The recent podcast revenue report from the IAB, in collaboration with PwC, unveiled significant changes in the podcast advertising landscape. Now as brand spending is clearly defining the medium’s advertising space, the Cumulus Media/Westwood One Audio Active Group is adding insights from across audio, including a sizable blindspot.
In a noticeable shift from 2016 and 2017 where direct response ads dominated, brand spending has surged ahead for podcasts and digital audio, capturing 61% of the market in 2023.
This evolution indicates a significant turn in how brand marketers engage with audio audiences, recognizing the power of broader campaign reach, with an underlying mission of establishing brand presence even before a direct need arises. This matches strategy with how brands have used traditional audio mediums, like AM/FM, for decades.
As podcasting becomes more personality-driven, especially in ad creative, advertisers are aiming to resonate with listeners on a deeper level. Companies like Barometer are stepping up as key players, providing marketers with detailed data to position their campaigns effectively. Measurement criteria too are evolving, concentrating more on the lasting memory an ad leaves rather than just immediate conversion metrics.
Brand-building strategist James Hurman said, “Converting Existing Demand is most efficiently achieved by tightly targeting those ‘in the market’ with rational messaging of product and price information that persuades them to choose our product over others. Creating Future Demand is about targeting broad audiences with emotional messaging, creating positive brand memories for future purchase decisions.”
This sentiment is echoed by marketing guru Les Binet, who commented, “Emotion is the most powerful selling tool we have. Emotion-based ads create positive feelings that are remembered for a very long time, making them more effective for building brands and profit.”
Meanwhile, a study by Cumulus Media and Signal Hill Insights highlighted a gap in podcast advertising. While listeners prefer amusing and entertaining ads, what they often hear are ads detailing product features. This insight presents a valuable opportunity for advertisers to bridge this gap.
Nielsen’s studies further reinforce this shift, revealing that exposure to podcast ads substantially boosts brand equity. On average, awareness grows by 12 points, while purchase intent and brand recommendation both increase by 6 points.
Jon Lombardo from LinkedIn’s B2B Institute succinctly sums up the current advertising sentiment, emphasizing, “Strong brands are not built on clicks but on memories. What’s really important in marketing is not bottom of funnel, lead generation clicks. It’s top of funnel, brand building memory.”
As brands continue to turn to audio advertising against OTA television, social media, and other channels, the brands that “show, don’t tell” may have the greatest return on investment.
