Daily Management Review

Experts: Podcasts are the new black in advertising


09/07/2018


Podcasts are becoming an increasingly popular means of advertising. According to advertisers, users are very attentive when they listen to podcasts, and so they will be attentive to advertising there as well. In addition, podcasts open access to young audience. According to forecasts of PwC and the Bureau of interactive advertising, the cost of such advertising in the US will double by 2020.



Oast House Archive
Oast House Archive
CNBC reports that more and more major world brands are posting their advertising in podcasts. Forecasts of the consulting company PricewaterhouseCoopers and the Bureau of Interactive Advertising (IAB) show that cost of such advertising in the US will double by 2020: from $ 314 million in 2017 to $ 659 million in 2020. Among the companies that host such advertising are major luxury brands, for example Chanel and BMW, which previously avoided this type of promotion. An example of the growing popularity of podcasts is The Daily channel, launched by The New York Times. Its number of active listeners has reached 5 million people monthly in two years after the launch. Now you can see advertising channels with podcasts, including The Daily, on billboards in many American cities. The channel earns about $ 290 thousand per month on advertising and sponsorship materials.

The most popular way of advertising is the podcast host reading the ad text aloud. According to experts from advertising companies, this is a very advantageous option for advertising, since the audience, immersed in listening to the channel, is likely to listen to the advertising story very carefully.

"It does not matter that the brand is not necessarily related to the podcast’s content. More importantly, it is read in the same voice and the same tone," notes creative director of the advertising agency Aesop Brian Cooper. According to IAB vice-president for industry initiatives Anna Bager, advertising in podcasts is so popular among advertisers because listeners have to concentrate. "When you listen to something, it's more difficult for you to block it than when you are watching several different things at once," she says.

In addition, podcasts allow reaching a younger audience. "This content is focused on a specific niche that you cannot reach anywhere else. Leaders establish their own relationships with the audience... We want them to read the advertisement in their own voice... This is part of the episode's script, and it does not look like an ad unit, "says Anthony Casalena, CEO of the Squarespace advertising company.

Some companies even create their own videos, rather than asking leading podcast channels to do it for them. So, the British insurance company Direct Line launched podcasts with participation of comedian Richard Herring. 

source: cnbc.com






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