Close up of a studio microphone in focus, blurred background of a computer
Source: iStock | demaerre

Seventy-five percent of podcast listeners value podcasters’ influence more than they value the influence of social media influencers (15 percent) and TV/movie celebrities (10 percent), according to a study from MAGNA Media Trials in collaboration with Vox Media.

Podcasts’ popularity can be traced partly to accessibility as listeners don’t have to stare at a screen. A YouGov survey of U.S. adults found the most common podcast-listening occasion to be doing household chores, cited by 49 percent; followed by commuting to/from work, 42 percent; and working out and cooking/baking, both at 29 percent.

Finally, podcasts stand out for their ability to support self-fulfillment. In MAGNA Media Trials’ survey, 79 percent of listeners turn to podcasts to motivate them to be better versions of themselves.

The intimacy and diverse content translates into a more memorable and effective ad experience. The study found two in three listeners pay more attention to podcast ads than those they come across elsewhere (e.g. TV, social media, etc.).

Nielsen Podcast Ad Effectiveness insights found that podcast ads drive an aided brand recall rate of 71 percent, while 56 percent of podcast listeners say they pay more attention to ads read by the host(s).

Like other digital mediums, podcast usage and advertising growth slowed last year after a pandemic boost. EMarketer also noted that while consumers ages 25 to 34 make up the largest listener demographic, listenership among 18-to-24-year-olds falls off steeply and figures are even lower among 12-to-17-year-olds.

Interactive Advertising Bureau (IAB) found podcasting ad revenue grew 26 percent year over year in 2022, two times faster than digital advertising overall. Ad revenues are expected to more than double to $4 billion by 2025.

“It’s clear now that the growth of podcasting was not just a temporary shift in behavior,” said David Cohen, CEO, IAB. “The diversity of voices and content — often targeting underserved audiences — is driving more listenership and more time spent, and that is attracting more advertisers.”

BrainTrust

“Until podcasters figure out how to force people to disable the fast-forwarding option I don’t see them being a good advertising value for retailers across the board.”

Georganne Bender

Principal, KIZER & BENDER Speaking


“As an avid podcast listener, I will admit that a “personal” recommendation from a host I trust has convinced me more than a few times to follow up on a product and purchase.”

Allison McCabe

Director Retail Technology, enVista


“The data for podcasts are impressive. Those who tune in are an excellent target for advertising.”

Gene Detroyer

Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.

Discussion Questions

DISCUSSION QUESTIONS: How would you rate the value of podcasts as an advertising vehicle for retailers? Is podcast listenership growth plateauing soon or far from reaching its peak?

Poll

Is advertising on podcasts more effective or less than on other forms of media (radio, social or TV mediums)?

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24 responses to “Do Ads Work Better On Podcasts?”

  1. Shep Hyken Avatar
    Shep Hyken

    Look at the numbers. They come from credible sources. If those are the results you’re looking for, then there is tremendous value in advertising on podcasts. Many podcast listeners are loyal to their favorite shows. If a podcast has the audience you’re looking for, then it’s up to you to decide if the numbers work.

  2. Lucille DeHart Avatar
    Lucille DeHart

    Like everything else, the effectiveness of media needs to be reviewed under the lens of your marketing goals. Podcasts would not be my first pick for awareness, but would be for segment marketing and consideration within niche targets. I agree that the captured attention of the listeners is a huge benefit with multi-screen distractions.

  3. Gene Detroyer Avatar
    Gene Detroyer

    The data for podcasts are impressive. Those who tune in are an excellent target for advertising.

    I hope the advertising community doesn’t read the data because the last thing I want in my podcasts is to listen to ads. I can’t think of a podcast I listen to where I would put up with ads. I will find another since there are more good podcasts I would like to hear to than I have time.

    Are they peaking? Time is finite.

  4. Peter Charness Avatar
    Peter Charness

    As long as marketing is willing to value a small quantity of very targeted eyeballs (or in this case ears) and not get hung up in the magnitude of numbers, there is nothing like a well targeted communication.

  5. Keith Anderson Avatar
    Keith Anderson

    Peer influence and social proof have been acknowledged for over a decade as one key source consumers turn to for information about retailers and brands. I wouldn’t put podcasts on even footing with, say, word-of-mouth or ratings and reviews, but they’re obviously much more directly manageable.

    I do get the sense that engaging with the broader “influencer” trend is meeting with more success among brands than podcast advertising.

  6. Katie Thomas Avatar
    Katie Thomas

    The challenge I am beginning to see is that the more data that comes out on podcast ad effectiveness, the worse ads are getting on actual podcasts (as a listener myself). For instance, I’ve read that starting an episode with ads is most effective. Well, now all my podcasts do it and it’s incredibly annoying – get to the content please 🙂

    As with many things, I believe the success of podcast ads is real, until it goes way too far – and we are already on that path.

  7. John Lietsch Avatar
    John Lietsch

    Anytime you have an engaging speaker and a captive audience there will be increased success in advertising. This isn’t necessarily a function of podcasts as much as “engagement” so it would be a mistake to ignore the advertising opportunity. I’m not sure podcast listenership is plateauing but, ignoring pandemic data, I think it will rise more slowly over the next several years. However, a hotly contested, dirt throwing, polarizing Presidential campaign might serve as a second pandemic for the medium so stay tuned (pun intended).

  8. Allison McCabe Avatar
    Allison McCabe

    As an avid podcast listener, I will admit that a “personal” recommendation from a host I trust has convinced me more than a few times to follow up on a product and sometimes purchase. Yes, there is a lot of noise in the world of podcasts, but they are here to stay – covering anything from pop culture and politics to cold cases. Marketing analysis of effective advertising methods should allow for continuing growth in results unless there is a huge shift to paid podcast subscriptions where the selling point is “ad free”. Don’t think that will happen.

  9. Georganne Bender Avatar
    Georganne Bender

    While Baby Boomers weren’t listed as part of the EMarketer demographic mentioned in the article, this Boomer listens to podcasts all the time. I love the diversity of topics; what I don’t love are the commercials.

    Unlike broadcast and cable networks, where we are forced to sit through the commercials when watching on demand, podcasts allow listeners to fast forward through every one of them. Until podcasters figure out how to force people to disable the fast-forwarding option I don’t see them being a good advertising value for retailers across the board.

    1. Gene Detroyer Avatar
      Gene Detroyer

      If a podcaster figures out how to force people to listen to an ad, will the listener drop that podcast and go to another?

      1. Georganne Bender Avatar
        Georganne Bender

        This one will.

  10. Brandon Rael Avatar
    Brandon Rael

    The industrial advertising complex has been reimagined in the digital age. With content production moving to TikTok, YouTube, podcasts, brands, and retailers always pursue the customer and go to where they are. As Scott Galloway shares, advertising is a tax the poor and the technologically illiterate pay. This ultimately leads to consumers paying for Spotify, YouTube Premium, etc., to avoid advertising altogether.

    However, a recent phenomenon is that advertising is migrating to the podcast circuit. While it’s a revenue-producing opportunity for the content creators, there is a delicate balance in striking the right message so it does not come off as spam and a relevant ad complementary to the podcast and content creator’s brand messaging. The most successful ads are seamlessly woven into the narrative and are not the 15-20 seconds of ads that people want to avoid and skip on YouTube.

  11. David Spear Avatar
    David Spear

    Like any advertising medium, there is a ‘ride-the-wave’ period and I’d say Podcast ads are catching big waves right now. Soon, however, it will fade, and ad effectiveness will suffer. I’m with Katie, the ads can be annoying. I tune into the Podcast for the expert content, not the advertising.

    1. Gary Sankary Avatar
      Gary Sankary

      Agree 100%, I use the 30% skip button pretty aggressively on the podcasts I listen too. I’m sure I’m not alone.

  12. Gary Sankary Avatar
    Gary Sankary

    Podcasts enable advertisers to reach a very specific targeted audience. With the right message, it’s a good way to reach your market. The audience is likey to be small compared to other channels, but given the focus, Podcasts offer quality over quantity.

  13. Rameet Kohli Avatar
    Rameet Kohli

    The numbers show that Podcasting has become a highly popular way to consume entertainment and information. But even the coveted 12-54 demographic shows slightly over 50% monthly penetration and barely 20% for those over 55 (who have significant spending power). This tells me the foundation is solid and there’s still a huge growth upside. Oh – and it works.

  14. Mark Self Avatar
    Mark Self

    Low. First, as previously noted, you can fast forward thru the ad (my wife and I do that all the time when we are listening to a podcast). Second, just because an ad is on a podcast does not mean the podcast creators “endorse” it, and I believe consumers are not “fooled” by that. Third, there are SO MANY podcasts to choose from, and such a low barrier to entry to produce, that new podcasts tend to get lost in the sea of choices. Finally, regarding growth, I believe it has reached its peak in terms of adoption. The newness of podcast listening is long gone.

  15. Brian Numainville Avatar
    Brian Numainville

    Podcast advertising can be effective in reaching niche or specific audiences. For that it is great, but at the same time there is an ocean of podcasts. So each retailer needs to look at those that might benefit them and see if there might be a good fit.

  16. Craig Sundstrom Avatar
    Craig Sundstrom

    Curiously I didn’t see “having your podcast interrupted by a commercial” as one of the things valued. Or maybe we should make that tellingly: I’ll vote “less effective”.

  17. Mohamed Amer, PhD Avatar
    Mohamed Amer, PhD

    Podcasts are multiplying by leaps and bounds. Retailer marketers can benefit by identifying the desired podcast audiences and supporting those productions. Effective advertising must have consonance with the podcast content; it can’t be an interruption or carry dissonance for the listener. Retailers need to produce minimally invasive podcast ads that inform, educate, and entertain; otherwise, the desired audience will fast-forward through the ads, or worse, they’ll move on to another podcast.

  18. Brian Cluster Avatar
    Brian Cluster

    Retailers should evaluate podcasts for fit and opportunity for their customers and potential new customers. With 40% of NA customers (Emarketer) listening to podcasts now, there should be opportunities to reach at least one or two of your target segments of customers.

    Podcasts may continue to grow as social media becomes more controversial and political until the next election. Podcasts allow consumers to have more ownership of their individualized content versus being automatically delivered to social media feeds. If marketers have the choice to use analytics to be more precise/relevant in their advertising and cater more to the podcast listener, then podcast advertising should continue to grow in the next few years.

  19. David Biernbaum Avatar
    David Biernbaum

    Advertising can work better on Podcast because the host is able to blend the message more effectively than radio or television. However, if the host isn’t skilled enough, the message will be fast-forwarded. Hosts need to convey a very interesting message, not the same words each time, and inject personality and tone to be consistent with the Podcast theme and tone. The disadvantage is usually a much smaller audience than other vehicles, but the advantage is that targeting is much simpler and fare more effective that way. – Db

  20. Ashish Chaturvedi Avatar
    Ashish Chaturvedi

    This makes a lot of sense. The results would be much more similar if we just took out the ad part and compared podcasts to other mediums. The audience is more engaged, loyal and tends to remember and recall the content better. So, the same variance can be expected in ads showcased through these mediums. However, unlike other mediums, podcasters need to walk a fine line between the ad space/duration v/s the overall content of the podcast. Not just this, but they need to be sure whether the ad aligns with their audience’s preferences and philosophy.

  21. Verlin Youd Avatar
    Verlin Youd

    Advertising on podcasts is similar in value to other media, including social, TV, radio, and the like. It’s all about audience affinity and a message that resonates. That said, I have become very adept at the “skip forward 30 seconds” button while listening to my favorite podcasts, negating the effectiveness of the advertising on me.

24 Comments
oldest
newest
Shep Hyken
Shep Hyken
2 months ago

Look at the numbers. They come from credible sources. If those are the results you’re looking for, then there is tremendous value in advertising on podcasts. Many podcast listeners are loyal to their favorite shows. If a podcast has the audience you’re looking for, then it’s up to you to decide if the numbers work.

Lucille DeHart
Lucille DeHart
2 months ago

Like everything else, the effectiveness of media needs to be reviewed under the lens of your marketing goals. Podcasts would not be my first pick for awareness, but would be for segment marketing and consideration within niche targets. I agree that the captured attention of the listeners is a huge benefit with multi-screen distractions.

Gene Detroyer
Gene Detroyer
2 months ago

The data for podcasts are impressive. Those who tune in are an excellent target for advertising.

I hope the advertising community doesn’t read the data because the last thing I want in my podcasts is to listen to ads. I can’t think of a podcast I listen to where I would put up with ads. I will find another since there are more good podcasts I would like to hear to than I have time.

Are they peaking? Time is finite.

Peter Charness
Peter Charness
2 months ago

As long as marketing is willing to value a small quantity of very targeted eyeballs (or in this case ears) and not get hung up in the magnitude of numbers, there is nothing like a well targeted communication.

Keith Anderson
Keith Anderson
2 months ago

Peer influence and social proof have been acknowledged for over a decade as one key source consumers turn to for information about retailers and brands. I wouldn’t put podcasts on even footing with, say, word-of-mouth or ratings and reviews, but they’re obviously much more directly manageable.

I do get the sense that engaging with the broader “influencer” trend is meeting with more success among brands than podcast advertising.

Katie Thomas
Katie Thomas
2 months ago

The challenge I am beginning to see is that the more data that comes out on podcast ad effectiveness, the worse ads are getting on actual podcasts (as a listener myself). For instance, I’ve read that starting an episode with ads is most effective. Well, now all my podcasts do it and it’s incredibly annoying – get to the content please 🙂

As with many things, I believe the success of podcast ads is real, until it goes way too far – and we are already on that path.

John Lietsch
John Lietsch
2 months ago

Anytime you have an engaging speaker and a captive audience there will be increased success in advertising. This isn’t necessarily a function of podcasts as much as “engagement” so it would be a mistake to ignore the advertising opportunity. I’m not sure podcast listenership is plateauing but, ignoring pandemic data, I think it will rise more slowly over the next several years. However, a hotly contested, dirt throwing, polarizing Presidential campaign might serve as a second pandemic for the medium so stay tuned (pun intended).

Allison McCabe
Allison McCabe
2 months ago

As an avid podcast listener, I will admit that a “personal” recommendation from a host I trust has convinced me more than a few times to follow up on a product and sometimes purchase. Yes, there is a lot of noise in the world of podcasts, but they are here to stay – covering anything from pop culture and politics to cold cases. Marketing analysis of effective advertising methods should allow for continuing growth in results unless there is a huge shift to paid podcast subscriptions where the selling point is “ad free”. Don’t think that will happen.

Georganne Bender
Georganne Bender
2 months ago

While Baby Boomers weren’t listed as part of the EMarketer demographic mentioned in the article, this Boomer listens to podcasts all the time. I love the diversity of topics; what I don’t love are the commercials.

Unlike broadcast and cable networks, where we are forced to sit through the commercials when watching on demand, podcasts allow listeners to fast forward through every one of them. Until podcasters figure out how to force people to disable the fast-forwarding option I don’t see them being a good advertising value for retailers across the board.

Gene Detroyer
Gene Detroyer
  Georganne Bender
2 months ago

If a podcaster figures out how to force people to listen to an ad, will the listener drop that podcast and go to another?

Georganne Bender
Georganne Bender
  Gene Detroyer
2 months ago

This one will.

Brandon Rael
Brandon Rael
2 months ago

The industrial advertising complex has been reimagined in the digital age. With content production moving to TikTok, YouTube, podcasts, brands, and retailers always pursue the customer and go to where they are. As Scott Galloway shares, advertising is a tax the poor and the technologically illiterate pay. This ultimately leads to consumers paying for Spotify, YouTube Premium, etc., to avoid advertising altogether.

However, a recent phenomenon is that advertising is migrating to the podcast circuit. While it’s a revenue-producing opportunity for the content creators, there is a delicate balance in striking the right message so it does not come off as spam and a relevant ad complementary to the podcast and content creator’s brand messaging. The most successful ads are seamlessly woven into the narrative and are not the 15-20 seconds of ads that people want to avoid and skip on YouTube.

David Spear
David Spear
2 months ago

Like any advertising medium, there is a ‘ride-the-wave’ period and I’d say Podcast ads are catching big waves right now. Soon, however, it will fade, and ad effectiveness will suffer. I’m with Katie, the ads can be annoying. I tune into the Podcast for the expert content, not the advertising.

Gary Sankary
Gary Sankary
  David Spear
2 months ago

Agree 100%, I use the 30% skip button pretty aggressively on the podcasts I listen too. I’m sure I’m not alone.

Gary Sankary
Gary Sankary
2 months ago

Podcasts enable advertisers to reach a very specific targeted audience. With the right message, it’s a good way to reach your market. The audience is likey to be small compared to other channels, but given the focus, Podcasts offer quality over quantity.

Rameet Kohli
Rameet Kohli
2 months ago

The numbers show that Podcasting has become a highly popular way to consume entertainment and information. But even the coveted 12-54 demographic shows slightly over 50% monthly penetration and barely 20% for those over 55 (who have significant spending power). This tells me the foundation is solid and there’s still a huge growth upside. Oh – and it works.

Mark Self
Mark Self
2 months ago

Low. First, as previously noted, you can fast forward thru the ad (my wife and I do that all the time when we are listening to a podcast). Second, just because an ad is on a podcast does not mean the podcast creators “endorse” it, and I believe consumers are not “fooled” by that. Third, there are SO MANY podcasts to choose from, and such a low barrier to entry to produce, that new podcasts tend to get lost in the sea of choices. Finally, regarding growth, I believe it has reached its peak in terms of adoption. The newness of podcast listening is long gone.

Brian Numainville
Brian Numainville
2 months ago

Podcast advertising can be effective in reaching niche or specific audiences. For that it is great, but at the same time there is an ocean of podcasts. So each retailer needs to look at those that might benefit them and see if there might be a good fit.

Craig Sundstrom
Craig Sundstrom
2 months ago

Curiously I didn’t see “having your podcast interrupted by a commercial” as one of the things valued. Or maybe we should make that tellingly: I’ll vote “less effective”.

Mohamed Amer, PhD
Mohamed Amer, PhD
2 months ago

Podcasts are multiplying by leaps and bounds. Retailer marketers can benefit by identifying the desired podcast audiences and supporting those productions. Effective advertising must have consonance with the podcast content; it can’t be an interruption or carry dissonance for the listener. Retailers need to produce minimally invasive podcast ads that inform, educate, and entertain; otherwise, the desired audience will fast-forward through the ads, or worse, they’ll move on to another podcast.

Brian Cluster
Brian Cluster
2 months ago

Retailers should evaluate podcasts for fit and opportunity for their customers and potential new customers. With 40% of NA customers (Emarketer) listening to podcasts now, there should be opportunities to reach at least one or two of your target segments of customers.

Podcasts may continue to grow as social media becomes more controversial and political until the next election. Podcasts allow consumers to have more ownership of their individualized content versus being automatically delivered to social media feeds. If marketers have the choice to use analytics to be more precise/relevant in their advertising and cater more to the podcast listener, then podcast advertising should continue to grow in the next few years.

David Biernbaum
David Biernbaum
2 months ago

Advertising can work better on Podcast because the host is able to blend the message more effectively than radio or television. However, if the host isn’t skilled enough, the message will be fast-forwarded. Hosts need to convey a very interesting message, not the same words each time, and inject personality and tone to be consistent with the Podcast theme and tone. The disadvantage is usually a much smaller audience than other vehicles, but the advantage is that targeting is much simpler and fare more effective that way. – Db

Ashish Chaturvedi
Ashish Chaturvedi
2 months ago

This makes a lot of sense. The results would be much more similar if we just took out the ad part and compared podcasts to other mediums. The audience is more engaged, loyal and tends to remember and recall the content better. So, the same variance can be expected in ads showcased through these mediums. However, unlike other mediums, podcasters need to walk a fine line between the ad space/duration v/s the overall content of the podcast. Not just this, but they need to be sure whether the ad aligns with their audience’s preferences and philosophy.

Verlin Youd
Verlin Youd
2 months ago

Advertising on podcasts is similar in value to other media, including social, TV, radio, and the like. It’s all about audience affinity and a message that resonates. That said, I have become very adept at the “skip forward 30 seconds” button while listening to my favorite podcasts, negating the effectiveness of the advertising on me.