Here's How Podcasting Reaches $5 Billion In Ad Revenue

Steve Goldstein, Founder/CEO of Amplifi Media, recently interviewed Cumulus Media | Westwood One, Audio Active Group® Chief Insights Officer Pierre Bouvard for his perspective on what the podcast industry needs to do to reach $5B. 

The interview, originally published in The Amplifi Thought Letter, is highlighted as this week’s Audio Active Group® blog, outlining the six steps podcasts need to take to hit the $5B milestone.

• Brand lift measurement: The podcast industry will need to lean into brand lift measurement to provide the outcomes desired by brand marketers.
• Enhanced data for media mix modelers: These firms assess the effectiveness of brand marketer investments. Media Mix Modelers need to be consulted to understand desired data specifications and formats for delivered podcast ad impressions. The IAB is leading this process.

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  Pierre Bouvard

  Create always-on data feeds of delivered impressions: Advertiser media teams have dashboards that show impressions and GRPs delivered in the past week and month for TV, Google, YouTube, and Meta. To be at the adult table, audio needs to provide always-on reporting of delivered impressions and as-run GRPs.
• Podcast planning and buying needs scale, i.e., hundreds of shows: No more “pinprick” media plans that buy a handful of podcasts that narrowly align with the advertiser’s product. Podscribe reports podcast campaigns reach less than a quarter of the available podcast audience. Just as TV campaigns run ads in hundreds of shows, podcast campaigns should include hundreds of podcasts to build scale and reach. To reach 70% of the weekly podcast audience, 300 podcasts should be purchased.
• Pretest creative to ensure effectiveness: Creative quality drives half of sales effect. Pretest podcast ads with creative effectiveness firms like System1 and ABX. Ensure ads score well on brand association and positive emotion.
• Use emotion in brand building creative: The most effective ads for brand marketers create positive memories via lump-in-the-throat storytelling and humor. These are very different ads than direct response creative, which are a rational recitation of features, benefits, and relentless calls to action.