Global: podcasts starting to ‘punch at the same level’ as radio

The pandemic has accelerated a long-term trend of UK listeners consuming more digital audio, while advertisers are taking the medium much more seriously than before with more media spend and strategic attention, Global has found from a high-level industry survey.

Global’s Digital Ad Exchange surveyed 203 manager-level or above employees at UK media agencies and advertisers and carried out in-depth interviews with nine directors and heads of department from leading agencies and brand advertisers on a variety of topics.

Katie Bowden, commercial director for audio at Global told Mediatel News that the report demonstrated that the value of digital audio is now “properly established” and podcasts are “definitely here to stay”, with more than half (55%)  of those surveyed already invested in a podcast and nearly three quarters (75%) planning on investing in a podcast in the next 12 months.

Bowden (pictured left) highlighted how rising ownership of smart speakers has also contributed to this and now some podcasts have started to “punch at the same level” as some of their big radio shows with the DAX-represented podcast by comedians Rob Beckett and Josh Widdecombe’s Parenting Hell as an example of this which gets over 600,000 listens a week.

She added: “I think that the investment will just continue and continue into that space because it’s just so flexible and you can have a lot of fun with it. Particularly, the great thing about podcasts as well as it often connects with people who aren’t traditional radio listeners.”

This is backed up by IAB’s Digital Ad Spend Study which shows there has been a significant growth in ad spend on digital audio since 2019.

It found total digital audio spend accounts for £104m in 2020, compared to £89m in 2019, with podcast spend growing the most by 43% from £23m in 2019 to £33m in 2020.

This appears to be following the trend in the US where podcast listenership and ad spend have been soaring in recent years.

While podcasts are growing, Bowden stressed that radio has always been a more trusted medium with opportunities for presenters and talent to deliver a message via an innately intimate experience with one-on-one listening via headphones in the home adding a layer of interest for brands and agencies when planning campaigns.

The report echoed this as it found that almost three quarters of advertisers and agencies (71%) agreed digital audio enabled them to reach audiences that are high engaged and trigger a positive emotional response.

This high engagement, along with trust, creative opportunities, flexibility, targeting, reach and transparent measurement associated with digital audio all contributed to this shift in how advertisers view the medium in their strategy, according to DAX’s findings.

Bowden told Mediatel News: “Radio has always been a really trusted medium, but as soon as the word digital was in front, they could sometimes be a bit of apprehension from advertisers.

‘Whereas, now, people see it is both a mass [medium], but also a trusted medium with exciting targeting capabilities, which again is just really pulling out the strengths of audio.

“Often digital audio was viewed as a bit of an add-on, rather than seeing it as a core part of your media plan. And I think that there is a perception that it was more niche than it actually was. So, I think that when you look at the fact that people are now seeing it, one, as a central part of their media plan but, two, a really important platform to be able to reach mass audiences is really the most exciting part for us.”

The fact that audiences can be reached throughout the day and in a range of situations brings benefits to contextual advertising and 80% of those surveyed agreed that audio represented a great companion throughout the day and the same proportion found digital audio allowed them to be contextually relevant.

Bowden added: “The chat about contextual advertising is well and truly here, and it’s something that we’ve always been good at in audio but we haven’t necessarily shouted about it as much. I think that the interest in digital audio gives us that real opportunity to start to demonstrate just how powerful digital audio advertising can be in a contextual world.”

While behaviour changed over the pandemic with more at-home listening and a spike in news podcast listening initially, this has changed to consistent growth in comedy, sport and family podcast genres over the last 18 months for Global.

Bowden also commented that the move back to the office and the relaxing of lockdown measures will add to this trend of more listeners and media spend: “I think potentially the consumption timing might change, as in we might see that more defined spike at breakfast and drive. Whereas in the pandemic what we saw is a bigger continuation of reach during the day. Whereas, in the old pre-pandemic world you’d have a big spike in breakfast and in drive so I think that you might see a little bit of a lift in those two areas but, generally, I think it won’t impact it negatively.”

The survey found that the creativity and flexibility offered by digital audio were two of the main draws for advertisers and agencies.

The report revealed 70% of those surveyed agree the flexibility of digital audio advertising during the pandemic is important to marketing needs and most respondents agreed digital audio provide interesting creative opportunities than any other media.

Bowden gave Boots Opticians as an example of brands having confidence to creatively tap into audio environments to connect with an audience in a different way. They have decided to seek out all different podcast hosts that wear glasses and channel that into their advertising strategy.

Another element contributing to this positive view of digital audio for advertisers and agencies is transparent measurement and data insights according to Bowden: “ Brands marketing know exactly what audio is delivering on their plan. It all contributes to a feeling of right I know where I’m investing my money and I know how I’m going to get the results out of the money I’m putting in.”

All of these factors, paired with the quality of the digital audio environment make this a space to watch for everyone in the industry.

Global’s Digital Ad Exchange carried out a survey of advertiser and agency leaders via MTM between March and April 2021 on their views of digital audio and advertising.