Podcasting Perspectives From The Buy Side
Noodle on this stat for a minute. According to the IAB, US podcasting ad revenue is expected to top $1B by 2021, compared to $479M in 2018. So why are they calling for a doubling of rev? There’s no better source to ask than those who are in charge of placing media buys. To that end Digiday published an interview with Kristina Lutz, Starcom’s President of Investment, on what’s driving podcasting’s revenue growth. Here’s a summary of the points Ms. Lutz makes in the piece:
- Brands Have Found The Podcast Party: For years podcast sponsors were the domain of performance and DTC marketers. Just think back to how many times you heard a MailChimp ad on Serial Season 1. Now regular brand advertisers have discovered the best kept secret in audio advertising and revenue is starting to flow.
- Solving For Measurement: To date podcast sponsorship attribution has been sort of a black hole. When an episode is downloaded advertisers lose the ability to track if an ad was heard, and don’t even try to figure out if it drove a purchase. However, now that podcast content is moving from downloads to streamed delivery more accurate attribution measurement is on the way.
- Flexible Ad Insertion: For years the most common ad placement of podcasts has been host read “brought to you by” audio messages embedded within the content. These are usually limited to 1-2 sponsor at a time, cost more, and are less flexible. Now streamers are starting to offer ad insertion as a way to run normal creative during natural breaks in the content. This will make advertising on podcasts as easy as the music side of streaming.
- Programmatic Floats All Boats: Although it’s still relatively nascent, programmatic audio buying is picking up steam. This will be become an important way to transact ad buys on streamed podcasts, since buying audiences across spoken word content is no different than music content.
Great points to be sure. Get ready to fasten your podcast seat belts!