7 reasons why podcast advertising delivers

Key Insights:

1. Superior Engagement Across All Metrics:

• Awareness: Podcast advertising outpaces traditional media with a 12-point higher brand awareness among listeners compared to non-listeners.
• Favourability: Podcast ads generate a 16-point higher favourability, showcasing the medium’s ability to create positive brand perceptions.
• Action: Podcast listeners are 22 points more likely to look up products and 18 points more likely to make purchases after hearing an ad, significantly higher than those exposed to TV or radio ads.

2. Brand Metrics:

• Shopify Example: Shopify’s podcast advertising efforts resulted in a 14-point lift in brand favourability and a 19-point increase in consideration among regular podcast listeners.
• HelloFresh: HelloFresh saw a 20-point lift in purchase intent among podcast audiences, demonstrating the medium’s strength in driving lower-funnel actions.

3. Young, Exclusive Audience:

• Heavy podcast listeners are typically 10-15 years younger than heavy TV and radio users. This demographic shift is crucial for brands targeting younger, more dynamic audiences.
• Income Level: 40% of podcast listeners fall into the $75,000+ income bracket, indicating a more affluent audience compared to traditional media consumers.

4. Effectiveness in Lower Funnel:

• Podcasts drive 18% more action at the lower funnel stages (e.g., purchase intent) compared to streaming TV and 10% more compared to online video ads.

5. Positive Reception of Ads:

• 80% of listeners appreciate the creator-hosted ad format in podcasts, finding it more authentic and engaging.
• Even among ad-averse individuals (e.g., YouTube Premium subscribers), 65% still respond positively to podcast ads, indicating a unique tolerance for this format.

6. High Favourability and Consideration:

• 15-point lift in consideration among heavy podcast listeners, with a 10-point higher likelihood to recommend the product or service compared to those exposed to other media.
• When reviewing just the top 5 advertisers in terms of share of voice (SOV) across each medium, the results are even more stark for favourability: +5pp for TV, +8pp for radio and +14pp for podcasting.

7. Exclusive Reach:

• 70% of heavy podcast listeners do not engage with traditional media like TV or radio, making podcasts an essential channel for reaching these otherwise inaccessible audiences.

Final thoughts:

Podcast advertising is emerging as a highly effective medium, delivering superior engagement and driving brand metrics across the board. With a younger, more affluent audience and a proven track record in converting awareness into action, podcasts present a compelling opportunity for advertisers in 2024. Brands looking to maximise their reach and impact would do well to invest in this burgeoning platform.