Top 4 reasons why brands should advertise on podcasts
As listener numbers of all ages exceed forecasts – and show little sign of slowing down – Bianca Bush (commercial insights manager, UK at Acast) looks at why podcasts are such a huge opportunity for advertisers.
Podcast fans are always on the hunt for the next podcast that they can become obsessed with / Jukka Aalho via Envato
It’s no secret that podcasts have grown in popularity in recent years - The Guardian reported just this week that 41% of podcast listeners are listening to podcasts more than they were 12 months ago. But brands are still at times prioritising traditional media over this lucrative medium for their campaigns - so why should they consider putting podcasts on the plan?
Audience reach and growth
If scale is the aim, advertisers might be hesitant when it comes to podcasts. After all, the medium is in its infancy – can it really provide a mass audience? The answer is yes. According to MediaTel’s Connected Consumer Survey, podcast-loving Brits consumed almost 60 million hours a week of the audio form in 2021. This was a 50% increase since 2020, and a whopping 1600% increase since 2015.
And this spike in listenership numbers is only set to continue. Last year, eMarketer estimated there to be 14.6 million listeners in the UK – a 197% increase from 2020. This year, they expect this number to further rise by 2.9m listeners, smashing pre-pandemic forecasts by 23%.
Significantly, this sort of audience growth is unlike any other audio activity. While audiences for other channels – including radio – plateau, podcast listeners are growing quarter on quarter.
But who makes up podcasts’ audiences? Research by Mediatel’s Connected Screens reveals that UK podcast users tend to be younger, but that the audience growth we’re seeing applies to all categories; there’s evidence of year-on-year growth for older audiences too.
It’s obvious that there’s an opportunity for more growth among all age groups. With over two million podcasts and almost 50 million episodes available, the choice of genres is vast: anyone can find a podcast of interest. The potential here should not be underestimated: every niche, engaged target audience that a brand can think of can be found in the podcast realm.
As the traditional media channels fight to prove that consumers are still casting their eyeballs on adverts (and not looking at their phones), podcast advertising is proving to be an engaging medium but in a different way. In fact, a BBC study recently discovered that in the UK people were 22% more likely to remember a brand mentioned in a podcast than a TV ad.
One of the benefits of podcast advertising is that it is hands-free listening, meaning the listener is able to do something else at the same time, such as going for a walk or cleaning the house. Instead of being a hindrance or distraction, activity actually makes listeners more receptive, as keeping the brain occupied enhances the brand’s ability to cut through, as found by a BBC Global News study.
The IAB’s Real Living 2021: Understanding Listeners report found that because podcasts are chosen to be listened to at that moment, the listeners give it their sole attention without other media distractions – and therefore listen with more purpose than they do with many other media channels.
Not only this, but podcast listeners specifically choose what they are listening to, their engagement is much higher. According to the MIDAS Spring report, 90% of UK podcast fans said that they listen to the majority (or the whole) of a podcast episode.
Listeners feel like they have a close relationship with the podcast hosts, and understand the value exchange in listening to the content - a study by the IAB found that 78% of listeners approve of sponsorship messages because they understand these ads fund the content they love. Advertisers should take advantage of this by partnering with podcast hosts to produce an engaging message that the listeners will love.
Compared to radio, podcast advertising makes brands much more discoverable and top of mind for purchase consideration. Tapestry research found that 51% of weekly users of each channel said that podcast ads made them want to buy something from a brand, with only 38% saying the same for radio.
How do podcast listeners take action having listened to advertising? According to a new report on podcast advertising by the IAB and Edison research, 45% regularly respond to ads by visiting the brand’s website and 37% gather more information about the product or company. The success of direct-response advertising within podcasting demonstrates the power of taking action - these ads are a way for brands to have endorsements from famous content creators, who can be very influential when it comes to encouraging listeners to take action.
Following a three-year period of uncertainty through life-changing world events, more than ever consumers are looking for brands they can trust, in the same way they are looking for trustworthy media outlets. In fact, Edelman research found that 70% of consumers agree that brand trust is more important today than in the past.
Luckily for advertisers, podcast advertising is considered more trusted than other media channels. A Magna Global study illustrated that 48% of UK listeners said they trust podcast hosts more than hosts of other traditional media, including radio or TV shows. A recent Guardian study also found that trust levels increased from 45% to 63% when podcasts were added to a brand’s media mix.
A podcast host builds authentic relationships with its listeners over weeks, months or even years of weekly episodes. YouGov research found that UK listeners are more likely to ‘feel deeply connected’ to a brand when they can hear a ‘voice’ - more specifically, their favourite host’s voice - so brands should tap into this ready-made authenticity and trust to help consumers further connect with their brand.
Podcast fans are always on the hunt for the next podcast that they can become obsessed with. And they are spoilt for choice – an Ofcom Podcast Survey 2021 showed that people believe that podcasts offer more variety and choice, with 78% of people saying they find it easy to find a podcast that they will enjoy, and 87% saying that they like the range of content available on podcasts. The more content there is available to the masses, the more opportunities there are for brands to align themselves with the various subject matters and topics covered.
Podcast advertising looks to grow positive perceptions of brands, and encourages listeners to spend, achieving greater impact than some of the traditional formats. As consumers look to audio to get a much-needed break away from their screens, podcasts have a much bigger role to play in media plans across the board - and brands should follow suit.
Visit acast.com for more details on how Acast can power your next advertising campaign.
Content by The Drum Network member:
Acast was founded in 2014 and is the world’s largest independent podcast company.
A pioneer in the open podcast ecosystem, Acast’s powerful podcast monetization marketplace delivers for creators and advertisers alike. Advertisers can efficiently target an engaged audience of listeners through dynamic ad insertion, while podcasters are given access to a range of monetization opportunities — including paid subscriptions through Acast+ — and the necessary tools to expand their listener base.
If you listen to a podcast hosted with Acast and hear an ad, it’s Acast delivering that audio behind the scenes — and sharing revenue with the podcaster.
The company has a global footprint across 12 countries and, during 2020, had approximately three billion listens on Acast-connected podcasts. Today, Acast hosts 40,000 shows. Acast’s headquarters are located in Stockholm, Sweden and the Company has nine local subsidiaries in the UK, US, Australia, Norway, France, Germany, Ireland, Mexico and Canada.
In recent years, Acast has undergone an expansion with continued strong growth, with net sales increasing from SEK 180 million in 2018 to SEK 1.026 billion in 2021 — representing 73% growth versus 2020.
As a result of Acast’s recent growth initiatives, the number of annual listens grew from approximately 1 billion (2018) to 3.75 billion (2021). In the fourth quarter of 2021, Acast had 1.09 billion listens.
Acast was co-founded by Johan Billgren, its Chief Innovation Officer, and is listed on the Nasdaq First North Premier Growth Market.