The interest in podcast advertising among agencies and brands has reached a nine-year peak, according to the latest study conducted in June 2023 by the Cumulus Media/Westwood One Audio Active Group and Advertiser Perceptions. The study, which has been tracking buy-side podcast advertising consideration and intention for the last nine years, surveyed 302 marketers and media agencies.
In 2015, only 10% of brands and agencies intended to advertise in podcasts within the following six months. This figure has now grown sixfold, with 58% expressing the definite intention to advertise in podcasts in the next six months as of June 2023. The study also revealed that 77% of media agencies and brands have discussed podcast advertising as a potential investment, while 58% are currently advertising in podcasts.
Despite this growing interest, the actual investment in podcast advertising remains small. Magellan’s Q2 2023 Podcast Advertising Benchmark Report shows that marketers spent only $200,000 per month on podcasts ranked in the top 500, with new podcast advertisers spending an average of $18,000. This level of investment only buys 900,000 impressions, far below what is needed to grow a brand or generate a significant sales effect.
The study highlights a need for brands to shift their focus towards more meaningful investment in podcast advertising. Taking inspiration from the “5% solution” created by legendary BBDO media chief Arnie Semsky, which recommended allocating 5% of media budgets to emerging cable advertising, it’s suggested that brands should now devote 5% of digital budgets to podcasting to create a substantial impact.
