What brands need to know about podcasting

While the typical model for podcasts and even traditional radio is to provide content that is free and ad supported, one new study finds that in the case of podcasts a growing number of Americans are willing to pay for the content.

by Kristina Knight

Researchers with YouGov found that about one-fifth of podcast listeners in American who have never paid for or donated money to a podcaster are, in fact, willing to pay for that content. Breaking that down by demographic, younger consumers are slightly more likely (26%) to 'intend to pay' for podcast content for the next year; about 25% of those who have income levels under $40,000 per year. Those who are 'heavy listeners' to podcast content are also more likely to pay for podcast content (37%).

More data from the YouGov report can be accessed here.

This is especially important because data out from Westwood One finds that there is falling support for ads in podcasts. The Podcast Download report found that 65% of consumers were willing to listen to 'extra ads' for their favorite podcasts (2018) but that only 60% agreed with that statement for the 2019 report. Researchers also found that almost half (41%) of podcast listeners say most ads they hear on podcasts are engaging, and that about one-third (33%) of listeners say they 'go our of their way' to support advertisers on their favorite podcasts.

Meanwhile, according to the latest numbers for Nielsen the podcasting space could be a more than $300 billion opportunity for marketers, especially auto brands. That is because of the 35 million consumers car-shopping during the initial months of the pandemic, 10 million of them were also podcast listeners.

"While podcast popularity among consumers has been growing for the past few years, its appeal among brands is accelerating, largely because of the ad engagement that the medium commands," write the report authors. "This presents marketers with significant opportunities to reach engaged car buyers. Our study this year found that 50% of internet vehicle shoppers visited a website for more information about a product after hearing about it on a podcast, which is five percentage points higher than the average podcast listener."

As to who is listening to podcasts just over half (57%) of weekly listeners who began listening to podcasts during the prior six months were women; women are listening to an average of 4.5 podcasts per month compared to 3.9 in 2017 according to Westwood One's numbers.

Tags: advertising, Nielsen, podcast advertising, podcast trends, podcasting, Westwood One Podcast, YouGov