written by
SevenVentures
SevenVentures
Market Insights
2019-10-23

The audio revolution

The audio revolution

Research* shows that a quarter of Germans now regularly listen to podcasts. The rapid rise in podcasts over recent years is a true revolution in the way we receive information. For advertisers the podcast is also an effective medium for reaching a very unique group of people. Let’s look at why.

First, the numbers. According to Apple statistics, there are now 525,000 active podcast shows with more than 18.5 million episodes. Alle Wege führen nach Ruhm, #GNTM, Paula Kommt: most of us now have our own favourite podcast on series download. And the number of podcast listeners is growing:

Source: Statista

Although a small number when compared to TV, Podcast listeners are an extremely attractive group for advertisers. 71% of all podcast listeners are between 14-49 years, they have high income, high education levels and are tech savy. In addition, podcast listeners are normally extremely hard to reach from a online marketing perspective. 90% have streamed videos ad-free in the last month and while they are constantly online, 70% use ad-blockers. Comparatively, 82% of podcast listeners state they do not skip through the ads on podcasts.

Where listeners go advertisers will follow and podcast advertising spend is expected to double to $1.6 billion by 2022. With an audience so large, the surge in podcast advertising comes as no surprise. But does it produce return on investment? Research is limited, however Acast recently published a study that revealed a staggering 76% of UK podcast listeners say they have acted on a podcast advert or sponsorship message. This is a number worth taking notice of.

Why does podcast advertising offer so much potential? Perhaps the fact that, due to the short length of a podcast episode, only a small number of brands tend to be advertised and listeners are able to maintain their focus during the ads? Perhaps because one of the most popular forms of advertising in podcasts, the native ad where the host himself integrates the brand message into the conversation, means that the listener is more likely to trust the message? After all they have purposely sought out and downloaded a conversation with this person and if it is integrated into the episode it allows the host to improvise messages which makes the ad seem like less of a paid endorsement. Maybe because podcasts are usually conversations between only one or two people the listener feels like they are actually part of a private chat? Perhaps because podcasts tend to be heard while the listener is doing other activities like eating, cleaning or driving and many people listen to them on smartphones which means it is easy to combine episodes with life’s other activities?

What is clear is that podcast advertising is a unique medium for targeting an attractive target group. This in itself should be a big enough incentive to consider it for your brand awareness marketing plan.

Listen to Dr Jens Pippig‘s podcast Curious About for entrepreneurial insights and interviews with hidden champions and read here for more information on podcast marketing at ProSiebenSat.1.

*https://de.statista.com/themen/4343/podcasts/

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