5 Podcast Advertising Myths Busted: What D2C Brands Need to Know

If you’re a DTC brand owner or a senior marketer, you’ve likely heard a lot of chatter about podcast advertising. But with so much information floating around, it’s difficult to separate fact from fiction. In this myth-busting blog post, we’ll debunk the top 5 misconceptions about podcast advertising and arm you with the facts you need to make informed decisions for your brand. By the end of this post, you’ll have a clearer understanding of the true power and potential of podcast advertising.

Table of Contents:

• Myth 1: Podcast Advertising Doesn’t Drive Results
• Myth 2: Podcast Audiences Are Too Small to Be Worth It
• Myth 3: Podcast Advertising is Expensive
• Myth 4: Podcast Advertising is Hard to Measure
• Myth 5: All Podcast Ads Are Intrusive and Annoying
• Comparing Podcast Advertising to Other Advertising Channels
  • 1) Podcast Advertising vs. Facebook & Instagram Ads
  • 2) Podcast Advertising vs. TikTok Ads
  • 3) Podcast Advertising vs. YouTube Ads
• Why Podcast Advertising Deserves a Share of Your DTC Ad Budget
• Final Thoughts

Myth 1: Podcast Advertising Doesn’t Drive Results

Fact: Podcast advertising has been proven to deliver a high return on investment (ROI) for brands.

• According to a 2021 study by Podsights, podcast advertising campaigns generated a 2.42x return on ad spend (ROAS) on average.
• Podcast listeners are highly engaged and often take action after hearing an ad: a Midroll Media survey found that 60% of listeners had purchased a product or service after hearing it advertised on a podcast.
• Brand recall is significantly higher for podcast ads compared to other forms of advertising, with a 2020 Nielsen study revealing that podcast ads drive a 78% increase in brand recall.
• According to a study by Acast, 95% of US listeners have taken action as a result of podcast advertising. And if you look at listeners who frequently listen to ads, that number jumps to 97%. 
• Another Study from Acast found that podcasts are the most effective short-term sales conversion medium, while also having the highest return in the long run.

Myth 2: Podcast Audiences Are Too Small to Be Worth It

Fact: Podcast listenership is growing rapidly, and niche audiences can be highly valuable.

• In 2023, there are 120 million monthly podcast listeners in the US, according to Edison Research.
• Podcast audiences are highly targeted, allowing DTC brands to reach the right people with their message.
• Niche podcasts often have highly engaged, loyal listeners who are more likely to trust and act on recommendations from the podcast hosts.

Myth 3: Podcast Advertising Is Expensive

Fact: Podcast advertising offers flexible pricing options and can be cost effective for DTC brands.

• Prices can start as low as $15 per thousand listeners (CPM) for smaller podcasts.
• Podcast advertising costs can vary depending on factors such as audience size, show popularity, and ad format.
• Customized partnerships, sponsorships, and promotional offers can help DTC brands get more bang for their buck.

Myth 4: Podcast Ads Are Hard to Measure

Fact: Advances in technology and analytics have made it easier to track the performance of podcast ads.

• Unique promo codes and vanity URLs can help track conversions from podcast ads.
• Tools like Chartable, Podsights, and Podtrac provide insights into listener behavior, ad impressions, and attribution.
• In 2021, the IAB released Podcast Measurement Technical Guidelines 2.1 to provide a standardized framework for measuring podcast ad performance.

Myth 5: All Podcast Ads Are Intrusive and Annoying

Fact: Podcast ads can be engaging, informative, and entertaining when done right.

• Host-read ads are more authentic and can seamlessly blend with the podcast content, making them less intrusive.
• Good podcast ads are tailored to the audience and the show, providing value to the listener.
• Podcast hosts can bring their unique voice and storytelling abilities to create engaging ads that resonate with their audience.
• Over half (51%) of podcast listeners agree that advertising on a podcast is the best way for a brand to reach them (Acast and Nielsen)
• 55% of podcast listeners agree that they develop a more positive opinion towards brands that have advertised on my favorite podcasts (Acast and Nielsen)
• 57% agree that listening to an ad is important to support favorite podcast hosts (Acast and Nielsen)

Comparing Podcast Advertising to Other Advertising Channels

Now that we’ve busted the top 5 myths about podcast advertising, it’s time to rethink your marketing strategy. Podcast advertising offers DTC brands a unique opportunity to reach highly engaged, targeted audiences and drive meaningful results.

You’re likely already investing in advertising channels like Facebook, Instagram, TikTok, and YouTube. But how does podcast advertising stack up against your other acquisition channels? Let’s compare and contrast podcast advertising with popular advertising platforms and highlight the unique advantages that make podcast ads worthy of a slice of your ad budget.

1) Podcast Advertising vs. Facebook & Instagram Ads

• Ad fatigue: Facebook and Instagram users are exposed to numerous ads daily, which can lead to ad fatigue and a lower engagement rate. Podcast ads, on the other hand, are less frequent and can stand out more effectively.
• Ad blockers: Social media users may use ad blockers, decreasing the visibility of your ads. Podcast ads cannot be blocked, ensuring that your message reaches your target audience.
• Trust and authenticity: Host-read podcast ads offer a more genuine connection with listeners, as they trust and respect the host’s opinion. This can result in a more positive brand association compared to the impersonal nature of social media ads.

2) Podcast Advertising vs. TikTok Ads

• Longer engagement: Podcast listeners are often more attentive, as they typically consume content for extended periods. In contrast, TikTok users tend to watch short videos, which can make it challenging to capture and retain their attention.
• Ad skipping: TikTok users can easily swipe past ads, whereas podcast ads are often seamlessly integrated into the content, making it less likely for listeners to skip.
• Targeting: Although TikTok has improved its ad targeting options, podcast advertising allows DTC brands to tap into niche audiences with specific interests, ensuring a better alignment with your target market.

3) Podcast Advertising vs. YouTube Ads

• Ad experience: YouTube ads can be intrusive, especially when they interrupt content. Podcast ads, especially host-read ads, can create a more natural and enjoyable ad experience for listeners.
• Ad skipping and blockers: YouTube users can skip ads or use ad blockers, reducing your ad’s reach. Podcast ads don’t face these challenges, as they are typically unskippable and unaffected by ad blockers.
• Audience retention: Podcast listeners are often more loyal and engaged than YouTube viewers, providing a more reliable audience base for your ads.

Why Podcast Advertising Deserves a Share of Your DTC Ad Budget

• High return on investment: As previously mentioned, podcast advertising has been proven to deliver a 2.42x ROAS on average.
• Engaged and loyal listeners: Podcast audiences tend to be highly engaged, trusting, and action-oriented.
• Niche targeting: Podcast ads allow DTC brands to reach niche audiences, ensuring that your message is relevant and resonates with the right people.
• Flexibility and creativity: Podcast ads offer a wide range of formats, pricing options, and creative possibilities, allowing you to tailor your ads to your brand’s needs and goals.

Final Thoughts

Podcast advertising offers unique advantages and complements other popular advertising channels like Facebook, Instagram, TikTok, and YouTube. By allocating a portion of your DTC ad budget to podcast ads, you can tap into highly engaged and loyal audiences, increase brand recall, and drive meaningful results for your brand. Don’t miss out on the opportunity to make podcast advertising a key player in your overall marketing strategy.