With investors pouring millions of dollars into podcasting, the fast-rising medium is getting its close-up today (April 16) at the Advertising Research Foundation’s Audience Science Conference. Podcast advertising impact and attribution measurement are the topic for a panel at the conference where Nielsen is expected to unveil new findings about the impact of podcast ads.
Based on data from about 50 custom studies the measurement giant conducted over the last 18 months, Nielsen says podcast advertising “has demonstrated that it can move the needle on many important metrics for advertisers.” Specifically, Nielsen says podcast advertising has been found to increase key metrics like awareness, ad recall, affinity, recommendation, and purchase intent.
Among results released so far, Nielsen found many popular consumer packaged goods brands with as much as 69% top-of-mind awareness, to lesser-known brands with as little as 17% awareness. For beverage brands unaided awareness ranged from 47% to 69% and from 63% to 69% for personal care bands. Other unaided awareness scores for CPG brands were 49% for a DNA testing product, 43% for a streaming service and 27% for an online school.
Cribbing from the broadcast radio playbook, podcasters have made host-read spots one of their calling cards with advertisers. But to have maximum impact, the ads need to be carefully woven into the content of the program. Based on the podcast ad effectiveness studies it has conducted, Nielsen concludes that “brands and podcasters are doing a good job of incorporating ads into podcast content.” Sixty-four percent (64%) of respondents agreed when asked if they think the ad was a good fit with the content of the podcast. “This represents a great opportunity for brands to find shows that connect with their target audiences,” Nielsen says in a new blog post.
Nielsen’s podcast advertising effectiveness studies measure three key areas of podcast sponsorships: purchase funnel metrics like familiarity, recommendation and purchase intent; memorability or recall of the ads; and attributes and perception of both the content and advertising. The company says this has allowed it to develop podcast ad effectiveness benchmarks to provide directional guidance for individual campaign effectiveness compared to Nielsen’s averages.
The new numbers come as the Interactive Advertising Bureau expects podcast advertising to exceed $500 million in 2019, which represents growth of about 65% in just two years. “The space is going to just explode in the next few months,” Rachel Lowenstein, associate director of the Invention+ team at the Madison Avenue ad agency Mindshare said on a recent Nielsen podcast. “It’s where the internet was ten years ago. I think it’s going to be really robust space in the next few months.”