There’s lots going on in podcasting: technology developments and data are developing rapidly. We see an increase in targeting and automation using programmatic advertising, more video integration and live podcasting, all of which allow advertisers new ways to promote their brands within podcasts. And with politicians seeking to raise their profile on mass-reach podcasts, the channel, and ad exposure, have really hit the big time.
In the last few years, we have seen the rise of giant podcaster personalities who command big bucks: Travis and Jason Kelce who have just signed a $100m deal with Amazon for their New Heights podcast; Joe Rogan and his rumoured $250m deal with Spotify. But men are no longer dominating the talkspace - Alex Cooper’s Call Her Daddy podcast, recently signed to SiriusXM for $125m, is the most listened to podcast by women in the US.
Common among these examples is huge reach, gained through an authentic and natural style - essential for attracting big name guests, growing a loyal fan base and for brands, who need to predispose more people. But the podcast landscape is wide and varied: it extends to over 6 million podcasts globally, providing brands and marketers with the opportunity to align with content and creators that connect with their target audience, at a niche or a mass reach level.
Publishers and platforms are clearly investing in talent. Meanwhile, brands are planning to increase spend: a net 41% of marketers globally plan to increase spending on podcast advertising in 2025 (Kantar Media Reactions 2024). So is it proving to be effective? Let’s dive into the data.
A net 41% of marketers globally plan to increase spending on podcast advertising in 2025
Podcast ads are effective: but what are the specifics?
Podcasts don’t exist in a vacuum: marketers need to be able to compare podcast advertising effectiveness with other digital media channels – and the only way to do this is at scale, using validated normative data. We have created some recent insights, based on a meta-analysis of our US LIFT Digital MarketNorms through Q1 2024 and US LIFT Podcast Digital MarketNorms.
Our findings are as follows:
Podcasts drive up key Brand KPIs
What do consumers think about podcast ads?
Our Media Reactions 2024 research tells us that consumers globally point to podcasts ads as trustworthy, relevant and useful. In the US, the fact that they ‘capture my attention’ is also more pronounced. As podcasts are increasingly viewed as a trusted source of information, whether that be for life advice, news updates, candid conversations, etc., brands must understand how to leverage that trust and engagement to increase consideration. This is particularly notable within the auto and financial service verticals where in depth conversation and information can bring the proposition to life in a unique way through podcast advertising.
However, on the negative side, podcast advertising is seen as repetitive and ‘something I try to ignore’ – so brands need to be aware of over-delivering on frequency and maximise creativity in how they use podcast ad formats. For example, authenticity is important for host-read or host-written ads, which are prevalent on podcasts today.
Attitudes towards podcast ads
So where’s podcast advertising going?
The increase in video podcasting will provide brands with a unique opportunity to leverage both the creator’s and the brand’s creative video assets. However, brands must be mindful that this still is an audio-first medium, with consumers often listening to audio only with video minimised or in the background.There will be more diversity in ad formats, integration with other media (including social), more multichannel campaign and more targeting possibilities. Live podcasting offers the ability for advertisers to engage in real-time, which leads to even more innovative creative solutions.
With marketers set to spend more in 2025 on podcast ads, podcast platforms will need to continue to innovate to ensure the consumer experience is top of mind.
For all the reasons above, podcasts are not the same as radio ads and we would caution against using the same creative assets. In the same way that many brands are finding success using content creators on social platforms, we think that partnering with podcasters and platforms to create an authentic brand experience (for example, host-written ads) will drive further effectiveness and innovation in this space.
To find out more about how we measure the effectiveness of podcast advertising and other digital platforms using LIFT, get in touch.
