Podcasts came back from the dead , grew up, and became a fad. Even with confinement and movement restrictions during the pandemic months, podcasts have continued to hold their golden moment. Russian Federation Email List Audio listening has exploded , also driven by the growth of other related formats, such as audiobooks. Audio is everywhere and reaching more and more consumers, but what are brands doing with it? Analysts are clear that audio is already an opportunity, one that marketers should use and keep in mind. Some companies have already entered the audio market, creating their own branded podcasts and trying to position them in the war to connect with consumers via content marketing. But what is happening with advertising?
The reality of podcast advertising is complex. As podcasts are becoming increasingly popular and potential and more advertisers are aware of this, advertising prices keep rising.
Their CPMs are at all-time highs , with an average global growth of 8% in podcast ad prices. This is positive data for creators of sound content and one that shows the growing interest in these types of formats, but this is not the complete picture. At the same time, and it might almost seem paradoxical, podcasts are not being fully used by brands. Savvy marketers are getting the hang of it, but the ad industry in general still has a long way to go.
A study from early summer already indicated that in Europe there is much to be exploited in the podcast industry, with a lot of ground to be used by advertisers compared to what they do in the United States. Still, the situation is problematic on a much more general level. The investment does not add up to the final weight
A recent study by Warc and Heart Media concludes that there is still a problematic separation between the use that consumers make of audio and the investment that advertisers make in advertising formats on these platforms.
Their data indicates that the average time that consumers spend on audio is already 31% of all their media time, but only 8.8% of the advertising budget allocated to media goes to this format.
In fact, the problem is not only that there is a gap between investment and weight of the format, but that some brands are, directly, losing the window of opportunity. 25% of the brands analyzed are completely missing out on audio opportunities. They are not spending a single penny on audio advertising.
The Warc study makes it clear that the most appropriate strategy is the one followed by those who have dubbed the “champions through platforms”, those marketers who understand the full potential of audio and who are also capable of optimizing their advertising investments to let them touch the different platforms. They know how to distribute their assets and play all the clubs.