New Research Helps Brands Improve Their Podcast Advertisements

Much of this article is based on “Consumer Perceptions of Podcast Advertising: Theater of the Mind and Story Selling”, written by Vilceanu, Johnson, and Burns. If you’d like to read their full paper, published in the Association of Marketing Theory & Practice Journal, click here.

Last year, podcast advertisers spent a total of $1.33 billion, with that number expected to grow to $1.74 billion in 2022. 

It’s easy to understand why. Every month an average of 104 million Americans listen to podcasts, up from 67 million in 2017.

As podcasts continue to grow in popularity, more and more academic studies have attempted to understand the podcasting audience. For years, researchers have continued to gather evidence that podcasts are a great medium for advertisers. Published late 2021, a new study from Rowan University continues the trend.

In this article, we’ll summarize previous research about podcasting advertising, as well as highlight three key insights from Rowan University’s new paper.

Why Podcasts are Great for Advertising

Podcast listeners are ideal recipients for advertising for a number of reasons. First, 45% of podcast listeners make at least $75,000 per year, which means that podcast listeners tend to have a higher discretionary income. Which they also love to use on podcast advertisements, with more than half of listeners reporting that they’ve made a purchase from a podcast advertiser.

Listeners are also more likely than non-listeners to be active on social media, follow brands on social media, and own a smart speaker.

And to top it all off, podcast ads are really cheap, especially compared to syndicated radio or television. We’ve written a whole article diving deep into podcast ad rates, but the short version is that they cost $10-$30 per one thousand listeners. A similar 30-second radio ad can cost hundreds of dollars, depending on the market.

3 New Insights for Advertisers

Rowan University researchers polled 293 people about their attitudes and opinions around podcast advertisements. They found three key insights for advertisers who want to increase sales while still keeping podcasters and listeners happy.

1) Authentic Ad Reads Are Not Merely Tolerated, But Celebrated by Listeners

Unlike in other entertainment, podcast listeners don’t resent advertisements on principle. On the contrary, when done correctly, many podcast listeners seek out podcast advertisements because they know that’s how their favorite podcasters make money. 

The researchers also found that consumers are more likely to listen to these ads if the hosts noticeably go off script, as it adds more authenticity to the ad read.

There are a few common advertiser mistakes that induce listeners to skip podcasts. First, listeners hate when podcast ads are pre-recorded and dynamically inserted. They are also turned off by heavily repeated advertisements and ads for products that have nothing to do with the show.

All of this is to say, if your advertisements are authentic, relevant, and entertaining, you’re much more likely to successfully connect with the podcast listening audience.

2) Listeners Want a Variety of Calls-to-action

Most podcast advertisements involve a discount code to purchase a service or product. Research has shown that listeners are hungry for alternative calls-to-action that aren’t a straightforward purchase.

Rowan University’s research speculates a few reasons for this attitude, from change in disposable income after the COVID-19 pandemic to the community-based character of the podcast industry, but no matter the cause, this is a key finding.

Essentially, listeners want to contribute to the growth of brands, podcasts, and our society. Podcasts are the perfect medium for these alternative calls-to-action because podcasters have a personal relationship with their listeners. 

For example, if your brand is trying to spread the word about your non profit initiative, allow podcasters to earnestly pitch your mission to their fans. Rowan’s researchers believe that approach will be more successful than more traditional, less personal advertisements.

3) Post COVID Listening Habits are Fractured

With reduced or eliminated commute times, podcast listening has become more fractured, meaning people are more likely to listen to a podcast in smaller chunks, rather than all at once. 

For advertisers, this means groups of several pre-recorded ads played together are very likely to result in skips.

At the same time, some podcast listeners have doubled down on their listening habits, and have become even more attached to their favorite creators. 

Once again, to appeal to listeners, advertisers should encourage carefully narrated stories about brands and products in the familiar voice and style of the show hosts. 

Get Started Advertising With Podchaser Pro

If your company wants to advertise on podcasts, look no further than Podchaser Pro. 

With Podchaser Pro, you gain exclusive access to the most comprehensive podcast database, including verified podcast contact information, audience demographics for each show, a Power Score of a podcasts’ influence, and more.

Book a demo of Podchaser Pro today