Study: Brands Are Safer Than They Think with Podcast Advertising
A new study conducted by Alter Agents – an independent market research consultancy – in partnership with Audacy reveals that consumers are highly accepting and open to podcast advertising despite persistent brand concerns about suitability and safety. The research finds that podcasts provide a safe advertising environment for brands, with eight in 10 consumers finding branded podcast messages suitable as long as they are contextually relevant, even when it comes to controversial content. The study identified key themes regarding brand safety and suitability in podcast advertising for marketers and consumers. The B2B community listed controllability, genre-specific myths, trade-offs of produced vs. host-read advertisements, and the complex categorizations of podcasts. Consumers indicated ads must be a good fit within the content, hosts must be authentic, and controversial topics in the content can be acceptable and even enjoyed as long it is not defamatory towards one group. Brand fit is not an issue for listeners. Few say they have heard ads unsuitable for the podcasts they listen to but are more likely to call out ads sounding too much like a sales pitch or not being more native to the podcast style as reasons for unsuitability or poor fit. Foul language is not a top reason for not listening to a podcast, but where content or hosts cross the line is through racist statements. In fact, foul language is accepted in many genres, especially comedy, entertainment/pop culture, music, and true crime.
PricewaterhouseCoopers LLP, “quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2025.” The study says the top revenue-generating content genres are Sports (15%), Society & Culture (14%), and Comedy (14%) and have taken the lead from News and Political Opinion content (down from 19% to 12%). IAB VP, media center Eric John says, “In-person sports, lifestyle events, and in-store shopping have come back in a big way, taking the lead from news which held the top revenue genre spot since 2018. Podcasting revenue naturally reflects that shift in consumer behavior and it will be interesting to watch how the balance changes going forward.” He adds, “Both mass and niche advertisers like the audiences, targeting, and ROI along with the brand-safe and suitable environments that podcasting offers.” 