The story of podcast advertising has been one of slow and steady growth over the last decade. As with several other media types, consumption of podcasts was accelerated by the pandemic, though still represents a small sliver of overall ad spending and activity. Now in 2023, as the volume of podcast programming and inventory continues to multiply, and listenership along with it, meaningful scale is easier than ever to achieve.
But not all reach is created equal, according to those most bullish on podcasts. Comparing podcast impressions to digital display, video or social impressions is like comparing apples, oranges and bananas. In our annual podcast advertising study, advertisers significantly investing in the space indicated that the differentiated value of podcast impressions is driving their optimism. They see podcasts as a powerful narrative format that captures sustained attention and delivers a unique quality of listener engagement. Reaching audiences away from screens, hands-free, while out and about, walking, driving, housekeeping or at the gym means that listeners are balancing productive lifestyles with engaged attention to the content, including ads, they’re hearing.
Audio advertisers identified several attributes that differentiate the value of podcast impressions. First, they indicated that upper/mid-funnel campaigns are the sweet spot. This is largely attributed to the podcast format enabling brands to storytell in a way that naturally moves listeners from awareness to affinity. Our findings show that only digital video ranked higher than podcasts as the channel that is most effective at increasing brand favorability and preference.
The power of hosts and host-read ads are also major differentiators for podcasts from other digital video or social formats. Hosts deliver a sense of credibility, likeability and provide an authentic influencer effect, which is unique from other creative formats.
Additionally, advertiser selection of podcast partners and programs depends on their ability to deliver high-quality programming at scale. As reflected by growing interest and attendance at the podcast upfronts, advertisers are eager to partner with new shows and test out new measurement capabilities. This year, the podcast upfront event featured new and diverse voices, highlighting for advertisers more opportunities to reach untapped audiences.
As we continue to follow the growth trajectory of podcast advertising, the breadth of programming and diversity of voices, along with the uniquely powerful influence of those voices, should accelerate more new advertisers coming into the fold. Accordingly, the providers offering the best program-level contextual targeting are poised to capitalize on that momentum, as context is the north star for narrative-driven advertising, and unlocks the power of podcasts’ unique effectiveness for brands.
Sarah Bolton is EVP of Business Intelligence at Advertiser Perceptions
