs and branded content
0:02:38 being attached like a parasite to the shows we love?
0:02:43 Okay, so I believe that podcast revenue is,
0:02:45 or advertising is growing faster than any ad-supported medium.
0:02:52 The average CNN viewer is a 62, 64-year-old white female.
0:02:53 She is smart.
0:02:56 She already knows who she’s voting for.
0:03:00 She’s not spending money on stupid shit like $8 Frappuccinos
0:03:05 or Panerai watches or Van Cleef and Arpel.
0:03:06 She’s past her mating years.
0:03:08 She’s not trying to impress anybody.
0:03:11 She’s not going to buy $1,200 Manola Blahniks, right?
0:03:14 The average podcast listener,
0:03:16 if you were to distill it down to one person,
0:03:20 is a 34-year-old kind of ethnically ambiguous male.
0:03:21 That dude is stupid.
0:03:23 What do I mean by stupid?
0:03:24 He’s in the midst of his mating years
0:03:28 and will spend money on irrational high-margin things
0:03:31 that signal his value as a mate.
0:03:35 A cool new Audi, a Panerai watch,
0:03:39 James Purse t-shirts that cost $80 when it’s $3 a cotton
0:03:43 because he is still trying to express himself to potential mates
0:03:44 and impressive friends.
0:03:47 He’s coming into his prime income earning years.
0:03:48 He’s enjoying spending money.
0:03:51 Also, he’s up for grabs politically.
0:03:54 People that age, mostly, especially males,
0:03:57 mostly vote based on who they think is going to be best for them economically.
0:04:02 And on that issue, it flips back and forth between Democrats and Republicans.
0:04:03 So what’s happening?
0:04:06 Money is coming out of the cable news network
0:04:07 and it’s going into podcasts.
0:04:11 And there’s still very few places you can reach a young man with advertising
0:04:14 because most young men are on Spotify and Netflix
0:04:15 and avoiding advertising altogether.
0:04:19 Now, in terms of the technology, you’re right.
0:04:21 People can skip through ads and a lot do.
0:04:24 But the difference or the innovation, if you will,
0:04:26 with podcasting versus traditional advertising
0:04:31 is Fareed Zakaria or Thomas Friedman on CNN
0:04:33 and the New York Times, respectively,
0:04:35 they refuse to read ads.
0:04:38 And their host institution, CNN and the New York Times,
0:04:42 think it is journalistic malpractice for the journalist to read an ad.
0:04:44 It’s unseemly.
0:04:45 It’s not pure.
0:04:46 Whatever.
0:04:49 The reality is, if you’re used to my voice and you’re here,
0:04:52 it means you sort of trust me, sort of like me.
0:04:55 And so when I tell you that I love Amex,
0:04:57 I love Apple products,
0:04:58 I love Viore,
0:05:03 I love that everyone in my company uses Adobe products
0:05:05 for all of our creative work.
0:05:07 I mean, it’s just that I wear on.
0:05:11 I mean, I can go through the list of things that I do, right?
0:05:14 That I, you know, my, all my cars my whole life,
0:05:15 since I got some money,
0:05:19 were either Range Rovers or Mercedes or BMWs.
0:05:20 God, I sound like a douchebag.
0:05:24 Anyways, you know, the airlines I fly, everything.
0:05:26 If I can speak to it credibly,
0:05:30 if I can say, no, I actually do love Warby Parker glasses,
0:05:31 which is what I’m wearing now, right?
0:05:36 Then the brand loves that because it gives them,
0:05:38 it’s just much more authentic.
0:05:39 It’s much more real.
0:05:40 It’s much more impactful.
0:05:42 So the innovation is host readovers.
0:05:45 I don’t know if the targeting,
0:05:47 I think the targeting is probably a little bit better.
0:05:48 You just get different ads in different regions.
0:05:51 So I think the ad insertion is probably a little bit better,
0:05:52 although I bet TV is now doing that.
0:05:55 What I think the real innovation is,
0:05:56 is one, the host readover,
0:06:00 and two, the ads and the content are more impactful
0:06:01 because it’s more intimate.
0:06:02 What do I mean?
0:06:04 When the TV’s on, oftentimes it’s in the background.
0:06:06 You start seeing an ad for, you know,
0:06:08 a pharmaceutical to get rid of your toe fungus.
0:06:10 You’re literally just screen it out.
0:06:12 If I’m in your ears
0:06:13 and you’re listening to my voice right now,
0:06:15 you feel as if we have a relationship
0:06:17 and you feel as if we’re friends
0:06:18 and there’s more trust.
0:06:21 So, and then the seamless handover to the host readover,
0:06:23 the barriers don’t come up as quickly.
0:06:24 There’s just more trust.
0:06:25 There’s more penetration.
0:06:27 The beach has already softened.
0:06:29 Your wet matter is already sort of open to listening about,
0:06:33 you know, what kind of products I like,
0:06:36 what kind of supplements I take, et cetera.
0:06:38 You know, that I, you know,
0:06:41 that I like T-Mobile or whatever it is, right?
0:06:43 Or that I like Mint Mobile, right?
0:06:48 And I’m trying to think of the advertisers that I’ve used.
0:06:51 My point is, it is, there is innovation there.
0:06:53 And more importantly, we are,
0:06:54 people are actually listening to our ads.
0:06:55 It’s our audience.
0:06:57 And increasingly, it’s our reach.
0:07:01 So, if you add up the audio downloads
0:07:04 and the views on YouTube of this pod,
0:07:06 it’ll be about 200,000.
0:07:09 The average CNN show, I think it’s 160 or 180.
0:07:11 So, we’re actually getting the same reach now as CNN
0:07:13 with a more attractive audience,
0:07:15 with a more intimate format
0:07:17 where they’re actually listening and tuning in,
0:07:20 which means $47 CPMs versus 15.
0:07:22 Is there room for improvement in targeting?
0:07:23 Absolutely.
0:07:27 But right now, the innovation around podcasting is simple.
0:07:29 People are actually tuning in.
0:07:30 They will listen to the ads.
0:07:32 The audience is much more appealing.
0:07:35 And the format of host readovers
0:07:38 and it being a much more intimate format
0:07:40 make the ads more resonant.
0:07:41 Thanks for the question.
0:07:43 I think this stuff is super interesting.
0:07:44 Thank you.
0:07:47 Question two, Alex from D.C.
0:07:49 Hey, Prof. G.
0:07:52 My name’s Alex and I’m located in the D.C. area.
0:07:53 I love what you do.
0:07:55 And thank you so much for the podcast
0:07:57 that you and the entire crew put together.
0:07:59 They’re incredibly insightful
0:08:01 and have helped mold my personal
0:08:04 and professional experiences and perspectives.
0:08:06 So my question to you,
0:08:09 I’m prior military and recently got out.
0:08:10 When I was in the military,
0:08:12 I didn’t love the bureaucracy of it,
0:08:14 but I love the people that I was surrounded with.
0:08:15 The old adage is,
0:08:18 you love the clowns, but you hate the circus.
0:08:21 There, I felt like there was a deep sense of community
0:08:23 and that there was a goal behind everything
0:08:23 that I was doing.
0:08:26 If I wasn’t doing the mission actively,
0:08:28 then I was helping mold the young Marines
0:08:30 that I worked with into better Marines
0:08:31 and better people.
0:08:33 Transitioning into the private sector,
0:08:35 I found it very difficult
0:08:38 to have that same sense of mission and purpose.
0:08:41 Maybe it’s because I don’t really love where I work,
0:08:43 but what advice would you have for somebody
0:08:47 that misses the identity and the community
0:08:48 that they want to be involved with?
0:08:50 How can I be more involved in work
0:08:53 and how can I build a better sense of community
0:08:54 so when I come into work,
0:08:56 I feel like I belong here?
0:08:58 Anyways, thank you so much for your time
0:09:00 and I hope that this question is insightful.
0:09:04 So, it sounds passe or cliche
0:09:06 when people say thank you for your service,
0:09:09 but I really do mean thank you for your service.
0:09:10 One of my big regrets is not serving.
0:09:12 My father took me to Annapolis.
0:09:13 He wanted me to go in the Navy,
0:09:15 mostly such that he wouldn’t have to pay for my schooling.
0:09:17 And it was one of those moments
0:09:20 where I realized we’re different than anyone else.
0:09:22 I didn’t have the grades to get in
0:09:24 and then someone said you needed to get a letter
0:09:25 from your senator.
0:09:27 And I’m like, I don’t even know
0:09:28 who the senators are in California.
0:09:30 And I just felt like an imposter there with my dad.
0:09:32 I was never going to get into Annapolis,
0:09:34 but other ways to serve.
0:09:37 But I think young men such as yourself
0:09:38 that have served and young women,
0:09:40 for the rest of your life,
0:09:42 you know, your life can’t have purpose.
0:09:45 Anyway, I don’t have an easy answer for your question.
0:09:48 I would imagine that waking up
0:09:52 and being responsible for defending your country
0:09:53 and learning how to use weapons
0:09:57 and learning how to train young men and women
0:09:59 such that they felt like they could depend on each other
0:10:01 for their safety and their lives
0:10:05 and the history and the community.
0:10:08 I don’t know how you’re going to get that,
0:10:10 you know, working at the headquarters of Chick-fil-A.
0:10:15 I don’t, you know, I think a lot of our former,
0:10:17 a lot of our veterans really struggle with
0:10:21 how to find that sense of purpose and mission.
0:10:22 And I think one of the reasons
0:10:24 that the military continues to attract
0:10:28 some of our, you know, some of our most talented,
0:10:29 our best and our brightest
0:10:32 is not because of the money.
0:10:33 You know, the money’s okay.
0:10:33 It’s not good.
0:10:34 And it’s definitely not great.
0:10:36 But because you do get that community,
0:10:38 you do get that sense of pride
0:10:40 of serving the agency of something better.
0:10:41 Now, the question is,
0:10:44 do you have to find that community at work
0:10:46 or can you find other communities,
0:10:47 whether it’s a church group
0:10:48 where you get to have an influence on young people,
0:10:51 whether it’s staying involved in the military somehow,
0:10:55 whether it’s getting involved in a situation
0:10:58 or things where you can help young men,
0:11:00 whether it’s being a coach, whatever it is,
0:11:02 you have, it sounds like some of your skills
0:11:03 were from helping others
0:11:05 and having a sense of community.
0:11:10 And I’m not sure, I don’t know the situation.
0:11:11 It’d be great if you get that from work,
0:11:13 but if you don’t, it doesn’t mean
0:11:15 that there aren’t other places to establish community.
0:11:18 So without knowing much about your work,
0:11:21 if you hate it and there’s no sense of community there,
0:11:23 then, you know, I would suggest
0:11:25 looking for another job at some point.
0:11:26 Don’t leave until you have another job
0:11:28 because it’s easier to find a job when you have one.
0:11:32 But I don’t know if I have any real insight
0:11:33 around how to get that reward
0:11:35 for you get from community at your work,
0:11:36 not knowing anything about your work
0:11:37 or the specifics there.
0:11:38 What I would say is that
0:11:40 I think there are a lot of people
0:11:42 who get that reward, that community,
0:11:45 that community compensation
0:11:47 from other parts of their life,
0:11:50 their church, their sports league,
0:11:52 nonprofit work, working with young people,
0:11:53 helping others,
0:11:56 and then friends and the community
0:11:57 around whatever it is,
0:11:59 your temple, your riding club,
0:12:01 your sports league.
0:12:03 But I think trying to mimic the community
0:12:06 you got from your day job while serving,
0:12:08 trying to mimic that in the private sector
0:12:10 is going to be a real challenge.
0:12:13 So I do think that being in person
0:12:15 is a much better way to,
0:12:17 I think the office is a feature, not a bug.
0:12:18 So I don’t know if you’re working remotely,
0:12:20 but maybe trying to find a job
0:12:21 where you get to be in person.
0:12:24 I think community is largely a function of proximity.
0:12:26 So that’s one thing.
0:12:27 Are you in the office enough?
0:12:29 But I appreciate the question.
0:12:32 We’ll be right back after a quick break.
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0:14:28 My name is Tom Elias.
0:14:30 I’m one of the co-founders at Bedrock Robotics.
0:14:33 Bedrock Robotics is creating AI for the built world.
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0:15:57 Welcome back.
0:15:58 We’re on to our final question,
0:15:59 which is from Reddit user
0:16:01 DoConfection98.
0:16:02 Jeez, where did they get these names?
0:16:05 And DoConfection98 says,
0:16:08 Hi Scott, I’m making my first solo trip to London
0:16:08 in three weeks.
0:16:10 You’ve dropped many tips about great spots
0:16:11 to eat and drink in New York City,
0:16:13 but I don’t recall any London suggestions.
0:16:15 I’m planning to catch a match,
0:16:15 probably Chelsea,
0:16:17 and spending the rest of my three-day adventure
0:16:18 eating and drinking
0:16:20 all the best the town has to offer.
0:16:23 What area of London will be lively,
0:16:25 but not too touristy and full of college kids?
0:16:27 Best neighborhoods to spend an afternoon getting lost
0:16:28 while walking the streets.
0:16:30 Thanks in advance for any suggestions.
0:16:32 All right.
0:16:33 Welcome to London.
0:16:34 So first thing,
0:16:35 you’ve got to get,
0:16:37 you’ve got to go see a Premier League game.
0:16:39 It doesn’t matter what team.
0:16:41 It doesn’t matter where you sit.
0:16:41 It’s just,
0:16:43 if you want to understand UK culture,
0:16:47 Premier League football is arguably our best export.
0:16:49 or listen to me,
0:16:50 like I’m a Brit.
0:16:52 You just see,
0:16:53 it’s just so much emotion.
0:16:54 It’s so much fun.
0:16:56 And it really doesn’t matter the team,
0:16:57 but plan,
0:16:58 but just get tickets.
0:17:00 In terms of hotels,
0:17:01 there’s just some,
0:17:05 the Firmdale hotels do an amazing job
0:17:06 at a decent price point.
0:17:07 Go online,
0:17:08 go on.
0:17:08 I used,
0:17:10 when I was more budget conscious,
0:17:11 I used to use Hotels Tonight.
0:17:13 If you have the money,
0:17:14 then definitely try,
0:17:19 I mean like the Connett or the Rosewood,
0:17:20 the new Rosewood.
0:17:21 It’s just absolutely spectacular.
0:17:25 Sort of the people absolutely love the Langham.
0:17:26 There’s some beautiful hotels here,
0:17:27 but they’re very expensive.
0:17:29 Try Late Night,
0:17:30 the Connett Bar.
0:17:31 If you have,
0:17:33 if there’s any way you can get an inn
0:17:37 at either the kind of the Hot Members Clubs
0:17:39 or Maison Estelle,
0:17:39 Five Hertford.
0:17:41 I don’t know if you’re connected enough
0:17:42 to get into places like that,
0:17:44 but they’re very kind of classic British.
0:17:45 if you have time,
0:17:46 go out to the countryside
0:17:48 and you don’t have to be a member,
0:17:50 but stay at Soho Farmhouse,
0:17:51 which I just think is spectacular.
0:17:56 Sort of this super cool take on the Cotswolds.
0:17:59 Also Maison Manor,
0:18:00 and you don’t have to be a member
0:18:01 to book a room out there,
0:18:02 but if you have enough time
0:18:03 to go spend a couple of days
0:18:04 in the Cotswolds,
0:18:04 it really is beautiful.
0:18:07 I think the Tate Modern is incredible.
0:18:11 The Royal Academy of the Arts is beautiful.
0:18:12 I’m not into museums,
0:18:13 and I think they’re great.
0:18:14 If you’re into war,
0:18:16 I love the British War Museum.
0:18:17 I think that’s fantastic.
0:18:20 Restaurants,
0:18:21 I’d go to Gymkhana,
0:18:23 maybe Sketch.
0:18:26 I love Granger’s or Granger & Co.
0:18:27 I think they do a great job.
0:18:29 Again, for dinner, Hyde.
0:18:32 The neighborhood’s shortage is kind of edgy.
0:18:33 Mayfair is kind of luxe,
0:18:37 and I would say that Hampstead
0:18:40 is more sort of under the radar,
0:18:41 if you will,
0:18:43 but I also think just walking,
0:18:44 my favorite High Street,
0:18:45 because I live close to it,
0:18:47 is Marlebone High Street,
0:18:49 just walking up and down there.
0:18:50 In terms of kind of high-end retail,
0:18:51 I love Selfridges.
0:18:53 If it’s nice,
0:18:54 I would definitely take a walk
0:18:55 in Regent’s Park
0:18:56 and just marvel at the Rose Garden
0:18:57 and grab some coffee
0:18:59 and just kind of let the day go by,
0:19:01 but I would begin and end
0:19:03 at a Premier League game.
0:19:05 I just think they’re incredible.
0:19:06 Some logistical tips
0:19:07 when you’re coming in,
0:19:09 absolutely take the Paddington Express
0:19:13 into town from London’s Heathrow Airport,
0:19:17 but I just think walking around
0:19:18 any number of these neighborhoods,
0:19:20 London, I feel very safe in London.
0:19:22 Take the tube,
0:19:23 except for once,
0:19:24 take a London black cab,
0:19:25 because the cabbies themselves
0:19:26 are just hilarious,
0:19:28 but welcome to London.
0:19:29 It is one of the great tourist cities
0:19:30 in the world,
0:19:33 and I think it’s,
0:19:34 despite all the shit-posting about it,
0:19:35 I actually think New York and London
0:19:37 are both in sort of golden ages.
0:19:39 I think they’re just great places
0:19:41 to hang out.
0:19:41 Anyways,
0:19:43 welcome to the United Kingdom,
0:19:45 and if you can,
0:19:46 go Gunners,
0:19:47 root for Arsenal.
0:19:50 That’s all for this episode.
0:19:52 If you’d like to submit a question,
0:19:53 please email a voice recording
0:19:53 to officehours
0:19:55 at profgmedia.com.
0:19:55 Again,
0:19:57 that’s officehours
0:19:58 at profgmedia.com,
0:19:58 or
0:20:00 if you prefer to ask on Reddit,
0:20:01 just post your question
0:20:02 on the Scott Gallery subreddit,
0:20:04 and we just might feature it
0:20:05 in an upcoming episode.
0:20:08 This episode was produced
0:20:09 by Jennifer Sanchez.
0:20:09 Our assistant producer
0:20:10 is Laura Gennere.
0:20:11 Drew Burrows
0:20:12 is our technical director.
0:20:13 Thank you for listening
0:20:14 to the PropG pod
0:20:14 from PropG Media.
0:20:49 Thank you.