The popularity of podcasts has grown exponentially in the last several years. It’s reached the point where you’d be hard-pressed to find someone who hasn’t listened to one before, even if only peripherally. And with Joe Rogan’s latest $100 million deal for the rights to his podcast on Spotify, businesses should take notice!
This popularity has made it the perfect proving ground for a new wave of advertising. Millennials and Gen Z make up a large portion of podcast listeners, and it’s been proven that they are more receptive to hearing adverts from podcasts than traditional radio or pop-up campaigns. In fact, due to the intense exposure to these methods for most of their lives, these are some of the least effective advertising techniques for the younger generations. One of the first things they do on a new device is to install an ad-blocker, after all.
The Whys
But first things first: Why is it such a popular medium? Being able to listen to the musings of one’s favorite celebrity in the middle of a gym session sure beats watching the television. You would not be hard-pressed to find people listening to podcasts in the middle of mundane tasks, from chopping vegetables to folding laundry. Podcasts are there to fill those awkward silences. With so many distractions competing with one another for our precious time, podcasts are highly adaptable to even the tightest schedules. With more listeners tuning in, podcasting carries vast amounts of potential for targeted advertising.
Naturally, the following thought is, “Why is podcast advertising different?” It appeals to its audiences for several reasons, one big one being approval. Many listeners are supportive of advertising in podcasts, as they understand that the advertising funds directly support the content they love. Furthermore, podcast hosts are known for putting unique spins on their advertisements, making them far more memorable and palatable, even entertaining. Ever listened to My Brother, My Brother, and Me? That’s a prime example of memorable advertising. In some cases, the advertisement is embedded into the podcast in a humourous manner!
Respect for the hosts is also a huge driving factor for advertisement engagement. These are people the listeners’ trust, and hearing an endorsement from them – often when the hosts have experienced the product first-hand – is much more convincing than banner advertisements.
The sheer number of podcasts means there’s undoubtedly one perfect for any industry to advertise with. The impact of an ad is also easily tracked by companies through promo code use, vanity URL traffic, and checkout surveys.
The Leap Forward
Data from several studies show how effective podcast advertising is, for these reasons and more. There’s an average of 0.06% of people clicking on banner ads, whereas 63% of podcast listeners are purchasing products advertised in shows they listen to. This is the way forward for industry advertising. Goodbye telly, hello advertising.
