The Rise of Podcast Advertising

By: Hannah Ondeck

While there may be an ongoing argument regarding the status of television and its relevance in today’s society, there is no case against the rise of podcasts. Recently, podcasts have been used as a tool by companies to effectively advertise towards their desired target audience. 

According to The Interactive Advertising Bureau, 65% of listeners are more likely than not to consider purchasing a product that they learn about while listening to a podcast (IAB, 2016). It is safe to assume that this percentage is even higher now due to the rising popularity of podcasts. 

The high demand for podcasts can be attributed to how accessible they are. True crime fans can listen to the latest nail-biting story from anywhere just by simply using their phones. As of 2020, there were 105.6 million listeners. This number is expected to grow by an estimated 9.5% in just this year (Williams, 2020). With this ever-growing number of listeners, businesses are now more interested than ever before in taking advantage of this marketing opportunity. 

Just in 2017, podcast advertising in The United States earned $314 million in revenue, an 86% rise from the previous year at a revenue of $169 million (IAB, 2018). Because there are typically no visual elements to a podcast, listeners are hanging on to every word that is said. This helps ensure that the advertising message will not go ignored. 

A survey conducted was able to conclude that 44% of podcast listeners pay more attention to the advertisements than on any other form of media. Right now people are listening to podcasts by their favorite comedians and influencers. When someone hears a product mentioned by someone they look up to, it is more likely to catch their attention than a television advertisement slot. 

For example, comedians Bert Kreischer and Tom Segura advertise for the company Manscaped, a male grooming tool, in exchange for sponsorship. Due to the fact that their fan base is largely male, Manscaped is more likely to gain traction with this exchange. 

Podcast advertisements are either played throughout the pre-roll, mid-roll, or post-roll. While there are different variations of these advertisements, for the most part, they are either announced by the podcast’s host or are played similarly to a radio advertisement. 

Sponsorships are a leading tool used in advertising. Podcast sponsors are able to reach their target audience on a much more personal level. These messages do not have the same tone as a typical podcast advertisement. The host is able to integrate the product or service naturally, enticing the listener. 

Podcasters are more likely to advertise a product that they believe in because it is directly linked to them through sponsorship. Many podcasters use the products they advertise, increasing the popularity of the product; ultimately increasing trust with the consumers.

Works Cited 

IAB. (6 C.E., November 2018). U.S. Podcast Ad Revenues Reached Landmark $314 Million in 2017, Marking 86% Growth Year-over-Year, According to IAB & PwC Research. Business Wire (English).

The Interactive Advertising Bureau. (9 C.E., July 2016). Nearly Two-Thirds of Podcast Listeners Are More Inclined to Consider Purchasing Products & Services They Learn about During Podcasts. Business Wire (English).  

Williams, R. (2020, August 05). US podcast ad revenue to jump 45% to $1.13b next Year, eMarketer Says. Retrieved February 14, 2021, from”>xt,U.S.%20digital%20radio%20ad%20market

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