The Emerging Channel of Podcast Advertising
Part of podcasting’s appeal is the relatively low startup costs, combined with high engagement rates from an active listener base. And with 850,000 active podcasts and 104 million Americans listening to them regularly, Podcast ads have proven to be an excellent channel for brands to connect with target audiences.
Podcast ads are for the most part, native – they are seamlessly integrated into the natural flow of a show. That, combining with an extremely engaged audience and a personal touch added by the host, is the perfect formula for a highly effective advertising campaign.
According to Kantar, ads in podcasts contributed to increased brand awareness at a nearly identical rate to other channels, including traditional radio and display. However, when looking at metrics such as brand favourability and purchase intent, podcasts emerged with lifts of 37% higher than other media channels.
Data from eMarketer suggests that 54 percent of podcast listeners are in fcat either somewhat, or much more likely, to consider buying from a brand after hearing its advertisement on a podcast. And the latest edition of the IAB Podcast Ad Revenue Study found that podcast advertising revenues in the United States are projected to exceed $1 billion in 2021.
The Power of Branded Podcasts
Branded podcasts are created by, or in conjunction with brands; they can either develop their podcast or partner with podcasting companies to produce audio content.
This channel allows the brand to speak directly to the audience with a topic relevant to them. Audio is a long-standing avenue of communication for a reason; it’s the only form of content that people can consume without staring at a screen. Brands have a chance to engage with the audience whilst they are experiencing everyday life: cooking dinner, driving to work, or even going for a run.
There is a wrong impression that people are more likely to tune out when they aren’t visually engaged. According to Podcast Insights, 80% of podcast listeners listen through most or all of podcast episodes, and they regularly stay engaged for more than 30 minutes at a time. Much longer than they do with the average YouTube video or blog.
This close, one-on-one time spent with a brand makes listeners perceive it as more likable and trustworthy, increasing brand awareness and helping turn listeners into consumers. In 2019, 17% of marketers added podcasting to their content marketing strategy.
T.G.I.M by Shopify
Shopify, a cloud-based, multichannel commerce platform, has joined the growing list of companies turning to podcasts. The brand runs an audio podcast for entrepreneurs called TGIM (Thank God It’s Monday), which includes inspirational stories about entrepreneurs that turned their ideas into successful startups.
“We’d be foolish to ignore the rise of podcasting. In a lot of ways, audio makes more sense than text for a lot of people. It’s the most portable content format – you can listen in your car on your commute, at the gym, or walking the dog, it goes wherever you go. And many people just prefer audio as a learning format,” said Mark Macdonald, Content Marketing Manager at Shopify
Shopify also wanted to avoid the traditional advertising route to lure new businesses: “We would much rather be the content than the advertising…by creating something that people want to consume, rather than interrupting with something they want to ignore,” he said.
With the podcast, Shopify aims to reach entrepreneurs before they implement their ideas, so that these users can then consider using its Ecommerce platform further down the road.
“They may not be ready to start a business just yet, but maybe they’re thinking about it… We want to give them a way to begin a relationship with our company that allows them to get value and when they’re ready to be able to go down the journey of starting a business, they already know us,” stated Macdonald.
If your brand hasn’t yet started on a strategy towards podcasting, we would love to hear from you and help you plan how to best reach a diverse and multicultural audience.