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  • Writer's pictureInsightrix Communities

Advertising Playing Catch-up with Podcasts

If you have ever wondered how your company can improve or beat the competition, the answer is simple, just listen to your customers more and find out what new things they are into. People's behaviors are always changing, and it wins these changes where you can get ahead of the competition and become a leader in your industry. Experience management software or market research online community software allows companies to survey or create discussions to find out what new things their customers are into.

If you ever wonder how new a trend is, just look at how much advertising money is going into that trend. If it's ultra-new, the amount is low. However, as it becomes more established that amount grows. The best time to get into a new trend is in the beginning because your reach and dollar can go way farther. Let's look at a not-so-new trend like Podcasts that are experiencing the catch-up of the advertising world.

Podcasts have been around for some time, as the medium has grown and expanded the advertising world trailed far behind. Nielsen Research has been working hard to help the advertising world catch up by creating a more effective way to measure podcast effectiveness and to help quantify the metrics of ad spends for podcasts. This has not been an easy task. Podcasts have become a booming media form for consumers and podcasters, and now the advertising world is waking up to the possibilities. In 2021 there will be over 1.7 million podcasts to choose from. While finding an interesting podcast is relatively easy, it has been difficult for companies to decide what podcast to advertise on, and how to input it into their marketing plan.

Advertising through podcasts is so attractive because the spends are much more targeted than a radio or television advertisement. With a growing interest in podcasts and such strong customer engagement and loyalty, brands can connect on a much more personal level. Nielsen has done much in the way of market research to better understand the effectiveness of this medium. Podcast advertisements especially when read by the host can truly drive consumer interest to new heights. “Nielsen’s podcast effectiveness studies have found that host-read ads drive brand recall rate of 71%.” This growing interest in advertising among podcasts is increasing and in 2021 the yearly ad spend will surpass 1 billion.

With the growing increase in podcasts, two main advertising options exist, one is to advertise with the most popular podcasts, the second is to engage with a smaller but more targeted audience. As podcast audiences have grown so have the demographics that make up those audiences. In the U.S. podcast audience diversity is growing fast. With non-white audiences growing faster than white audiences. Hispanics have flocked to podcasts more than any other ethnicity growing from 1.1 million listeners in 2010 to 6.8 in 2019. With the increased diversity of listeners and various subjects creates a vast opportunity for companies to find their target audience and advertise to them directly.

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