Podcast Advertising in 2023: What’s Next?

As Albert Einstein once wrote: “People like us who believe in physics know that the distinction between past, present and future is only a stubbornly persistent illusion.” So what is the future of podcast advertising? Or are we already in it?

In 2020, Spotify made substantial investments in the podcast industry, acquiring leading podcasting platforms and personalities, most notably Joe Rogan and Luminary.

These aggressive moves serve as a clear indication of the rising potential of podcast advertising. But is this just a hot trend? Or is this just going to become a more and more lucrative platform for ads?

In this blog post, we’ll take a look at where we are today with podcast advertising and where it looks to be headed.

Jacqueline Foster
Demand Generation Marketing, Lever.co

We can count on them to bring new ideas to the table consistently

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Podcasts: The New Radio Ads

Podcast advertising has become a significant part of the digital marketing world. With an array of platforms and strategies available, it offers unique and promising opportunities for businesses and marketers.

Podcasts are a growing trend in the U.S.:

  • In 2006, only 22% of the adult population in the United States was aware of podcasting.
  • In 2022, this figure rose to 79%.
  • 82 million people listened to podcasts in 2021 – a number expected to hit 100 million by 2024.

From China to Chile, many countries are seeing increased popularity in podcasting:

The allure of podcast advertising lies in its digital format, offering a unique ability to create ads that are more trackable compared to traditional radio advertisements. For instance,

The integration of QR codes in podcast video formats makes advertising more measurable.

These codes can be scanned by viewers, leading them directly to specific landing pages. As your offers change over time, the landing pages can be updated, ensuring that your ad content remains fresh and relevant.

Dive Deeper: Does Podcast Advertising Actually Work?

The Superior Branding Potential of Podcast Advertising

In the world of advertising, reach is important, but it isn’t the only metric that matters. At NP Digital, a renowned digital marketing agency led by Neil Patel, they’ve discovered a unique advantage in the realm of podcast advertising.

While the overall reach of podcast advertising may not be as widespread as that of tech giants like Google Ads or Facebook Ads, the caliber of the audience you’re connecting with is, in many cases, far superior. Here are three reasons why.

High-Quality Audience

Podcast listeners are typically very engaged in the content they consume, often tuning in to long-form discussions and deep dives into various topics. This dedicated, captive audience offers a unique opportunity for advertisers. When a listener is engrossed in a podcast, they’re more likely to listen attentively to the ads and, crucially, to remember them.

Moreover, the profile of the average podcast listener is appealing for many advertisers. As reported by Patel, listeners of podcasts usually possess a higher buying power. This means they have more disposable income and are therefore more likely to spend money on the products or services advertised.

Authentic Connections

One of the standout aspects of podcast advertising is the level of authenticity it offers. Many podcast ads are read by the hosts themselves, lending a degree of trust and personal recommendation that can be hard to achieve in other advertising channels. This authenticity not only strengthens the impact of the advertisement but also translates into more effective branding.

Building Trust

By consistently advertising on a specific podcast, brands can build trust with the listeners. This is because listeners often develop a connection with the podcast host and, by extension, trust their recommendations. Consequently, repeated exposure to a brand’s message in this trusted environment can strengthen brand recognition and loyalty among listeners.

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Understanding Your Podcast Audience

Podcast listeners typically have a higher buying power, making them an ideal audience for high-value products and services.

Utilizing tools like Chartable can provide valuable insights into your podcast audience demographics, like household income, level of education, and more. They also have numerous top 200 podcasts by country, genre, topic.

Podcast listeners also tend to be well educated and have higher incomes:

Podcast listeners income

Plus, it’s helpful to know your audience’s preferences in terms of who is listening to what:

All of this information can help tailor your podcast ad content to better resonate with your audience and drive better engagement.

Dive Deeper: The Ultimate Guide to Podcast Advertising

Podcast Advertising: An Integral Part of Omnichannel Strategy

Even if direct business returns from podcast advertising are not immediately visible, it is worth integrating into your omnichannel marketing strategy:

Omnichannel marketing is simply a strategy of using multiple platforms (such as social media, apps or blog content) to give your audience a multi-channel experience. But unlike straight multi-channel marketing that uses disconnected channels, omnichannel integrates a seamless experience across various platforms.

So whether it’s podcast ads, video ads, banner ads, media ads, Google Ads, social ads, diversifying your marketing efforts will ensure that your brand reaches a wider audience.

As Patel says: “I think the branding is worth it, just like Nike, right? You buy Nike shoes, not because you did a Google search. It’s just that people are familiar with Nike, the brand.”

Dive Deeper: 5 Tips to Build a Seamless Omnichannel Customer Experience

Conclusion: The Key to Successful Podcast Advertising

Understanding that not every marketing channel needs to have a direct ROI is crucial. Some channels, like podcast advertising, can be more focused on building your brand, while others might be more suited for achieving immediate business objectives. As with all marketing efforts, the key to successful podcast advertising lies in a balanced and diversified approach.

With podcast marketing, podcast sponsorship, buying podcast ads, and podcast monetization becoming more accessible, there has never been a better time to include podcast advertising in your digital marketing strategy.

By using the right approach, podcast advertising can provide significant returns on your investment, improve your brand’s visibility, and connect you with a high-value audience.

If you’re ready to grow your brand with podcast advertising, Single Grain’s paid ads experts can help (we have several successful podcasts!). 👇

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