Podcasts have emerged as the new go-to medium for brand discovery, especially among younger audiences, with a new study suggesting the spoken word has now overtaken TV and even social media platforms as the channel of choice.
That is according to research platform GWI, whose 2024 Connecting the Dots survey will no doubt become a top read over at the likes of Spotify.
It reveals that since 2021, brand discovery through podcasts has accelerated, particularly with Gen Z listeners, who are increasingly tuning into podcasts over other media.
And it is not just brand awareness that has increased. Almost as many consumers get their news from podcasts (21%) as newspapers (24%) — a shift driven primarily by Millennials and Gen Z listeners, of which one in four say they enjoy listening to podcasts.
The recent US election also highlighted the importance of podcasts to American listeners, with 14% of Americans noting podcasts as a source of information on US politics, and 5% noting it as one of the most trustworthy sources.
With podcast investment on the rise through high-profile deals — like the recent acquisition of Call Her Daddy by SiriusXM for $125m — podcasts ads are being positioned as a key investment for brands wanting to connect with younger consumers.
However, as with all channels, brands must be mindful of ad fatigue; one in five younger listeners already say they tend to skip through ads, compared to just 15% of Gen X and Baby Boomers.
In fact, consumers have made it clear that the format of an ad is a deciding factor in skipping it or switching off entirely. Some 17% of listeners have a preference for ads integrated into the episode, in the host’s style — making it crucial for brands to tailor engaging and relevant advertisements.
Although most listeners dedicate less than an hour a day to podcasts (42%), the growing listenership is a clear opportunity for brands to align with their audiences interests through tailored, host-led ads that seamlessly blend into the show’s content.
GWI trends analyst Matt Smith said: “Unlike traditional media, podcasts provide a unique opportunity for brands to reach listeners in an environment where ads can feel like a part of the experience.
“Younger generations value a deeper personal connection to content and are drawn to hosts that they find relatable, so podcasts are a powerful option for targeting these audiences in an engaging way.
“As podcast popularity continues to grow, brands that adopt a well-thought out and aligned approach to podcast advertising can create more memorable touchpoints with audiences that can’t be replicated via other channels.”
Spotify global director of business brand marketing Bridget Evans added: “Gen Z’s love for podcasts extends offline, with 37% attending live podcast events, deepening their relationships with trusted hosts and communities. This means podcasts are now a 360-degree amplification opportunity for brands.”
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