Podcasts have become a prominent channel for brand discovery, surpassing traditional platforms such as television, radio, and even social media, particularly among younger audiences.
New data from research platform GWI, published in its annual trends report Connecting the Dots, highlights the growing role of podcast-sponsored content in driving brand awareness.
According to the report, 22% of podcast listeners discover new brands and products through podcast advertising. This trend has accelerated since 2021, with Gen Z audiences increasingly turning to podcasts over other media platforms.
Beyond brand discovery, podcasts are playing an important role in how audiences consume news and information. Nearly as many Americans now get their news from podcasts (21%) as from newspapers (24%). Millennials and Gen Z listeners are at the forefront of this shift, with one in four stating they enjoy podcasts as a key medium for content consumption.
The report also points to the influence of podcasts during significant events, such as the recent US election, where 14% of Americans cited podcasts as a source of political information. Furthermore, 5% of listeners identified podcasts as one of their most trustworthy sources of information.
Growing Podcast Investment Highlights Market Potential
The surge in podcast popularity has prompted significant investment from brands and platforms. Deals such as the $125 million acquisition of Call Her Daddy by SiriusXM underscore the medium’s potential as a lucrative marketing channel.
Younger audiences are spending more time listening to podcasts, but brands face the challenge of addressing ad fatigue. One in five younger listeners, including Gen Z, report skipping ads, compared to just 15% of Gen X and Baby Boomers.
Ad integration within podcast content is key to overcoming this challenge. Seventeen per cent of listeners prefer advertisements that are seamlessly embedded into the episode and delivered in the host’s style, emphasising the importance of engaging and contextually relevant ads.
Although most podcast listeners spend less than an hour a day with the medium (42%), the growing audience size presents an opportunity for brands to create tailored, host-led advertisements that align with listeners’ interests.
Podcasts as a 360-Degree Marketing Channel
Bridget Evans, Global Director of Business Brand Marketing at Spotify, notes that Gen Z’s engagement with podcasts often extends beyond the digital realm. Thirty-seven per cent of Gen Z listeners attend live podcast events, strengthening their connections with hosts and communities.
Evans explains: “This means podcasts are now a 360-degree amplification opportunity for brands. Spotify’s ecosystem — from live events to social and audience targeting via Spotify Audience Network and more — lets brands reach these highly engaged audiences and forge authentic connections across multiple touchpoints.”
Matt Smith, Trends Analyst at GWI, highlights the unique opportunity podcasts present for brand advertising. Unlike traditional media, podcasts create an environment where ads can feel naturally integrated into the content. Younger audiences value this personalised and relatable experience, making podcast advertising a powerful tool for targeting these demographics.
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