Four in ten marketers globally (41%) plan to increase spending on podcast advertising in 2025, according to a new report by marketing research firm Kantar. That’s up ten percentage points from 31% in 2024. Only streaming TV had a larger year-over-year percentage gain among 23 marketing channels tracked in Kantar Media Reactions 2024.
So, is it proving to be effective?
Using a meta-analysis of its US LIFT Digital MarketNorms through Q1 2024 and US LIFT Podcast Digital MarketNorms, Kantar has released new insights about the effectiveness of podcast advertising.
Among the conclusions: Podcasts drive up key brand KPIs. Purchase intent gets a 1.7-times lift from podcast advertising. The data also shows “significant short and long-term performance impact” for mid-sized brands, with podcast advertising more than doubling aided awareness and nearly tripling brand favorability. Podcasts deliver “high impact” for high-ticket categories such as automotive. And the medium’s sweet spot is among 35- to 44-year-olds.
Consumer Perceptions Of Podcast Ads
Consumers globally point to podcasts ads as trustworthy, relevant and useful, according to Kantar. In the U.S., the belief that they ‘capture my attention’ is also more pronounced. “As podcasts are increasingly viewed as a trusted source of information, whether that be for life advice, news updates, candid conversations, etc., brands must understand how to leverage that trust and engagement to increase consideration,” Jane Ostler, Executive VP Global Thought Leadership and Alison Lee, VP Media Client Service, NA say in a new Kantar report. “This is particularly notable within the auto and financial service verticals where in depth conversation and information can bring the proposition to life in a unique way through podcast advertising.”
However, Kantar’s data detectives turned up some negatives. Podcast advertising is seen by consumers globally as repetitive and ‘something I try to ignore.’ This finding suggests brands need to be “aware of over-delivering on frequency and maximize creativity in how they use podcast ad formats,” Ostler and Lee say. And they emphasize the importance of authenticity in host-read or host-written ads.
What’s Next
As the number of video podcasts continues to climb – 42% of U.S. adults prefer to watch a podcast rather than listen, according to a Morning Consult survey – brands now have unique opportunities to leverage both the creator’s and the brand’s creative video assets. But keep in mind that podcasting is still an audio-first medium that is often listened to with video minimized or in the background, Kantar reminds. Its report predicts more diversity in ad formats, integration with other media (including social), more multichannel campaigns and more targeting possibilities.
In 2024, CrookedMedia and the Black Effect Podcast Network were among the networks that took their podcasts on the road. As live podcasting gains more traction, Kantar says the trend gives advertisers the ability to engage in real-time, which leads to even more innovative creative solutions.
“With marketers set to spend more in 2025 on podcast ads, podcast platforms will need to continue to innovate to ensure the consumer experience is top of mind,” the report says.
Kantar concludes with a reminder to advertisers that podcast and radio are different media that require their own distinct creative assets that play to each’s strength. “In the same way that many brands are finding success using content creators on social platforms, we think that partnering with podcasters and platforms to create an authentic brand experience (for example, host-written ads) will drive further effectiveness and innovation in this space,” the report says.