Brands like HelloFresh and Stamps.com are among the top spenders in podcast advertising. Apart from advertising on podcasts, these firms have one thing in common: a direct-to-consumer business model. Podcast advertising is one of the best-kept secrets in the media world, and it can be a high-converting channel for DTC brands.
“But why?” some of you may wonder. Why would a company that could communicate with its clients entirely online, from exposure to purchase, choose to advertise on a podcasting platform?
The only thing that matters is the results.
According to Nielsen, 78% of consumers don’t mind hearing podcast advertisements, and 62% would consider purchasing a product after hearing an advertisement.
Kurt Kaufer, from Forbes believe there are three main reasons why podcast advertising does so well: scale, trust and recall.
According to Edison Research and Triton Digital’s latest Infinite Dial research, there are currently 116 million monthly podcast listeners in the United States aged 12-plus. As a result of its massive audience, spending on podcast advertising has increased – global podcast ad revenue is expected to reach $1.6 billion by 2022.
Because of the size of the overall audience and the efficiency of targeting capabilities, companies normally know they will be able to reach their target demographic — no matter how narrow or niche — when they plan their podcast advertising campaigns.
Podcast hosts are excellent at establishing trust. They have a lot of power over the people who listen to them. According to Edison Research’s Super Listeners 2020 report, 45% of podcast listeners say that the hosts of their favourite podcasts use the items and services mentioned on their shows. As a result, we frequently propose leveraging host live reads or “baked-in” ad formats when working with our customers to produce high-performing copy.
According to the Super Listeners 2020 report, 48% of respondents polled claimed they paid more attention to podcast commercials than any other type of media advertisement. This came as no surprise to us, given the same survey indicated that podcast advertising had the highest recall of any channel, surpassing digital, social media, and television. Eighty-six percent of those polled remembered hearing commercials on podcasts, compared to 79% who remembered seeing them on websites, 80% on social media, 71% on live or recorded TV, and 48% in magazines or newspapers.
3 Success Factors for Direct-to-Consumer (DTC) Brands:
- Know your audience.
- Clearly define your objectives.
- Test, test, test and then optimize.