That’s according to a new blog posted by Westwood One’s Pierre Bouvard on the eve of the 4th annual IAB Podcast upfronts. Westwood commissioned Advertiser Perceptions to conduct its fourth annual study of brand and agency podcast spending sentiment. Here’s what they are reporting.
According to the updated study, 70% of brands and agencies have discussed the potential of investing in podcast advertising, a small increase over the prior year. Advertising consideration has more than doubled since the very first IAB Podcast Upfront in 2015 and has grown 37% to 43% from the prior year.
The proportion of brands and agencies who currently advertise in podcasting only grows slightly over the prior year, but spending likelihood surges. The number of brands and agencies currently using podcast advertising has doubled from 2015 to this year.”
According to the study, growth over the prior year (29% to 32%) was slight. Bouvard suggests that perhaps brands are waiting for stronger audience data, which podcasters have argued doesn’t really make a lot of sense, especially considering how radio’s ratings system works.
Podcasters have told Radio Ink repeatedly that downloads and listens are much stronger than radio’s “extrapolated” ratings system. And, listening to podcasts is not “background listening.” Many podcasting hosting companies are working with the IAB on ratings certification that should give them even more negotiating power with advertisers. That process is close to completion. The next task would be to get all the hosting companies to sign on, and that’s no easy task. NPR is also working on a server side ratings system for podcasting.
Bouvard goes on to say that on the spending likelihood front, fervor for podcasting is exceptionally strong. “Since 2015, brands and agencies saying they “definitely will advertise in the coming 6 months” has more than tripled from 10% to 36%. Compared to last year, spending intentions have grown strongly (27% to 36%). This growth is the strongest spending likelihood seen since 2016. This is a good time for marketers and agencies who are looking to try podcast advertising. With spending likelihood up and engagement with the medium at an all time high, everything’s looking positive for podcast sentiment heading into the IAB Podcast Upfront.”
Read Bouvard’s entire blog HERE