WWO: Podcast Advertising Hits 12-Year High
Today’s blog post from Cumulus Media | Westwood One’s Audio Active Group looks at the 12-year trend of podcast advertising. The post notes that in advance of the first IAB Podcast Upfront in 2015, Cumulus commissioned Advertiser Perceptions to study agency and brand sentiment on podcast advertising. The most recent, conducted last month with 300 marketers and media 
agencies, reveals advertiser/agency podcasting discussion and spending intention has hit a 12-year high. Some of the key takeaways include: 1) Nine out of 10 marketers and media agencies say they have discussed podcast advertising for potential investment; 2) Podcast advertising consideration surges to a 12-year high: 75% of brands and agencies say they are likely to consider advertising in podcasts; 3) Podcast spending intention jumps to 74%, a 12-year record; 4) 76% of agencies and advertisers currently advertise in podcasts, a 5X increase since the first IAB podcast upfront in 2015; and 5) “Arnie Semsky’s 5% solution”: It is time for brands to get serious and allocate 5% of digital budgets to podcasting. See the full blog post here.
study of 303 media agencies and marketers conducted in August 2024 found the perceived combined audience share of Pandora/Spotify is 43%, much greater than the perceived share of AM/FM radio (27%). In reality, “According to the Q1 2025 Share of Ear, AM/FM radio’s persons 18+ share of ad-supported audio (68%) is 14 times larger than ad-supported Pandora (5%) and ad-supported Spotify (5%).” The data also reveals that podcasts take the second-place spot with a 20% share. Ad-supported Pandora (5%), ad-supported Spotify (5%), and ad-supported SiriusXM (3%) lag distantly. 
Advertiser Perceptions surveyed 301 marketers and media agencies on the sales generated by each of the five sales drivers and as they have for the past six surveys, those surveyed had an average % of perception of creative’s contribution toward driving sales around 20%. But the reality according to one study is that creative’s contribution toward driving sales is actually about 49%. Quatical principle Marc Binkley says, “Creative is the closest thing we have to a silver bullet… it’s a way to supercharge budgets. Emotional, well-branded creative is a way to be more memorable. The goal isn’t just awareness, it’s being memorable in as many buying situations as possible.” 
One out of three American AM/FM radio listeners are reached monthly by AM radio. From the Edison study: 1) AM/FM radio dominates listening in the car with an 88% share of ad-supported audio; 2) AM/FM radio’s near-90 share of in-car ad-supported audio has been steady as a rock for the last six years; 3) AM/FM radio’s ad-supported shares in the car are dominant across all demographics, even among 18-34s; and 4) ‘Perception’ vs. ‘reality’: Agencies and advertisers underestimate AM/FM radio shares and overestimate Pandora and Spotify audiences (‘Perception’ from Advertiser Perceptions data). MRI Simmons shows Ford owners represent 20% of all U.S. AM radio listeners and are more likely to listen to AM radio. Cumulus chief insights officer Pierre Bouvard comments, “AM stations serve very unique, targeted constituencies and represent many languages and voices. As automobile manufacturers consider eliminating AM radio, it’s important to underscore that the AM dial is one of the most diverse media platforms in the world. Why would we eliminate this variety from the car?”