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

Recommended: “A Piece of Work”

Here’s a shameless plug for a podcast I really dig: Abbi Jacobsen’s new “A Piece of Work” podcast, a collab with WNYC and MoMA.

Read more here: http://www.rollingstone.com/culture/features/a-piece-of-work-inside-abbi-jacobsons-new-art-podcast-w494252

And listen to it here: https://project.wnyc.org/new-piece-of-work-moma-podcast/?gclid=CjwKEAjwoNrMBRD4-viTlaj42GcSJAD84Ni_ahV6_Nn_s1DD-4Ghu_OA8CVfaSjqxUpt4qPH1CZ5sxoCB-Tw_wcB

WHY IT’S HOT:

I appreciate A Piece of Work for the way it demystifies what fine art is all about. It’s incredibly accessible– even the curators she interviews are surprisingly unpretentious– which is so refreshing. Plus, her guests are great–  there is nothing not funny about Hannibal Burress talking about Duchamp’s urinal found art sculpture. As an Art History nerd I love it, but I recommend it because living in New York City it is easy to forget the incredible art all around us and A Piece of Work is not only a great podcast but a great reminder.

Serial’s Massive Success

Have you listened to the wildly popular podcast, Serial? The story is centered around the 1999 Baltimore murder of a high school student.

It’s become one of the most-talked about stories of the year, logging 5 million downloads, faster than any other podcast, according to Apple. This success has reignited chatter about podcasting, a decade after it being the most hyped format of its days.

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Why It’s Hot: 
Due to the growth of smartphones and the availability of podcasting apps, the format is regaining popularity. Market research firm Edison Research claimed in September that 1.7% of the time Americans spend listening to audio is devoted to podcasts, having noted earlier in the year that 15% of Americans – around 39MM people – said they had listened to a podcast in the last month.

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