Podcasts have emerged as a leading platform for brand engagement, especially among younger audiences, outstripping traditional media channels such as TV, radio and even social media.
The trend is particularly pronounced among Millennials and Gen Z, according to the latest data from research platform GWI in its annual trends report ‘Connecting the Dots’.
The influence of the medium extends beyond brand awareness. In the US, nearly as many people get their news from podcasts (21%) as from newspapers (24%), with one in four Millennials or Gen Zers expressing a preference for consuming content through podcasts.
Some 14% of Americans cite them as a key resource for political news and 5% say they consider them one of the most trustworthy sources.
There have been some high-profile investments in the sector, such as SiriusXM’s £99 million acquisition of ‘Call Her Daddy’, which highlight the potential for brands aiming to connect with younger consumers, who are dedicating more time to podcasts than ever before.
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However, younger listeners are particularly prone to skipping ads, with one in five admitting they do so, compared with just 15% of Gen X and Baby Boomers.
The format of advertisements plays a crucial role in listener engagement. Some 17% of listeners say they prefer ads that are seamlessly integrated into episodes and delivered in the host’s style.
Bridget Evans, global director of business brand marketing at Spotify, said, “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. Spotify’s ecosystem – from live events to social and audience targeting via Spotify Audience Network and more – lets brands reach these highly-engaged audiences and forge authentic connections across multiple touchpoints.”
“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,” added Matt Smith, trends analyst at GWI, “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.”
