IAB (Interactive Advertising Bureau), and Price Waterhouse Coopers (PwC) has released new research that reveals podcast advertising in the US is projected to grow as much in the next two years as it did in the past decade. The study also details trends for ad buyers, publishers, plus ad tech and data companies. What can this tell us about future trends for the Australian market?
1. The US often leads the way
A lot of the intel from this study can be applied to the Australian landscape, with the US serving as an indication of the industry’s future path. Podcast listeners have shown that—even when working from home—podcasts are a preferred medium, both in the US and Australia. Growing ad spend on podcasts will help audio platforms and producers advance their offering’s quality and technology which will benefit advertisers globally.
2. The landscape is maturing
The study reveals that "the leading audio platforms doubled-down investment in content and ad tech." Partnerships with celebrities and influencers to engage broader audiences are expected. “Advertisers are benefiting from new technologies developed to serve these marketplaces, to make podcast advertising more dynamic and measurable than ever before." said Eric John, Vice President, IAB Media Center. The space is maturing, with more opportunities for advertisers than ever before.
3. Quick lead times for ads
Messaging agility, enabled by dynamic ad insertion, made podcasting especially attractive in an unpredictable year.
The study revealed that "podcasting is an alternative to media channels with longer production/lead times during a period when marketers needed to quickly pivot messaging." Announcer-read/pre-produced ads, which also put more control in the buyer’s hand, increased share from 27% to 35% year on year. This displays an advantage over above the line advertising, allowing greater flexibility and control.
4. Unique consumer experiences
The report recommends "buyers and sellers should consider engaging with partners to co-create a consumer experience that leverages the unique properties of the format." This holds a lot of potential for media firsts and innovation, such as smart speakers that will allow consumers to hear an ad and tell Alexa to add to cart.
5. News leads
The top type of content on podcasts was news at 22%, comedy at 17%, and society/culture at 13%. The pandemic created a greater mass appetite for news, which shows no signs of slowing down, as habit and loyalty was built. Some daily news podcasts boast higher figures than news TV and print, with The New York Times claiming that The Daily now averages 4 million downloads per day – twice the figure they were touting just one year ago.
"The big takeaway from consumer behavior pre, during, and post pandemic is that podcasting has tremendous growth ahead. Consumers love listening and will integrate it into their lives wherever it fits.” says John. Ensure that you are making the most of this growing opportunity by dropping us a line, anytime.
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