Streaming Audio: Podcast Potential + Guide to Planning

As marketing becomes more targeted — with enhanced audience segments and a premium on first-party data — the ability to reach people where they are, at all times of the day, is increasingly important for success. Podcasts combine the feel of traditional radio with modern-day digital benefits for enhanced content, offering individuals many ways to consume.

With widespread opportunity for advertisers in podcasting — from strategic partnerships with an influencer that feel like host-read ads to pinpointing audience reach with pre-recorded spots — there’s myriad ways to efficiently build reach and frequency; this makes them a great vehicle to drive brand awareness for a featured product or service.

Many consumers stream podcasts, but that doesn’t mean it is a tactic that should be on every marketing plan. As with all media planning, it is important to understand the target audience and align media channels to key objectives. Let’s look at the growth of this channel and how marketers can make effective decisions during campaign planning.

Podcast growth 

Podcasts have undergone huge advances over the last handful of years. Over 70 million people listened to podcasts last year and that number is projected to keep growing, with an estimated 110 million listeners in the United States by 2029. Like how streaming TV has taken a grip on the traditional linear TV landscape, streaming audio consumption has also grown in popularity as consumers have become more digitally savvy. 

There is a seemingly endless amount of individuals (think influencers, athletes, celebrities) producing shows across countless genres. Although there will always be a place for traditional radio spots, the ability to more precisely target individuals has boosted podcast relevance. Further adding to its success is the availability of podcast content across platforms, including YouTube, Spotify, and Apple Podcasts.

The rate of podcast growth over the last few years has proved this medium is an exceptional media opportunity to get into the ears of a large audience — or a more niche one.

Considerations for planning success

BUYING APPROACH

Podcast planning should begin with evaluating the available options for execution; a few questions to consider are below.

• Will it be purchased through a direct partnership, programmatically, or both
  • Consider if it makes more sense to target an audience across a network of podcasts, a genre, a cherry-picked podcast list, or a combination of targeting types
  • Consider budget; purchasing podcasts programmatically is typically more cost effective

• Is podcasting being used as an alternative to other channels during high-competition seasons? (i.e., linear TV during election season)
  • If so, consider if the goal is efficient reach, reach in high-impact premium environments, or a combination of the two

• Will the ads be host-read, pre-recorded spots, or a combination of both?
  • Consider the following factors when determining the types of ads that will be implemented: client capabilities, creative customization, media investment and ad minimums, and campaign objectives

• Should the investment be exclusively dedicated to new content or is there value in reaching consumers across new and already released content?
  • If new content is a better fit, how often do episodes come out? 
  • Note: Running exclusively in new content is likely a better fit for a direct partnership

PLANNING PROCESS

Once the buying approach has been decided, consider the following factors during the planning process.

1. Podcasts offer various inventory options; net-new content or pre-recorded content are available with the option to select ad slots — including pre-, mid-, and post-roll.
2. Available formats vary depending on inventory, length, and which party is tasked with the script. Format options include pre-recorded or host-read, where pre-recorded spots typically range from a 15–60-second cadence, while host-read spots can vary.
   1. There’s an established trend of individuals preferring host-read ads (Statista) over pre-recorded or professional ads like one would hear on the radio. Host-read ad promotions can provide a source of authenticity compared to an unfamiliar voice.
   2. If a variety of inventory and formats are planned (such as a combination of host-read and pre-recorded spots), create a detailed go-to-market strategy for how formats work together.
3. Ensure that production costs are budgeted and negotiated during planning. 
   1. Pay attention to whether the partners you’re considering offer production as added value; some partners have media spend minimums to unlock added-value production.
4. Evaluate the types of reports a podcast partner can produce as you define your approach. Reporting capabilities may indicate if a partner is the right fit — more advanced metrics could be a selling point, but may also mean less cost effectiveness.
   1. Listens/downloads/streams verbiage can occasionally be used interchangeably depending on the partner; ensure KPIs and their meanings are clearly defined.
5. Before solidifying a podcast buy, understand timelines related to script creation, production, and trafficking lead times. Lead times may vary depending on inventory and format, and these factors should be considered during planning to ensure a smooth launch.

Why is this important for marketers? 

It’s no secret that traditional TV and radio consumption habits have been trending downward while digital consumption habits have risen. As consumer behaviors shift, marketers must be nimble and quickly shift strategies to align with the changing media landscape.

Traditional channels have a place in marketing strategies and continue to be important; however, diversifying media mixes by adding digital efforts like streaming audio or podcasts can help brands reach pinpointed audiences, not just demos. Podcasts offer unique opportunities to reach specific audiences and provide a unique outlet for ad implementation. Working with podcast hosts directly, with a podcast distributor (Spotify or SXM Media), or through a programmatic platform can lead to reaching people on the go, fostering consideration with active listeners.