As many radio companies seek to grow their podcast divisions amid the industry’s larger embrace of digital, advertisers are reaping the benefits as B2B and performance advertisers use on-demand audio to drive brand metrics.

The transition of podcasts from a direct response-focused platform to one favored by brand advertisers is evident in the shifting investment patterns. The IAB/PwC podcast ad revenue report from last year indicates that brand advertisers now dominate podcast ad spend – a significant departure from previous trends.

One of the most telling indicators of this shift is the surge in brand lift studies conducted by Nielsen. Since 2017, Nielsen has undertaken over 1,300 podcast brand lift studies, offering advertisers invaluable insights into the long-term impact of podcast advertising on brand perception.

Signal Hill’s 2024 Branded Podcast Benchmark Report revealed that 61% of listeners tended to form a more positive perception of the sponsoring brand. The report attributed this resonance to factors such as authenticity, educational value, enthusiasm, and inspiration within the content. Furthermore, entertaining and engaging podcasts not only retain listeners but also foster recommendations. Approximately 65% of listeners expressed a likelihood to tune into another episode, while 64% indicated a willingness to recommend the series.

Delving deeper into the data, it becomes apparent that podcasts consistently drive growth across various brand metrics. From awareness to purchase intent and recommendation, podcasts have proven to be a powerful tool for brand building across industries. Specifically, industries such as alcoholic beverages, personal care, and technology have experienced substantial lifts in awareness, while travel brands lead the pack in terms of purchase intent.

The effectiveness of podcast advertising is further bolstered by the positive associations listeners have with podcast content and hosts. Terms such as “interesting,” “entertaining,” and “credible” are commonly used to describe both podcast content and hosts, creating a conducive environment for advertising.

Edison Research’s 2024 Infinite Dial data reveals that podcast reach among the coveted 18-34 demographic now rivals that of TV, signaling a seismic shift in consumer preferences and media consumption habits. With weekly reach approaching 50%, podcasts have emerged as a formidable platform for engaging younger audiences and driving brand awareness.

The data paints a compelling picture of the evolving landscape of podcast advertising, highlighting its effectiveness in driving brand metrics and capturing the attention of key demographics. Pierre Bouvard discusses the studies in the latest Cumulus Media/Westwood One Audio Active Group blog.