Advertising in Podcasts
The history of podcasts is a recent history. Podcasts found their roots in radio, however, with the expansion of technology, more and more people are taking their stations on the go. From small DIY podcasts created on Garage Band to large podcast productions, this industry has grown faster than almost any other.
Let’s take a look at its history…
2001 Apple releases the iPod
2004 Adam Curry and Dave Winer code iPodder that extracts audio files and transfer them to the iPod
““All the ingredients are there for a new boom in amateur radio”
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2005 Podcast becomes the “Word of The Year”
Apple introduces podcast into iTunes
2006 Steve Job teaches a live audience on how to create a podcast on GarageBand
The first Podcast Awards are held
2007 Podcasts earn major audiences
2009 Edison Research observes that 43% of Americans have heard of podcasting
2009-2011 The popularity of podcasts plateau
2014 Monthly podcasts listeners DOUBLED. 39 million Americans to 90 million
2017 Apple’s Podcast Analytics feature is released.
2019 165 million people have listened to a podcast
2019 Spotify becomes a large podcast platform
2020 SiriusXM joins the podcast industry
In 2020, Spotify released the Spotify Podcast charts that allows listeners to view the top 50 podcasts on any genre.
A quick glance into the future, we can predict that podcast ad revenue will surpass $1 billion in 2021.
Advertising in Podcasts is very profitable. Unlike Youtube and TikTok advertisements that can be easily skipped, most podcast listeners fully listen to the ads embedded in their podcast. In addition, the ad will be narrated by the podcast host, someone that the audience trusts. This answers one of the most difficult questions in advertising: “how do we gain trust?” According to Webs of Influence, “[consumers] tend to trust people who are likeable, credible and similar to [themselves], and judge homophilous sources of information as more trustworthy and reliable” Advertisers believe that, because information is being shared by a trustworthy source, their podcast hosts, consumers will trust the product being advertised.
Podcast advertisements are even more impactful than you would think! In a study done by The Fast Company conducted a study and learned that out of the 300,000 listeners surveyed, 63% had bought something advertised by a podcast host. With these results, podcasters can charge a large price for a spot. Podcasts also advertise to a wider audience than any other platform. Their listeners are younger and diverse.
Podcasts can now be searched through voice commands on Google and Alexa devices. This makes it easier for listeners to receive your information more quickly. There has also been a greater focus on podcast SEO. Through the optimization of key words and new transcribing of podcasts, they can be searched faster.
Despite the accessibility and profitability of podcast advertising, advertisers can make several mistakes that should be avoided.
To monitor how effective an ad is, advertisers should create a custom url or promo code for podcast listeners. Targeting is also another crucial part of podcast advertising. Podcast are diverse in subject matter, therefore it is important to understand a podcasts audience and connect a brand that reflects the podcast subject matter. If the podcast doesn’t perform well, targeting might be to blame.
In conclusion, podcasts are gaining popularity quickly. Their growth has skyrocketed since 2014. This platform is both effective and profitable for advertisers. Listeners are more likely to purchase a product from a podcast advertisement because they trust the host. If the ad is targeted to the correct podcast audience, their sales could rise exceptionally. As podcasts grow in popularity, I would recommend advertisers to consider the podcast industry as a large player in their marketing mix for the future.
Sources:
https://redcircle.com/blog/the-most-common-mistakes-marketers-make-in-podcast-advertising/
https://innovation.media/magazines/podcasts-are-hottest-new-profitable-advertising-and-content-vehicle
https://podcasters.spotify.com/blog/get-discovered-on-spotifys-new-podcast-charts
https://www.voices.com/blog/history-of-podcasts/
Webs of Influence: The Psychology of Online Persuasion by Natalie Nahai