Nearly half of advertisers and three-quarters of ad agencies tell Kantar Media they expect to increase their podcast ad budgets in the coming year. And its research suggests there’s more than just a rising popularly at play. Those commercials seem to be better connecting with consumers than some other formats.
Kantar conducted an analysis of a dozen advertising campaigns using podcast ads across a variety of categories including automotive, consumer packaged goods, finance, technology and other brand categories. Kate Ginsburg, Kantar’s VP of Product Marketing & Innovation, says in a blog post that the findings showed podcast ads contributed to increased brand awareness at a “near identical” rate to other channels, including in comparison to traditional AM/FM radio and digital display ads. Ginsburg said that when Kantar examined the results for how podcast ads impacted things such as brand favorability and purchase intent, podcast ads had lifts 37% higher than other media channels in aggregate. “Results like these suggest that listeners are connecting well with the ads that run within podcasts and this resonance is translating to strong brand growth,” wrote Ginsburg in the post for the trade group Digital Content Next.
Kantar’s Getting Media Right study, which was released in September, showed 63% of marketers it surveyed said they planned to spend more on podcast advertising. Another 27% expected budgets would hold steady, while 10% predicted cuts. The survey shows it is ad agencies that are leading their clients deeper into podcast spending.
“As consumers are spending more time behind personal devices, podcasts aren’t just a shiny new way to spend coveted ad dollars,” Ginsburg said. “Marketers are recognizing the impact and potential of podcasts, and plan to funnel more of their budgets to podcast advertising in 2020. This intent to increase spend puts the medium just behind planned dollars devoted to online video and social, but ahead of traditional channels like radio and online display.”
With more media plans including podcasts, Ginsburg predicts podcast ad spending could easily surpass more commonly used media channels as a “relatively uncluttered” way to engage with both niche and broad audiences. And she thinks increased spending could also help better refine which type of ad format – such as live-read or pre-recorded ad – is more effective. “However, with the superior ad effectiveness seen so far for podcasts and high brand interest, the medium should be a fast-growing channel with loads of potential for media companies to deliver unique advertising opportunities to in a ‘quieter’ media environment,” she wrote.