2021 was the biggest year ever for podcasts, with the number of distinct podcast users aged 15-44 on Spotify growing by +34% YoY.
2022 is set to hit even higher levels of penetration and success, as the industry gets bigger and bolder. We look at nine emerging trends for the industry this year and what this means for advertisers and brand partnerships.
1. 360 and immersive soundscape in podcast ads
As audio technology gets more sophisticated, more options to develop stand-out audio experiences emerge. Immersive audio experiences can be found in the cinema, computer games, Interactive VR and 360° video, and even amusement park rides. Now it has been adopted with YouTube and Facebook 360 video and for podcasts.
As podcasts are an audio-only, screenless experience, the impact of immersive soundscapes is more powerful.
One example is Tourism New Zealand’s 360 audio ad. The aim was to take audiences simply imagining their dream trip to New Zealand, and move them into planning, booking, and making it a reality. This one in particular was produced by Creative Fix, you can listen to it here (stick your headphones in for full effect!)
We predict that more and more brands will embrace this technology to stand out from the pack, and for heightened brand recall.
2. Live audio on social platforms
Clubhouse launched last year, forging the way for other live audio apps to develop and blossom and putting a spotlight on the social/interactive potential of audio.
As social platforms such as Instagram and Twitter innovate to stay relevant and useful to their users, they are turning to audio to diversify their offerings. Although Facebook discontinued Facebook Soundbites (as of June 3, 2022), the introduction of Twitter Spaces last year (the ability to have live audio conversations), continues to lead the audio charge.
This style of audio format indicates a wider podcast industry trend – shorter form audio content. Whilst a long-form immersive experience is one of the drawcards of podcasts, short form audio will allow us to squeeze in even more listening time into our busy lives and has appeal for those with a shorter attention span. It will be exciting to see how the social giants compete to lead the movement.
3. Podcast hosts as influencers/marketing tool
The host of a podcast is often its main major selling point. Some are hosted by established celebrities (like Jason Bateman, Will Arnett and Sean Hayes’ Smartless) and some turn the relatively unknown hosts into celebrities/influencers, as the podcast becomes popular. The intimate relationship that forms between listener and host means that hosts are in a unique position to provide trusted product/service recommendations. Host-read podcast ads achieve 72% brand recall, compared with 62% for non-host-read ads. Additionally, host-read ads on podcasts produce an average of 50% increase in purchase and recommendation intent among listeners when compared against non-host-read ads.(Neilson)
Furthermore, social media influencers are beginning to capitalise on the extra engagement that podcasts offer and are extending their offering to the audio world by launching podcasts. Examples of this locally include The One Eyed Man hosted by Mike Stopforth
4. TV streaming turns to audio?
With the content crunch, Netflix, Stan and other media streaming services will face over the coming years, they will need new ideas that have a proven concept to broaden their engaged audience and offer an edge over competitors.
Imagine watching an episode of Succession in the evening, then seamlessly being prompted to listen to the podcast that discusses the episode on your way to work the next day. Audiences love to go deeper on their favorite shows and podcasts offer a unique and immersive way to do this.
5. More branded content
Although many brands have had great success with podcast advertising, the medium is still relatively under-utilised, compared to the ad spend given to social media, radio and outdoor media. As podcast listenership grows, more brands will dip their toe into the industry, especially for branded content on podcasts.
With more financial support, podcast quality can grow and experiment, resulting in even more brands wanting in on the action.
78% of podcast listeners have said that they don’t mind hearing ads on their stream, providing a warm and receptive audience and a less jarring ad experience than a banner ad.
6. More SA-made content
The South Africa podcast scene is going from strength to strength, with local talent such as MacG’s Podcast and Chill constantly drawing impressive listening/viewing figures and conversation online.
But it’s not all about entertainment, the MoneywebNow podcast hosted by Simon Brown has also shown impressive listening figures since launching in the middle of the pandemic
7. Quality continues to be a driver for growth
Within the ever-expanding content economy, podcasts have a reputation for producing high quality content that can teach you something new, expand your horizons, inspire and entertain. Whilst there are over 25 million YouTube channels and over 500 million blogs in existence, podcasting is still a relatively young medium with a smaller pool of choice and high standards. Why does this scale matter? Because podcasts have not yet become flooded with mass content creators who produce low quality media.
Furthermore, consumers are starting to acknowledge the adverse effects of social media on mental health. A 2020 study suggested that people who use social media for more than 3 hours daily are more likely to experience mental health problems, such as depression, anxiety, aggression, and antisocial behavior. (Medical News Today.) However, one of the key reasons why podcast listeners (59% of those surveyed) listen to podcasts is that “they make you feel smarter” (Infinite Dial 19).
As podcast quality continues to grow by utilising data and feedback, the growth of the medium’s popularity amongst educated, affluent audiences is likely. This is good for podcasters, listeners and advertisers alike.
8. More measurable results means more data-driven decisions can be made
It has been a common struggle for media buyers to identify which tools, platforms and metrics are the most relevant to making informed, data-driven decisions when it comes to podcasts ad campaigns. However, the podcast industry has adapted to provide detailed and insightful data to take podcast advertising from guesswork to science.
The IAB (South Africa) has made the issue of impressions vs downloads and how they are counted a lot easier to quantify, and with the upcoming launch of their Digital Audio Marketers Toolkit – SA marketers are able to take advantage of the latest metrics and tools.
Additionally, with the ability to buy dynamically inserted ads in contextually relevant shows on a CPM basis, wastage can be reduced.. This is due to the audience being able to be geographically targeted and in turn means maximum exposure for your campaign.
Now that podcast ad measurement is robust, more advertisers are taking advantage of this highly immersive platform, with impressive results. A recent study found that 65% of podcast listeners paid attention to adverts – more than adverts on TV at 39% and adverts on the radio at 38%. (The Guardian).
9. Increased competition between podcast apps
Apple Podcasts were the market leader, with over 28 million monthly users reported (Statista). However, sources suggest that with Spotify and YouTube leading the chasing pack, the race for share of ear is on.
With the average podcast listener in the U.S. using close to three different platforms (Westwood One), content options and quality are important to attract and retain users.
As the podcast platforms grapple for dominance, they are innovating with diverse content, high profile podcast creators/celebrities and through acquiring podcast publishing companies.
This continued experimentation in content, talent, and user experience means more choice and high quality content for the listener, plus more options for the advertiser to choose the right show and audience.
From tools, to UX, to new platforms, the podcasting space is ever-changing. The industry is getting stronger and more diverse, with exciting options for advertisers. It’s easier than ever to harness the power of this highly effective medium.
