Despite the impact of the pandemic on media consumption, podcasts have been somewhat ‘pandemic-proof’. Following an initial dip in podcast consumption in early 2020 – reflective of a shake-up of consumers’ regular routines, where they no longer needed to fill the silence of their daily commutes – loyal listeners soon found the time in their new routines to re-engage.
Whilst radio still tops the ranks for most popular audio source, there are 14.6m podcast listeners in the UK and growing, with 25% considering themselves ‘regular’ listeners. And with the majority having only listened for 1-2 years, that tally is only set to grow – to an estimated 16.8m by 2024.
Self-reported surveys show podcasts to be a highly effective media channel. In one such Nielsen study, 62% of listeners correctly recalled a podcast ad, with the same proportion considering the product as a result. Thus, podcasts attract an audience which is highly engaged, attentive and curious – all while maintaining a relatively low cost of entry both for publishers and advertisers.
In the UK and globally, podcast audiences skew male, 16-44, and with an above-average income. They are highly engaged and loyal to their favourite podcasters, but also diverse in their consumption, with 40% admitting they consume more podcasts than they did when they first started listening. Podcasts are also successful in driving time spent, with the average listener completing 80% of an episode – substantially higher than YouTube’s 50% viewer completion rate.
Taking this into consideration, podcasts appear to be a no-brainer for brands. However, until recently, the ability to target specific and often complex audiences has been a difficult task.
Whilst we know that podcasts garner a loyal following, gaining a more granular audience understanding with effective channel measurement has proven complicated. Recognising this challenge, leaders in the digital audio market have long searched for ways to make buying and measurement more seamless. Tech giants Apple and Spotify are pioneers in this space, looking to create a programmatic inventory that would enable the buying of audiences in aggregate.
In a bid to become the world’s largest audio platform, Spotify are investing heavily. By leveraging data and analytics in order to grow the monetisation of their ad ecosystem, Spotify have recently acquired Gimlet Media, Anchor and – critically – Megaphone. Through a partnership with Nielsen, Megaphone has unprecedented access to that golden nugget of audience data. This will allow Megaphone and, in turn, Spotify to use Nielsen data to target podcast audiences.
For the first time, podcast measurement can move away from monitoring downloads only, and towards a more platform-agnositc, real-time view of listener behaviour and interests. This offers not only a lucrative prospect for brands, but a more personalised and engaging experience for the listener. As they become easier to buy and measure and more embedded into consumer lives, podcasts are becoming one of the most effective media channels for agencies and brands alike.