Podcasts have steadily become one of the most popular forms of media for entertainment and education. Listenership is on the rise, even overtaking video and radio consumption in some age groups. This makes podcasts a powerful platform for marketers to reach potential customers.
In 2022, podcast ad spending surpassed $1 billion and is expected to quadruple to over $4 billion by the end of next year. If you're looking for a way to amplify your marketing efforts in 2023, here's why podcast advertising should be a part of your strategy.
/// Less Intrusive Ads
One of the main advantages of podcast advertising is that it's less intrusive compared to other forms of advertising. A recent study found that 62% of podcast listeners heard an ad in the last episode they listened to, and only 20% of those skipped the ad.
In contrast, pre-roll ads on YouTube have a skip rate of 74%, and ads on Facebook and Instagram are often scrolled past. This means that podcast ads are less likely to be ignored or skipped by the listener.
Moreover, because podcast ads are often read by podcast hosts, they tend to be more engaging and personalized. Unlike traditional radio or TV ads, podcast ads are often delivered by a trusted voice, which adds credibility to the product or service being advertised.
Podcasts allow for more creativity in terms of ad format, length, and style. Brands can choose from host-read ads, sponsorships, pre-recorded ads, and more. This flexibility allows marketers to tailor their message to fit the tone and style of the podcast, resulting in a more effective and targeted campaign.
/// A Vast, Growing Audience
The sheer number of people listening to podcasts is a driving incentive to advertise in this medium. According to a report by Podcast Insights, there are nearly 500 million podcast listeners globally, close to double what it was four years ago.
This growth is driven by younger audiences, with over 60% of podcast listeners under the age of 44. In the US alone, 53% of people aged 12 and older regularly listen to podcasts, and that number is expected to continue to rise.
Podcast listeners are also a highly engaged audience. They are more likely to follow brands on social media, purchase products online, and attend events. Podcast listeners are 52% more likely to buy from a brand they've heard on a podcast, and 60% of podcast listeners have bought something they heard about on a podcast.
This high level of engagement makes podcast advertising an effective way to drive sales and brand awareness.
/// Niche Audience Targeting
Finally, podcast advertising offers an opportunity to reach niche, passionate audiences. Because podcasts cover such a wide variety of topics, there is a podcast for almost every interest, hobby, or industry.
For example, if you're a health and wellness brand, you can advertise on a podcast about healthy eating, yoga, or meditation. If you're a travel brand, you can advertise on a podcast about solo travel, adventure, or luxury travel. By advertising on a podcast that aligns with your brand's values, you're more likely to reach a passionate and engaged audience.
In contrast, traditional PPC or paid social advertising often reaches a broader audience, which may include people who aren't interested in your product or service. This results in wasted ad spend and lower conversion rates. Podcast advertising allows you to target your audience more precisely, resulting in a higher ROI.
/// Including Podcast Advertising in Your Media Plan
As the podcast industry continues to grow, it's important for brands to consider this platform as a part of their marketing strategy to remain competitive and connect with their target audience. With the expected growth of podcast ad spend in 2023 and beyond, now is the time for brands to start investing in this platform.
In addition, with the rise of audio-based technologies like voice assistants and smart speakers, podcast advertising has the potential to become even more influential in the years to come. By establishing a presence in the podcasting world now, brands can position themselves to take advantage of these emerging technologies and stay ahead of the curve.
The benefits of podcast advertising are clear. By tapping into this powerful platform, brands can increase their reach, drive sales, and build stronger connections with their customers.
To take advantage of this opportunity to stand out in a crowded marketplace and drive growth for your brand, contact us today.