Podcast Ads: Marketers’ (not so) Secret Weapon for Brand Discovery

Ever since radios first crackled to life, they’ve been a massive hit, transforming entertainment and connecting people through stories and songs. For marketers, radio was the original tech platform, reaching a diverse and highly engaged audience around the world.

Today, radio still has a place in the marketing mix, but the podcast — radio’s cooler, younger brother — has stolen the audience engagement crown.

In the last few years, podcasts have transformed from a niche channel to a marketing must-have. Big-money moves like SiriusXM’s $125 million acquisition of Call Her Daddy demonstrate just how significant this medium now is. And with podcasts outpacing TV, radio and even social media as a leading channel for brand discovery, marketers would be crazy to ignore this highly authentic, and highly targeted medium.

So, what does the data tell us about the rise of podcasting, and how can marketers ensure they’re making the most of this lucrative channel?

Use podcasts to boost brand discovery

Podcast ads are reshaping the way brands engage with their audiences. Currently, one in five listeners discover new products through these ads, and interestingly, most don’t skip them. They listen because the ads are well-targeted, matching the content they’re already interested in. This is what sets podcasts apart from ads on TV, radio, or online videos. People aren’t skipping or muting, they’re actively engaged.

Younger generations, especially Gen Z and Millennials, are leading the trend, with a quarter saying they enjoy listening to podcasts. And this engagement is even spilling over into the ‘real world’ with Gen Z being more likely than any other generation to attend live podcast recordings and events. For marketers, this provides the perfect opportunity to combine digital and physical interactions, creating a stronger bond with potential buyers.

Create connections and community

Have you ever listened to a podcast and felt like you’re catching up with a close friend? If so, you’re not alone.

Podcast hosts have a unique ability to build trust with their audience, with every listener feeling like a part of the conversation. It’s a phenomenon that mediums like TV simply can’t replicate, and it keeps listeners coming back. This sense of connection is especially important for Gen Z — who are 94% more likely than the average listener to seek community and connection through podcast episodes.

So, considering the relationship between podcast host and listener, it’s easy to see how podcast ads and endorsements might be more impactful and why marketers should be paying close attention. The data backs it up too: those who’ve discovered products through podcasts are more than twice as likely to say influencer endorsements increase their buying intent. In short, podcasts and purchasing go hand-in-hand.

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Don’t rush in

For all the benefits, marketers need to remember that podcasts aren’t some silver bullet. Like any other marketing strategy, they need a well thought through strategy to ensure maximum return.

Before launching a podcast advertising campaign, marketers need to ask themselves:

  • Does the podcast’s content and host’s values align with my brand?
  • Can we deliver authentically within this podcast’s environment?
  • Will our target audience perceive our involvement as genuine?

Careful consideration of these questions will help ensure a campaign feels authentic to listeners who are quick to detect insincerity.

Next, while it might sound obvious, don’t be obtrusive. Consumers often have negative feelings towards ads that disrupt their content, so marketers must prioritise seamless integration to help avoid ad fatigue. Aligning advertisements with the host’s tone and style is essential. And when done effectively, ads won’t feel like an interruption, but a part of the conversation.

Finally, consumers don’t want to be bombarded with brand messaging. In fact, GWI’s data shows ads that offer valuable insights or teach listeners something new rank higher in appeal than personalised messaging alone. Plus, the most ad-receptive consumers favour genres including fiction, advice and self-help, and society/culture. So marketers should consider where their brand can fit into these genres.

Be relevant… and stay relevant

Podcasts are seriously shaking up the marketing world, offering a prime playground for brands to connect with a more diverse and engaged crowd. As everyone dives deeper into digital, podcasts are only going to get bigger, carving out a niche where trust and real connections thrive.

For brands wanting to stay relevant, podcasts are an essential part of the marketing mix. The future of brand connection lies in the ears of engaged podcast listeners. Not only are they a proven method for influencing today’s consumers, but also the next generation.

GWI data shows that one in five Gen Alpha already tune into podcasts. In fact, listeners aged 12-15 would rather chat about podcasts than the music they listen to, making them a hot topic at school lunch tables and a sign of podcasts’ cultural power to come.

And remember, these young listeners today? They’re the big spenders of tomorrow.

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Picture of Matt Smith

Matt Smith

Matt Smith, is a Trends Analyst at GWI