Advertiser Perceptions: Podcast Advertising Consideration And Spending Intention Grow To Nine-Year High Among Agencies And Marketers
Click here to view or download the slides.
Click here to view a 9-minute video of the key findings.
In September 2015, the Interactive Advertising Bureau (IAB) held its first ever “Podcast Upfront Showcase.”
The objective was to provide “advertisers and media buyers with a preview of the latest in innovative podcast programming from some of the biggest names in the digital audio arena. The event aims to educate and raise awareness around the power of podcasts as a valuable platform to reach consumers.”
In advance of the first IAB Podcast Upfront in 2015, the Cumulus Media | Westwood One Audio Active Group® commissioned Advertiser Perceptions to study agency and brand sentiment on podcast advertising. For the last nine years, the study has been reprised annually to track buy-side podcast advertising consideration and intention.
The latest study, conducted in June 2023 with 302 marketers and media agencies, reveals advertiser/agency interest in podcasting has reached a nine-year high.
Agency/advertiser interest is significant at every stage of the podcast ad purchase funnel; Spending intention has grown 6X since 2015
In 2015, only 10% of brands and media agencies indicated they intended to advertise in podcasts in the next six months. Flash forward to June 2023: 58% of brands and agencies say they would definitely advertise in podcasts within six months, a 6X increase.
Currently,
- 77% of media agencies and brands have discussed podcast advertising for a potential media investment.
- 62% are considering advertising in the next six months.
- 58% say they definitely would advertise in the next six months.
- 58% say they are currently advertising in podcasts.
Eight out of ten marketers and media agencies say they have discussed podcast advertising for potential media investment
Advertisers and agencies were asked, “Have you and your colleagues discussed podcast advertising for potential media investment?”
Discussion about podcast advertising among brands and agencies surged from 2015 to 2019. The pandemic caused a two-year dip in brand/marketer conversations about podcast investment. In 2022, those discussions roared back.
Podcast advertising consideration surges to a nine-year high: 62% of brands and agencies say they are likely to consider advertising in podcasts
Advertisers and agencies were asked, “How likely are you to consider advertising in podcasts in the next six months?”
The growth in podcast spend consideration from 2022 to 2023 (51% to 62%) was the biggest jump in many years.
Podcast spending intention jumps to 58%, a nine-year record
Advertisers and agencies were asked, “How likely are you to actually advertise in podcasts in the coming six months?”
Six out of ten brands and their media agencies say they are very likely “to actually advertise in podcasts in the coming six months.”
Nearly 60% of agencies and advertisers currently advertise in podcasts, a nearly 4X increase since the first IAB podcast upfront in 2015
Advertisers and agencies were asked, “Do you currently advertise in podcasts?”
The proportion of agencies and advertisers advertising in podcasts steadily grew from 2015 to 2019. The 2020 pandemic year represented a step back. By 2021, podcast advertising swung back on its prior upwards trajectory. The largest year-over-year increase in number of marketers advertising in podcasts occurred between 2021 and 2022 (45% to 61%).
Advertising Perceptions: Nine years of podcast advertising discussion, consideration, spend intention and usage
Here is one-page, nine-year trend of marketer and media agency sentiment on podcast advertising.
Brands might feel they are in the podcast pool but they are just sticking their toe in the water
While a large number of advertisers say are using podcasting, podcast budgets are microscopic.
Magellan finds new podcast advertisers adhere to the “spray and pray” school of tiny spend. In Q2 2023, the 2,465 new advertisers to podcasting spent only an average of $18,000.
$18,000 only buys 900,000 impressions, nowhere near what’s needed to grow a brand and generate sales effect. 900,000 impressions are way below what’s needed to run an Upwave brand effect study which requires 5 million impressions.
“Arnie Semsky’s 5% solution”: It is time for brands to get serious and allocate 5% of digital budgets to podcasting
Arnie Semsky, legendary BBDO media chief, created “the 5% solution.” He recommended brands devote 5% of media budgets to the emerging cable ad medium in order to generate meaningful impact.
While it is encouraging that marketers are using podcast advertising, the focus must now shift to meaningful investment.
At the dawn of cable network advertising, legendary BBDO media chief Arnie Semsky created the “5% solution,” which stipulated that brands devote 5% of media budgets to the nascent cable medium. Semsky reasoned 5% was enough of an allocation to generate meaningful impact.
Semsky was prescient. His brands hugely benefited from taking an early, bold, and strong position in a growing new medium, a lesson for the marketers of today.
Key takeaways:
- Agency/advertiser investment interest is significant at every stage of the podcast ad purchase funnel; Spending intention has grown 6X since 2015, according to Advertiser Perceptions
- Eight out of ten marketers and media agencies say they have discussed podcast advertising for potential media investment
- Podcast advertising consideration surges to a nine-year high: 62% of brands and agencies say they are likely to consider advertising in podcasts
- Podcast spending intention jumps to 58%, a nine-year record
- Nearly 60% of agencies and advertisers currently advertise in podcasts, a nearly 4X increase since the first IAB podcast upfront in 2015
- “Arnie Semsky’s 5% solution”: It is time for brands to get serious and allocate 5% of digital budgets to podcasting
Click here to view a 9-minute video of the key findings.
Pierre Bouvard is Chief Insights Officer of the Cumulus Media | Westwood One Audio Active Group®.
Contact the Insights team at CorpMarketing@westwoodone.com.