Podcast Ads vs Video Ads. Learn Why Podcast Ads Performed Better

According to Edison Research, 51% of U.S. population ages over 12 years old have listened to a podcast and 22% have listened in the past week. Surprisingly, 78% of listeners mentioned that they don’t mind branded sponsorships. The 2018 Podcast Revenue Report by IAB and PwC stated that marketers spent $479 million on podcasts advertisements in the U.S. and projected that revenue will top $1 Billion in 2021. 

The above mentioned reports confirm a solid and increasing growth of podcast advertising and are now being looked into on how it will boost brand awareness. 

But how about Video Advertising? Are advertisers going to shift now? Which of the two is better – the good old Video Advertising or the up-and-coming Podcast Advertising?

Podcast Advertising

Podcast Advertising is a relatively new ad format where brands promote on a podcast (an audio show usually downloaded or streamed over the internet). In most cases, the podcast host reads the audio ad pre-roll or mid-roll during their show. 

The audio ad contains information about the product/service and relates personal experiences the host had with the product. Also, the host mentions where listeners can order, coupon codes, and more. 

Podcast Advertising is giving some of the highest ROI in the digital advertising industry and is growing quickly as listeners are highly-engaged and trust the host they listen to. 

Due to the nature of the podcast listening experience, the ads, which are designed to blend with the content seamlessly, are more welcome and effective. The Podcast Consumer report, 54 percent of podcast listeners consider purchasing the products or services they heard about on a podcast – the data shows just how effective it is.

Photo by Charlotte May on Pexels.com

Video Advertising

Video Advertising is a promotional content that plays before, during or after a video. Majority of video ads are bought, sold and displayed programmatically using various targeting methods and may also include interactive elements.

Video Advertising is one of the most popular ways to reach online audiences. Experts believe video advertising will dominate the next decade, which suggests that now is an ideal time for marketing professionals to learn more about it and investigate how it could improve the reach and overall effectiveness with campaigns.

According to Cisco, video marketing is expected to make up about 82 percent of all consumer internet traffic by 2022. About 78 percent of people watch videos every week, and 55 percent watch every single day. Social video is shared 1,200 percent more than text and images combined, and 64 percent of consumers report buying something after watching a branded video from a company.

Photo by Andrea Piacquadio on Pexels.com

Podcast Ads Are More Effective

Based on the 2017 Neilsen Digital Media Lab report, 26 out of 46 podcast ads outperformed video pre-roll ads in driving lift in purchase intent for the brands advertised. Among these 26 podcasts, 85% included sponsorships that the host read. Host read ads included in the study were significantly more likely to be described as authentic and believable and 2x less likely to be perceived as forced. 

Nearly 70% of respondents exposed to podcast advertising agreed the podcast ad they experienced increased their awareness of new products/services and 62% correctly recalled the brand advertised within the podcast clip and indicated the ad made them consider new products/services. 

The data comparison between the two advertising strategies are still few. There more aspects that should be looked into – length of ad, placement of the ad, etc. before it can fully be identified that podcast ads win.

What do you think of the two ad formats? 


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