white-label voice assistants will win the battle for podcast discovery
The Rise of Audio Consumption in the US
A sense of boredom, coupled with restrictions on movement and increased screen fatigue, is driving a surge in audio consumption among Americans.
Consumers are increasingly turning to formats like podcasts, voice assistants, and smart speakers, frequently utilizing them concurrently.
Voice Assistant Usage
Approximately 128 million individuals in the United States engage with a voice assistant on a monthly basis.
While smartphones represent the primary platform for these assistants, the presence of nearly 160 million smart speakers within American households demonstrates a broadening adoption.
The Podcast Boom
Podcasts are currently experiencing a period of significant growth and popularity.
Listeners now have access to an unprecedented variety of insightful and engaging podcast content, with new programs being launched on a daily basis.
Monthly podcast listeners exceeded 100 million in 2020, representing a substantial 40% increase over just two years.
Podcast Access Points
Individuals access podcasts through a diverse range of platforms.
These include specialized podcast applications like Stitcher, publisher-specific apps such as NPR’s, music streaming services like Spotify, and the pre-installed applications on their smartphones or voice assistants.
Given the current production of over 1.7 million podcasts, even avid listeners find it challenging to keep up with all available episodes.
The Role of Voice Assistants
This challenge is where voice assistants prove particularly valuable.
Competition in the Voice Assistant Market
The leading voice assistants – Amazon, Apple, Google, Microsoft, and Samsung – currently hold a dominant position in the market.
However, they are facing growing competition from customized, white-label voice assistants.
Success in this competitive landscape will ultimately depend on which company can deliver the highest quality of service.
The Future of Voice Interaction
The voice assistant capable of offering personalized podcast recommendations, facilitating content search, providing previews, and enabling discovery through easily shared snippets will likely emerge as the leader.
The Ongoing Competition for User Engagement
The initial struggles within the consumer electronics industry to attract users centered around the choice of operating system – specifically, Windows versus Mac. Voice technology represents a different kind of operating system, and the competition to dominate voice control is equally intense.
Siri, developed by Apple, was the first widely adopted modern virtual assistant. Both Amazon and Google have made substantial investments – frequently operating at a financial loss – to secure voice activation for their users.
Their goals include gaining a larger portion of the market and safeguarding their core business areas, namely e-commerce for Amazon and search functionality for Google.
In 2018, Amazon held a 24% share of the virtual assistant market. Apple followed closely with 22%, while Google captured 20%.
Microsoft’s Cortana accounted for 10% of the market, though its usage was primarily limited to desktop computers. Samsung’s Bixby held a 6% market share.
These five prominent brands were the initial innovators in this space. However, the subsequent stage of the voice technology competition will likely involve white-labeled solutions.
This means voice assistants will be integrated into a wider range of devices and brands, rather than being tied to specific companies.
The Future of Voice Assistants
The shift towards white-labeling suggests a future where voice control becomes ubiquitous. It will be embedded in everything from automobiles to household appliances.
This broader adoption will likely lead to increased competition and innovation, as more companies vie for a position in the voice-activated ecosystem.
- The initial competition focused on operating systems.
- Voice technology now represents a new battleground.
- Amazon and Google are heavily invested in voice control.
- White-labeling will likely be the next phase of development.
The Growing Trend of White-Label Voice Assistants
Many device manufacturers lack the resources to independently create their own voice assistants. Consequently, they often rely on established platforms like Google Assistant or Amazon Alexa to integrate voice capabilities into their products. However, this integration can inadvertently create a dependency that weakens direct relationships with their customer base.
A parallel can be drawn to the mobile phone industry. Numerous manufacturers opted to utilize Android instead of developing proprietary operating systems, ultimately resulting in a shift in customer loyalty towards the OS rather than the phone brand itself.
A similar dynamic is unfolding with voice assistants. Each invocation of “Hey, Alexa” diminishes brand recall for the device manufacturer.
The disadvantages extend beyond brand recognition. Valuable user data is stored remotely in the cloud. Furthermore, Amazon and Google maintain control over action routing and skill development – analogous to app ecosystems – capturing the revenue streams associated with these functionalities.
This has prompted a significant number of hardware and software companies to resist surrendering user control to tech giants. They are actively exploring alternative solutions, and fortunately, the landscape is evolving. IBM pioneered a white-label voice application in 2018, allowing for custom wake words, tailored data training, and complete data retention.
Recently, Amazon introduced Alexa Custom Assistant, mirroring this approach. This allows device manufacturers to leverage Alexa’s technology to build branded virtual assistants aligned with their identity and user requirements. Fiat is the initial adopter, planning to integrate the technology into its Uconnect vehicle system, potentially prompting drivers to say “Hey, Fiat” instead of the familiar “Hey, Alexa.”
The potential of a branded voice assistant like “Hey, Fiat” should not be underestimated. Automotive manufacturers often face challenges in cultivating brand loyalty, given the cyclical nature of car purchases. Voice interaction presents an opportunity to forge stronger, ongoing relationships with customers.
Indeed, over 60% of car purchasers consider the presence of a voice assistant when making a buying decision. This statistic underscores the growing importance of these technologies and explains the emergence of companies like Cerence and SoundHound, which specialize in providing white-label voice assistants specifically for the automotive sector.
The Role of Podcasts in Voice Assistant Technology
Leading voice assistants demonstrate proficiency in interpreting voice commands, discerning user intent, and constructing chatbots. While Amazon emphasizes Alexa’s ease of shopping and Google highlights its search capabilities, the fundamental functionalities of these assistants are becoming increasingly standardized.
Despite the potential, consumers have not widely adopted voice-based purchasing. Instead, they readily utilize voice assistants for accessing information, including weather forecasts, news briefings, and podcasts. Content is poised to become a defining factor in consumer selection between Alexa, Google, Bixby, or customized alternatives.
Challenges with Traditional Podcasts
Podcasts are typically lengthy, often exceeding 45 minutes in duration. Furthermore, their distribution is fragmented across numerous platforms. Consequently, listeners encounter difficulties in discovering podcasts that genuinely align with their individual interests.
A key need is for audio content that allows for quick previews and sampling, mirroring the experience offered by text and video formats. Listeners require the ability to quickly assess content relevance.
The Demand for Short-Form, Personalized Audio
Consumers, accustomed to the concise formats of platforms like Twitter, TikTok, and Netflix, now anticipate audio content to be both brief and tailored to their preferences.
However, achieving true personalization necessitates a fundamental shift in content structure. The advent of music personalization, a transformative development, was only possible after Steve Jobs persuaded the music industry to separate albums into individual tracks.
This fragmentation enabled a more adaptable and enhanced user experience, with personalization at its core. A similar approach is needed for audio content.
The Future of Podcast Consumption
Personalized podcast listening experiences will only become a reality when episodes are divided into smaller segments and then intelligently reassembled. Voice assistants will increasingly leverage this type of content.
Utilizing segmented audio also addresses a significant concern regarding the presence of voice-activated devices in personal spaces – the need for authenticity. Users desire genuine interactions, which are difficult to achieve with robotic-sounding platforms.
Despite efforts by Google and Amazon to imbue their chatbots with personality, the underlying mechanical nature remains apparent. Short-form audio offers a solution to this challenge.
For example, a user seeking the latest Tesla news would likely prefer a concise summary of relevant podcast discussions, complete with insightful analysis, rather than a purely factual recitation of stock figures delivered by a robotic voice.
Gaining a Competitive Advantage
Voice assistants that effectively utilize short-form content will secure a competitive advantage. Success will hinge on the ability to cater to the specific needs of podcast listeners, ultimately attracting users and establishing market dominance.
TC Early Stage: A Key Event for Startup Founders and Investors
Scheduled for April 1st and 2nd, TC Early Stage will feature insights from leading founders and venture capitalists.
These experts will detail their strategies for company development, fundraising, and portfolio management.
Comprehensive Topics for Startup Growth
The event’s agenda encompasses crucial areas for startups, including recruiting, sales, legal considerations, PR, marketing, and brand building.
Each session is designed to facilitate interaction, with significant time allocated for questions from attendees and open discussion.
Exclusive Discount for Newsletter Subscribers
A 20% discount on TC Early Stage tickets is available using the code ECNEWSLETTER.
Don't miss this opportunity to learn from the best and network with key players in the startup ecosystem.