According to this week’s Cumulus Media | Westwood One Audio Active Group blog post, when it comes to podcast revenue, brand spending now represents 61% of ad dollars, surpassing direct response (39%). This data comes from the Interactive Advertising Bureau’s eighth annual podcast revenue report. The blog post notes, “Podcast advertising revenue was born thanks to direct response
advertising. In 2016 and 2017, direct response represented the vast majority of podcast advertising. From 2018 to 2021, the proportion of podcast ad spend was equally split between brand and direct response.” The post says there are four major implications of the shift to podcast brand advertising: 1) Targeting will become much broader: Wide campaign reach will become the priority with a goal of “being known before you’re needed”; 2) Creative will shift to become more entertaining and emotion based: The objective will be to stir passions and create positive feelings and associations with ads that people find interesting and enjoyable; 3) Brand safety and suitability measurement will become more crucial: Firms like Barometer will become powerful resources to help marketers find the right context for their campaigns with nuanced data; and 4) Measurement will focus on how well campaigns build memories to ensure brands are “easy to mind and easy to find”: Key performance indicators are brand awareness, brand consideration, and brand preference. See the complete blog here.
