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Podcast Advertising: The Good News and the Bad

Study examines performance of ads in podcasts

Is advertising in podcasts (“podvertising”?) a wise use of advertising dollars?

That question is on the minds of those who spend advertising dollars and those who receive advertising dollars, in this case radio broadcasters.

A new study from the Association of Downloadable Media, in conjunction with Edison Research, offers some particulars.

“Active podcast consumers indicated that although they are increasingly turning away from some mass media platforms and advertising approaches, they are receptive to advertising and sponsorship messages in downloadable media,” the organizers stated in a summary.

Edison Research Vice President Tom Webster stated: “A podcast advertising buy is not a redundant media buy for advertisers and marketers. These are attractive, affluent consumers that mass media is losing.”

He added: “Ninety percent of these respondents indicated they had taken some kind of action as a result of podcast advertising or sponsorship, and over 40 percent purchasing behaviors.”

Several points of data in the study indicated that podcast consumers had a more favorable response to podvertisements than traditional viewers had of standard advertisements appearing in mass media outlets.

Similarly, a conclusion said, “Nearly 80% of these podcast consumers agreed that ‘when price and quality is equal,’ the ‘prefer to buy products from companies that advertise on or sponsor’ the podcasts they regularly enjoy.”

The takeaway message for radio broadcasters could be that station podcast efforts are not wasted.

The study consisted of interviews with some 4,800 users of podcast aggregators such as National Public Radio, Wizzar, RawVoice and Revision3.

More findings are found in this PowerPoint presentation (PDF).