Podcasts: The New Wild West

The IAB expects podcast advertising to exceed $500 million in 2019, which represents growth of about 65% in just two years. It’s a fast growing medium with limited standardization where only a small handful of categories have had ongoing success.

Part of podcasts’ allure (to brands) is the quality of its core demographics, which skew ages 25 to 40 with higher income levels and education. This is often an audience that’s tough to reach and they’re not typically watching a lot of TV.

The other allure is credibility. Most listeners are highly engaged when tuned into a podcast and usually don’t mind hearing ads. Ads tend to be kept to a minimum and are relevant to the program’s content, often via host-read ads. Trust and brand recall for podcast ads is also high when compared with other ad formats.

Based on data from nearly 50 custom studies Nielsen has conducted over the last 18 months, podcast advertising has demonstrated that it can move the needle on many important key metrics like awareness, ad recall, affinity, recommendation and purchase intent.

US Podcast Penetration

Podcast Ad Effectiveness

Why Its Hot?

The podcast advertising market in the US is poised for strong continued growth in listenership and ad dollars, but without meaningfully addressing current friction points, it might remain a niche advertising vehicle primarily suited to direct-response advertisers in the near term.

The ability for sellers and buyers to talk the same language is holding back the value proposition for brands more than anything else. There is a question of scale and fragmentation still – with only a few programs reaching the masses and many more reaching only smaller, niche audiences at far less frequent intervals than other media.

Newspapers existed before the Audit Bureau of Circulation, Radio existed before Arbitron, TV existed before Nielsen and the internet existed well before the IAB and comScore.  Podcasts are still living in this dawn of pre-standardization and governance, and how downloads and audience size is measured from one show or network to another is varied, making it harder for larger brands to execute – and measure – any meaningful effort.  Anyone want to start up an independent 3rd-party measurement company?

sources:

https://www.nielsen.com/us/en/insights/news/2019/how-podcast-advertising-measures-up.html

https://content-na1.emarketer.com/podcast-advertising-2018?li=1

Instagram: A Platform for Music Enthusiasts

Nielsen conducted a study to quantify Instagram’s impact on music sales and found that Instagram users spend 42 percent on music, tickets, and merchandise compared to the U.S. population averages. Other stats revealed that Instagram users spent more hours listening to music than average for the U.S. and were also more likely to listen to pop. Interestingly, Instagram Music fans also were twice as likely to pay for streaming music. Find more cool stats around this key audience in the article!

Nielsen-Instagram-Infographic-1-bb2

Why It’s Hot: Brands with a target that index high in music or attending live events should look to Instagram as an effective channel to reach and engage with these consumers.

While consumers tune in to TV often, they mentally tune out, quickly

On average, television holds a consumer’s attention only 39% of the time — a rate that pales in comparison to the attention rates that laptops (70%), tablets (76%) and smartphones (77%) command. That’s according to a new report from Nielsen and YuMe, a digital video ad tech firm that commissioned the study.

nielsen attn to tv

Over a two-month period, Nielsen and YuMe conducted in-lab observations on 200 consumers in Las Vegas. The consumers were told to engage with any of the devices (TV, smartphone, tablet and laptop) as they would at home for 20 minutes, and their actions were recorded. Nielsen and YuMe ended their experiment with 50 hours of video footage, and they claim the footage was then analyzed “second-by-second” to measure consumer attentiveness. The full study will be released later this week.

Why It’s Hot: Many marketers’ channel plans continue to be television dominant, even as consumers continue to shift viewing time toward other screens. Studies like this are proving that, in addition to the purchasing efficiency of digital video (particularly for longer spots), this developing channel does a better job of capturing consumers’ attention with programming as well as advertising. While digital video doesn’t offer the penetration of TV yet, and therefore isn’t a replacement, it has demonstrated that it can produce better returns for many marketers.