More brands are now using podcast advertising to promote their products.

Podcast advertising expenditure has seen double digit growth over the past 5 years, with this growth expected to continue for the next few years.

There is no doubt about the efficiency of podcast advertising for both brand and performance advertisers as advertising budgets are following that success.

Statista graph representing the growth in podcast ad spend
Source: Statista 2022

Why Agencies Love Podcast Advertising

Podcasts as a media channel are a dream for advertising and media agencies.  They can offer scale but can be extraordinarily niche.

They offer the opportunity for a brand to align itself authentically with a trusted brand – the podcast itself with its dedicated following.

The podcast audience is opted in, engaged and often listen via headphones.  This active listening allows podcast advertisers a very different environment to radio advertising, which is often on in the background, in the home, office or car.  This intimacy with the listener offers a far richer experience for an advertiser to tap into.

What do advertisers need to be thinking about when considering podcast advertising as part of their media mix?

Podcast Advertising Considerations

As with any other advertising channel a brand should start by thinking about how this ad is going to deliver real value to the final consumer.

For podcast advertising this must start with making sure the ad placement and content is as authentic and as relevant as it can be.  This is where podcasts can really punch above their weight.  There’s a range of placement opportunities, from a standard 30 second ad to sponsorships to being part of the content creation process itself.

Host read ads, in my experience, will always deliver the biggest impact.  To deliver amazing advertising via a host read ad relies on proper media planning.

Choosing the right podcast, with a host that has the perfect affinity to your target audience, ensuring the host speaks in their own style and is fan of the brand, so their endorsement is authentic.

Why Host Read Ads Work

Research backs up this authentic approach and shows that host read ads deliver a significant lift in ad recall.  Nielsen’s Podcast Ad Effectiveness Survey showed host read ads had a brand recall of 71%, which is massive.  This can be compared to 62% for non-host read ads.

But let’s just stop on that lower number.  62% ad recall for non-host read ads.

62% is still absolutely massive.  So, when considering podcast advertising you know that the base line for a standard ad will be a massive 62% or if you went host-led then it shifts into amazingness.

Other research studies back this up with similar numbers.  PWC’s Strategy and Market Study has ad recall for podcast advertising at 60%.  We can compare this to another digital channel that we know is hugely successful, online video.

Online video advertising comes in at 25% ad recall.  60% versus 25% and that 60% is generic podcast advertising, and that will rise with a host-led approach.

This authentic approach ensures that the ad isn’t jarring when it airs.  This translates back to the listener, as research shows that ads are less interruptive and the listener knows that the advertiser is financing future content.

Advertising Directly Enables Content Creation and Creativity

The Guardian has shown that podcast advertising amplifies other media channels too.  A direct quote from that research:

Interestingly, in combination with other media, the overall effectiveness of an advertising campaign is maximised by adding podcasts into the mix. For example, those saying “it tells me something new about the brand” increases by 34% when podcasts are added alongside a radio campaign.

So what?

In summary, podcast advertising has huge potential for any brand.  At Altair Media we have seen huge success across both direct to consumer and business to business campaigns.

  • Podcast advertising can deliver scale or target niche communities.
  • Podcasts deliver an authentic endorsement from a trusted source.
  • Listeners have opted in and engage with the content in more intimate way compared to other channels.
  • Campaigns have huge brand recall potential.
  • Podcast advertising amplifies other channels.

So what’s not to love?

If you’ve read this far, you probably love podcasts too, or work at Altair and have been told to read this.  Either way, you should listen to our podcast!  Produced and delivered by the amazing team here at Altair.
Listen to the We Make Amazing Podcast HERE

By David Harvey,
Director of Altair Media

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