Why podcasts are becoming so popular for the advertisers?
When podcasts first appeared on the scene a decade ago, they were relatively obscure. They existed in specialized sectors and had limited listener bases — an art form that was believed to be dead before it ever achieved widespread popularity. Despite this, people seem to like it, as shown by podcast popularity over the past few years.
The podcast industry is now immense and expanding; according to Apple , there are 525,000 active podcasts with more than 18.5 million total episodes available today. Only in the United States, 37 percent of Americans listen to podcasts every month, which is projected to grow by 46 million individuals over the next three years. Furthermore, most listeners are young, ranging in age from 12 to 35 years old — a group that is becoming increasingly difficult to attract through broadcast television or radio.
Podcast: The Real Potential of Untapped Advertising
Even though major marketers are buying fewer and fewer broadcast radio advertisements, audio programming is not disappearing from popular culture. Podcasts are radio’s younger twin available on-demand, and are rapidly growing across many groups, including many of those sought after by marketers.
What makes podcasts so popular? Many individuals listen to them on their smart devices such as mobile phones, which means that episodes accompany them on their morning commutes, lunchtime strolls, and night-time jogs. Furthermore, there are more than 550,000 programs available, covering subjects that cater to almost every interest. According to recent statistics, this abundance of podcast content has gained the attention of 73 million Americans, with the viewership expected to increase by 81 percent by 2022.
With such a huge audience, it should come as no surprise that podcast advertising is increasing. In 2018, advertising on podcasts produced $402 million (£331 million) in income. As a result of this fast expansion, the question arises whether or not podcast sponsorships provide a good return.
It’s essential to understand why podcasts have such enormous potential. Unsurprisingly they do provide a good return if your company understands how to make use of the channel.
Why Podcast Advertising Is Productive?
In 2017, for the first time, worldwide expenditure on digital advertising surpassed spending on television commercials. This is one reason to be skeptical of digital advertising. On the other hand, increased expenditure does not inevitably imply that it is a more successful medium. A key marketing generation, millennials are very discerning about their information and have learned to reject visual advertising. Ad-blocking software also ensures that display ads are not shown for approximately 30,1 percent of internet users.
Advertiser avoidance may be a problem for many marketing platforms, but podcasts aren’t one of them. Seventy-eight percent of podcast listeners are in favour of sponsoring their favourite shows. Why? This is because listeners draw the link that advertising finances is necessary for the content they like.
Unlike social media users, Podcast listeners don’t just accept advertisements; many of them find them memorable and inspiring. According to the Interactive Advertising Bureau’s Podcast Playbook report, 67% of the podcast listeners could recall promoted products and brands. Even more so, 61% of those who listened to podcasts ultimately purchased a product or service. For example, Farm and Ranch podcasts were sponsored by Rand World Ads, which helped the farm and ranch owners to sell their horses. Hence the Ranch World Ads benefited both the podcast industry and the ranch owners.
People are even starting their podcast sessions on social media platforms like Facebook and YouTube, indicating how big of an industry this would become in the future!
Multitasking Is Easy With Podcasting
Due to the immense amount of information available, the podcast format has grown more popular—the ability to multitask while listening to audio information. According to a recent survey, 49 percent of podcast listening takes place at home, 22 percent happens while driving, 11 percent occur at work, whereas 8 percent comes out while exercising. In most cases, the duration of a podcast allows for a more in-depth discussion of a subject or an extended dialogue between two individuals.
Another advantage of listening to podcast episodes is that could be downloaded; giving the option to the users to replay each episode multiple times. Even while listening to interview audio, it is far more convenient to choose your speed and have the option of rewinding and fast-forwarding the conversation.
Audiences may immerse themselves in subjects via podcast audio material rather than needing to set aside time to read or view a video. Likewise, podcasts provide content in smaller bite-sized pieces that are ideal for everyday commutes or hectic schedules.
When listening to podcasts via the Apple Podcasts app or Spotify, podcast listeners have the option of subscribing to their favourite programs and having each new episode downloaded instantly. This contrasts to websites such as YouTube or social media, where users must often return to the platform to view fresh material.
Dynamically Inserted Podcast Ad
A dynamic ad insertion podcast has dynamically inserting advertisements into podcast episodes which are accomplished by recording and producing a piece of audio (referred to as the “creative” from here on out) distinct from the podcast episode. Ad targeting criteria are fulfilled when the creative is “stitched” into the podcast episode file during the download, resulting in a “stitched” podcast episode file. Compared to this, a ‘baked-in’ advertisement that remains part of the original audio file and is not dynamically changed is more effective.
In comparison to baked-in ads, the benefit of using SSAI is that you can deliver different creative to listeners of the same podcast episode based on a variety of variables such as where they are located (geography), what device they are using to listen (Apple or Android), and which software they are using to listen (Apple Podcasts, etc.). Furthermore, the same creative may be used across a variety of different podcasts. SSAI may also replace an older creative with a more current one if the previous creative is no longer effective.