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Audio-based channels have received a real boost in recent years, not least during the pandemic. We can outline a clear trend towards more digital consumption of audio, and the podcast industry is no exception.
Podcasts are not only powerful tools for storytelling, but also as marketing devices for advertisers. When looking at the top spenders in podcast advertising, brands like HelloFresh and TanRevel are on the list. These are examples of brands that advertise through popular podcasts that reach a large number of people. This usually results in high engagement from listeners, but above all, it strengthens and increases brand awareness.
Why Are Podcasts Effective as Advertising Channels?
Advertising via podcasts can be compared to influencer marketing on several levels. Influencers build strong relationships with their followers by providing interesting and personalized content. Followers are loyal to the influencer who they normally trust. Influencers, on the other hand, have a great impact on their followers. The same loyalty and trust can be found in popular podcasts.
Podcasters are great at interacting with their listeners, seeking feedback, and creating interesting content. They often position themselves as thought leaders, ie experts in certain specific areas. As with influencers, this cultivates a sense of trust and confidence. Advertisers have a great chance to expose themselves in an environment where the audience is engaged and receptive.
Listeners spend their free time, often hours, listening to long conversations about niche topics. Many think that ads on the radio and ads in podcasts are the same thing. But it’s important to remember that podcast listeners set aside time to select specific episodes, programs or podcasts. The engagement can therefore be higher than traditional radio listening.
Statistics From the Global Ad Market
-The global advertising market for podcasts is expected to generate $1.6 billion in 2022, almost 15 billion SEK.
-Sales are expected to be twice as much in comparison with 2018.
-Podcasts may have a share of 4.5% of the global share for audio advertising.
-It is an increase of 1.9% compared to 2018
Our way of interacting takes place to a large extent with the help of audio communication. But we want to clarify that the growth of the podcast market does not mean that it’s taking over the radio market. These are still two different media in the audio market with different characteristics.
Popular ad formats
Advertising via podcasts can take place in many different ways. Some advertise in a single episode, while others advertise in multiple episodes. Some ads may be pre-recorded and played at the beginning or end of the episode, in other cases sponsored content will be created.
We have picked some of the most popular formats that we explain below. We believe that at least one of them will be familiar to you.
Pre-roll, mid-roll, post-roll
This is an ad created by the advertiser for the podcast. It is a common strategy where a short audio clip describing the product or service is played. These usually run for about 30 seconds and sound much like commercials heard on traditional radio stations. These ads are often aired before or after an episode.
This is a format where a person from the advertiser is interviewed in exchange for payment. This gives brands and companies an opportunity to show and spread their expertise and increase brand awareness. For example, if your company sells medical devices, you could pay for your CEO or an executive to be interviewed on a podcast that touches on technological advances.
This is also an advantageous strategy for the podcast that gets to create interesting interview content for committed listeners who want to learn from real experts.
With sponsored content, the podcast speaks favorably of a brand in a way that naturally blends into the rest of the content. The ad often ends with the podcaster urging listeners to take some form of action, such as visiting a web page or using a coupon code. This format can easily be perceived as product placement or Native.
If you want to try advertising via podcasts, ask yourself why it may be a good choice of advertising channel and what your campaign goal is. At Ocast, more companies start offering podcasts, both large and small ones.
We’ve also published an interview with our customer Bauer Media and their perspective on the audio market’s growth. You can read more about it here!