Introduction to Podcast Advertising

If you are a listener of podcasts, you have probably heard advertisements for everything from mattresses to food delivery services. Although podcasts have existed for over a decade, many marketers are unfamiliar with the advertising opportunities associated with the medium.

Podcasts are unique in the delivery of the advertisements. Most podcast hosts read the copy points themselves and the length of time spent promoting the product varies. The audience is more engaged since they have to opt-in to the medium.

A study done by comScore found that podcast ads were considered to be the least intrusive, and listeners tend to take action after hearing an ad. NPR reports that “75 percent of podcast listeners take action on a sponsored message.”

As an advertising medium, podcasts are expected to grow exponentially. Steven Goldstein, CEO of Amplifi Media, said podcasts’ “’live reads and limited commercial loads are attractive” to advertisers. 

Advertising Market Predictions Through 2021

Every year, Price Waterhouse releases their Entertainment & Media Outlook report with advertising market predictions through 2021.

Since last year’s report, online advertising has overtaken television by about $15 billion. By 2021, the online advertising market is estimated to be 50% larger than TV and has a compound annual growth rate (CAGR) of 9.9%.

Mobile has the largest share of online ad spend and accounts for 71% of all internet consumption, as reported by Digiday. Fueled by social video, “mobile advertising is projected to grow by an annual average of 18.7% from 2016 through 2021”.  

Television advertising spend is growing slowly and is expected to reach 38.8% share of the market in 2021. Its low CAGR of 1.3% is due in part to declining viewership, a trend driven by younger demographics. Marketing Charts reports that this decline is not only due to cord-cutting but also the fact that 18-24 year olds are watching less traditional television.

With both the magazine and radio markets remaining flat, the only market expected to see a decline in revenues by 2021 is newspaper advertising. Despite loyal readership, the newspaper market revenues are expected to drop by $4.6 billion between 2017 and 2021. 

Most Improved Brands Among Millennials

In the results of a recent survey released by the public-perception research firm, YouGov BrandIndex, millennials reveal which brands were the most successful in gaining their patronage. Although some of the brands are not so surprising, others, including brands considered to be traditional, stand out from the list.

The rise of the sharing economy puts Uber at the top of the list, despite public relations woes plaguing the company. Chase also occupies the list at No. 13, prompting Ted Marzilli, CEO of YouGov BrandIndex, to say, “ethics are good, but price and convenience carry the day”.

Traditional brands can also be found in the top 20. The presence of Puma, Delta Airlines, Visa, Adidas, and Ace Hardware show the value millennials place in adaptability. However, it’s important to realize why these brands make the list. These “graybeards” so to speak, aren’t popular for their nostalgia but rather for their ability to stay relevant and adapt to current times.

Another head scratcher on the list is number five, TLC, which dates back to the 1970’s. However, the network has gone through several facelifts to evolve from an education-oriented channel to a source of entertainment filled with Honey Boo Boo and shows like, “My Fat Saved My Life”.