It’s no secret podcasting is a booming medium. Nowadays, everyone has that friend who’s decided they definitely want to start a podcast or another whose conversational topics are sourced exclusively from podcast episodes, oftentimes starting with, “I was listening to a podcast the other day…”
The numbers bear out: research from eMarketer suggests 106 million Americans– nearly ⅓ of the total population– were tuning into podcasts last year. The US isn’t an outlier; survey data from 2020 showed that more than one in four people had listened to a podcast in the last month in Canada, Italy, and Australia (36%, 26%, and 25%, respectively).
Advertising is catching up to this trend: PwC forecasts $800 million USD will be spent this year on podcast advertising alone. By 2024, the company predicts ad spending to rise to $1.7 billion (more than double!), an upwards growth rate of 18.8% per year.
The reasons for this are simple: audiences are growing, the demographic is lucrative, and consumer trust in podcast advertising is high.
Indeed, as Tony Hereau, VP of Audience Insights at Nielsen remarked, podcasts have a higher concentration of listeners between 18 and 44–a highly coveted demographic. What’s more, focus group data suggests that 66% of respondents reported favorable views of podcasts hosts.
“As our brand is all about optimizing offline advertising, we recognize the value of this kind for consumer trust,” said Andreas Eisermann, CEO of drtv.agency, “we can leverage this trend to provide a better return on ad spending (ROAS) for our clients.”
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How to capitalize on this trend:
As Nielsen notes, one of the few drawbacks to this potentially lucrative market is the number of competing platforms out there. It’s hard to pull accurate data if you’re conducting a number of campaigns intended to reach a wide audience across different platforms. That’s why it’s important to find a niche–marketers will have more accurate segments of data and the chance to attach their products to more relevant content.
“By tracking campaigns through multiattribution platform Attributy, we can get a deeper understanding of what conversions are happening and where and when they occur,” said Andreas Peltret, Chief Growth Officer of drtv.agency, “but we also recognize the value of specificity. We’re looking into what podcasts work best for which clients and actively provide them with measurable data on campaign effectiveness.”
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Marketers may be wondering which genre it would be best to target. News led the pack in terms of advertising revenue share in 2019 (22%) but was followed closely by Comedy (17%) and Society & Culture (13%). Indeed, while news appeals to the broadest audience, each genre secures a fair piece of the pie.
“Personally, I’m a big fan of podcasts,” said Katy Cipriano, drtv.agency’s International Media Planner and Buyer, “it’d be great to bring my own passion to sorting out which podcasts best suit our clients across borders and markets.” There might be almost 2 million to choose from, but for companies like drtv.agency and Attributy who can leverage their analytical and anecdotal insights, it’s an exciting new frontier!
Get in touch with us today to learn about the exciting possibilities podcast advertising has to offer!