5 Moments That Defined Podcast Advertising in 2022
Plus, what we’ll be watching this year!
If you feel like 2022 passed in a blink of an eye, you’re not alone. It was another busy year in the fast-paced world of podcasting. Over the last 12 months we saw more deals being made and celebrity podcast launches, but 2022 was also the year we saw a mature ad industry emerge. Armed with experience and better tools, advertisers made bigger bets on the once-niche and experimental medium.
It was tough to narrow down, but we condensed some of the biggest moments into 5 themes that impacted podcast advertising in 2022 and will continue to shape the industry in the years to come. Here’s why they were significant, and what we’ll be looking out for in 2023.
The 5 Moments That Defined Podcast Advertising in 2022
Everything is video
2022 was the year two marketing powerhouses collided: video and podcasting. While video podcasts are nothing new, a surge of creators began flocking to Tik Tok and YouTube to promote their content and grow their audiences. YouTube also planted its own stake in the podcasting industry with creator resources and ad products.
After all, YouTube is one of the largest listening platforms for podcasts, topping both Spotify and Apple podcasts. A 2022 survey found that 57.8% of respondents preferred to listen to shows on the social video platform.
It’s a reach engine for podcasters but also for advertisers too who want to leverage a show’s entire ecosystem. YouTube and other social assets can offer additional touchpoints for a media campaign and more creative ways to engage a host’s most loyal audience.
But audio is also everything
Video sure is shiny, but audio remains a hot topic among marketers looking for ways to break through to increasingly distracted consumers. Brands like Panera Bread and Tostitos got serious about their audio strategies, investing in sonic branding in 2022 to help set them apart from the competition—even when their audience isn’t looking.
Podcasting continued to establish itself as an essential (and effective) part of the media mix, capturing a growing share of digital ad dollars along the way. With 72% growth, podcast advertising grew twice as fast as the total internet advertising market (up 35% year over year). After surpassing $1 billion in ad revenue in 2021, podcast ad revenue is expected to double in 2022 according to the most recent IAB Podcast Ad Revenue Report.
Well-suited
In 2022 brand suitability was a front-and-center topic. Despite a handful of widely-publicized (yet isolated) incidents, the overall consensus is that podcasts offer a relatively safe environment. Brands have the opt-in nature of the content and listeners’ overall receptiveness to podcast ads on their side. The Safe and Sound report from Sounds Profitable and Edison Research uncovered more evidence that podcasting is a safer bet for advertisers.
Overall, podcast listeners know what to expect from the content they engage with. Nearly three-quarters of true crime listeners are comfortable with the subject matter discussed in the true crime podcasts they listen to and 58% think true crime podcasts are an appropriate place for brands to advertise. While two-thirds of comedy podcast listeners agree that they “like it when a brand supports their favorite comedy podcast.”
When audio’s innate capabilities aren’t enough, there’s emerging brand suitability tech to give advertisers even more peace of mind. Contextual-based solutions like Barometer for vetting content are empowering ad buyers with data to make smarter decisions.
The battle of the ad formats
Traditional baked-in host reads have long been considered the most effective podcast ad placement, but their sustainability has been questioned. Served dynamically or embedded into the content, sold direct or programmatically—how a podcast ad was delivered mattered less in 2022.
There’s more than one way to engage the podcast audience, the key is focusing on great creative with messaging that resonates. A podcast listener won’t care if the host read they heard was dynamically inserted. What they do care about is that the read was relevant, informative, and matched the quality of the rest of the content.
But if you can’t tap the host, or want to complement a host read campaign with additional reach, announcer reads can still get the job done. As we learned from After These Messages, listeners of a particular podcast were almost equally receptive to an announcer-read ad as a host-read ad they heard in terms of content fit and overall appeal.
Good news/bad news of diversity
The good news first: diversity among monthly podcast listeners now closely mirrors diversity in the U.S. population. More than four in ten of the 109 million monthly podcast listeners are non-white with particularly strong growth among Black and Hispanic audiences. Another key demographic that’s seen significant gains in 2022? Women.
According to the Women’s Podcast Report from Edison Research, 47 million women 18+ listen to podcasts monthly, growing 67% in the past five years. This is great news for brands looking to engage a highly desirable (read: influential) audience. Compared to the general population, women who listened to podcasts on a monthly basis tended to skew younger, are also more highly educated, more likely to be in the workforce, and more likely to have higher household incomes.
While podcast listening has the edge in diversity, the creator side has more work to do to bring in underrepresented voices. We always knew anecdotally that podcasters are typically white and male, but The Creators study gave us a definitive answer. 29% of creators identify as women, 2% as non-binary, and a majority skewing caucasian.
What we’ll be watching in 2023
We have proof of concept that podcasting builds brand awareness. Better tools for measurement and brand suitability will attract the advertisers that have been holding back.
Programmatic capabilities are here. Even though programmatic could unlock more reach, better targeting, and efficiency, programmatic ads get a bad rap. Advertisers and creators alike will need the right guidance to use them effectively.
Closing the female creator-listening gap. Listening among women is on the rise, and they want to hear stories made by women for women. There’s definitely some work to do here, and we’re excited to be leading the charge of leveling the playing field in 2023.