[HN Gopher] Why is every podcast sponsored by a VPN company?
       ___________________________________________________________________
        
       Why is every podcast sponsored by a VPN company?
        
       Author : yarapavan
       Score  : 43 points
       Date   : 2022-09-14 17:27 UTC (5 hours ago)
        
 (HTM) web link (girdley.substack.com)
 (TXT) w3m dump (girdley.substack.com)
        
       | bena wrote:
       | A few months ago, this article would have been titled, "Why is
       | every podcast sponsored by a shaving company?" or "a mattress
       | company" or "some other company".
        
         | pessimizer wrote:
         | Meal kits. But in none of those cases would it be weird to ask
         | why (so many people on podcasts want to send me overpriced food
         | I have to cook myself.)
        
       | RutgerHauer wrote:
       | My stepmom sponsors my podcast. Brazzers made an episode about
       | our arrangement.
        
       | fancyfredbot wrote:
       | If all these VPNs make such huge margins, and if barriers to
       | entry are so low, then why hasn't someone undercut them?
        
         | midislack wrote:
         | Intelligence agencies will shut you down if you compete with
         | them.
        
           | paulryanrogers wrote:
           | Wouldn't this tip their hand, exposing them as such agencies?
           | A simpler explanation is there's a lot of money sloshing
           | around trying to corner new or lucrative markets.
        
       | missedthecue wrote:
       | VPNs are very high margin products (50% of revenue is cashflow,
       | the author points out). But they suffer from higher churn rates
       | than most SaaS businesses. Switching costs are essentially free,
       | it's hard to differentiate your product from someone else's in a
       | meaningful way, discounts and promos abound, and achieving any
       | kind of lock-in is next to impossible.
       | 
       | Therefore, they advertise a lot. We here on HN probably get a lot
       | of sampling bias because we are more likely to listen to tech
       | related podcasts. If we listened to fashion podcasts, we'd hear
       | different ads.
       | 
       | VPNs also have a unique problem where the people that really
       | _need_ their product don 't have the facilities to subscribe to
       | one. To illustrate this, most of the countries in Africa censor
       | the web to varying degrees, but the credit card penetration rate
       | on the continent is only at 4% right now. So VPNs have to
       | advertise to the people who don't _need_ VPNs, but can afford
       | them. And that 's why you hear them talking about how everyone at
       | Starbucks is snooping on your web traffic as if https isn't 30
       | year old technology or hyping up their "military grade"
       | encryption (i.e. AES-256 run of the mill stuff).
       | 
       | Source: I work for a VPN company.
        
         | zwkrt wrote:
         | I particularly like the spin that the Youtube channel We're in
         | Hell uses to advertise their VPN. Example:
         | https://youtu.be/H_JQAx5uXB0?t=308
         | 
         | "You're still not sure if you are as cheap or as evil as you
         | could be. That's where SurfShark comes in!"
        
         | lloydatkinson wrote:
         | Many youtube videos not even aimed at tech audience are
         | sponsored by node vpn
        
       | naet wrote:
       | There are a couple companies or industries that seem to dominate
       | large sections of the digital ad market for videos, podcasts,
       | live streams, social media, or other content creator focused
       | markets.* They aren't all VPNs, but VPN is one of the main
       | categories for sure.
       | 
       | Not sure why these companies have a larger advertisement budget
       | or why they are choosing those platforms over other more
       | traditional ad opportunities.
       | 
       | Some examples: Audio books / podcasts (Audible), shaving supplies
       | (dollar shave club), sports betting (Draft Kings), crypto and
       | crypto betting (Stake), VPNs (Nord), online classes / tutorials
       | (Skillshare), etc.
       | 
       | *At least based on my own anecdotal online media consumption.
        
         | iudqnolq wrote:
         | Some of those obviously have negligible marginal costs. I think
         | the ones that are less obvious, like shaving and mattresses,
         | exhibit the same characteristics.
         | 
         | I haven't heard this from a reliable source, but I read
         | somewhere on the internet the founder of Dollar Shave Club
         | bought a warehouse of low quality razors from a company that
         | went bankrupt and misrepresented them as custom premium
         | products. I don't know anything about that situation anyone
         | wouldn't see by googling basic terms though.
        
           | tinus_hn wrote:
           | Or perhaps that's just what Big Shave wants you to think!
        
         | tablespoon wrote:
         | > Some examples: Audio books / podcasts (Audible), shaving
         | supplies (dollar shave club), sports betting (Draft Kings),
         | crypto and crypto betting (Stake), VPNs (Nord), online classes
         | / tutorials (Skillshare), etc.
         | 
         | It's been awhile since I've listened to podcasts like that, but
         | two other heavy advertiser I can recall are: online mattress
         | companies and SquareSpace.
         | 
         | I've also noticed that newspaper-affilliated news podcasts
         | often are full of advertisements for CEO podcasts (which
         | appears mainly meant to pump up the CEO's prestige/name
         | recognition).
        
       | kwhitefoot wrote:
       | They aren't. It just seems that way because the ones that you
       | listen to are.
        
       | jbigelow76 wrote:
       | I read the article twice just to make sure I didn't miss it but I
       | believe the article isn't the headline "Why is every podcast
       | sponsored by a VPN company?" which then goes on to explain why
       | podcasts are (might be?) a good advertising channel. The article
       | is literally the headline, a summary of the VPN biz and... that's
       | it. Nothing specific about podcast sponsoring or how that channel
       | differs from any others. lol
        
       | rchowe wrote:
       | ... and a lot of those VPN companies are probably VC-funded.
       | 
       | Tom Scott made a good video on the uses and non-uses of VPNs [1].
       | VPN advertising has changed since that video to downplay
       | "security", but what I think is odd is that they've replaced that
       | with advertisement that basically is "violate the terms of
       | service of Netflix".
       | 
       | [1] https://www.youtube.com/watch?v=WVDQEoe6ZWY
        
         | franga2000 wrote:
         | Glad I'm not the only one that got the feeling this video
         | impacted the entire VPN advertising space. All of us techies
         | have been screaming this from day one and many tech-focused
         | creators even talked about this publicly, but the ads kept
         | going. Tom Scott seems to be in the perfect position where he
         | has the technical background to understand why the ads were
         | wrong, but also has a much wider and more general audience that
         | includes many other creators.
         | 
         | I'm guessing many creators learned about just how blatant the
         | lies they were selling were for the first time from him and put
         | pressure on their sponsors to chill with the fear-mongering.
         | And even those that knew and lied regardless were probably
         | scared that their audience now knew too, so shifting away from
         | these talking points was in their best interest too.
         | 
         | TL;DR: Tom Scott is awesome and he did a lot of good by making
         | that video
        
           | iudqnolq wrote:
           | Tom Scott's current VPN ads are an interesting balancing act.
           | 
           | He generally opens with him using the VPN to get around geo-
           | targetting in a way that isn't in violation of TOS. He does a
           | huge amount of travel, so he does run into poorly designed
           | websites that try to be helpful and serve content by location
           | sometimes.
           | 
           | He doesn't say outright that such opportunities are rare, and
           | normal people may never encounter them. He does say that
           | before using VPNs to get around restrictions by streaming
           | services users should make sure they're not in violation of
           | any TOS. He never talks about security.
        
           | shalmanese wrote:
           | I hope someone does a similar takedown of Masterworks
           | (fractional art investing). I've seen way too many financial
           | planning or finance adjacent podcasts regurgitate Masterworks
           | claims completely uncritically to a way too impressionable
           | audience.
        
             | sneak wrote:
             | If He didn't want them shorn, He wouldn't have made them
             | sheep.
        
         | musicale wrote:
         | > violate the terms of service of Netflix
         | 
         | It's a technical solution to a business-created problem.
         | 
         | And Netflix and VPNs probably create incremental business for
         | each other.
        
       | toddmorey wrote:
       | My experience has been that every podcast is sponsored by a
       | another podcast. I'm not sure where the chain ends.
        
         | jmt_ wrote:
         | Is that more the case for particular categories of podcasts?
         | Because I haven't noticed this myself. I mainly listen to
         | stand-up comedian/general comedy podcasts and the usual
         | advertising suspects are Raid Shadow Legends, NordVPN, etc.
         | Other than recurring guests/hosts, the podcasts I watch seem
         | mostly disjoint from one another.
        
         | rentfree-media wrote:
         | I do a podcast.
         | 
         | A lot of that is a tried and true method of promotion for those
         | coming into podcasting without a big following elsewhere to try
         | to convert.
         | 
         | We started with a fairly large social media following that we
         | could promote with, but others without such an existing
         | audience are better off advertising on similar shows. After
         | all, that's the draw of podcasting as a medium... advertising
         | efficacy is pretty high.
        
       ___________________________________________________________________
       (page generated 2022-09-14 23:02 UTC)