Nielsen’s Tony Hereau: Podcasts Score with Consumers

According to Nielsenamp8217s Fanlink data the number of amp8220avid fansamp8221 of podcasting in the US soared to 16 million households in fall 2017 up from 13 million the year before amp160These podcast listeners are active consumers who spend above the national average on snacks beer liquor tea pet careamp160and paper products among othersWith a growing number of brands adding podcasting to their media plans Nielsenamp8217s Vice President of Audience Insights Tony Hereau spoke to MediaVillage about how marketers should approach podcast advertising and what kinds of ads are effectiveamp160 He alsoamp160shared some of the reportamp8217s surprising takeaways hint amp160baby food and pet food brands should take a hard look at podcastingAlli Romano amp160How do brands determine if podcasting is the right medium for them amp160If so how do they choose the right genre or genresamp160 Tony Hereau amp160We know the podcast audience is more young affluent and educated than other types of mediaamp160 Nielsen39s Fanlinks data is the first step to help advertisers connect their brands with the right audienceamp160 In the latest report we examine the avid fans of 14 podcast genres and which types of products they tend to spend more onamp160 For example avid fans of the comedy podcast genre spend 131 per year on baby foodamp160 This is 14 higher than the nationalamp160average of 115amp160 A baby food advertiser will see greater ROI from this genre of podcast advertising because the audience already spends more on baby foodRomano amp160As you look across the podcast industry what ad categories do you think are out in front using this medium amp160Why have they been successful so far Hereau pictured below amp160The majority of ads you hear in podcasts have traditionally been from direct response advertisersamp160 Nielsen does not track ad spend in the podcast category but we have heard from our clients that the beverage category has really stepped up in 2018 with major national ad buys in podcastingamp160 Nielsen does measure podcast sponsorship effectiveness and the results have shown doubledigit increases in purchase intent for brands of all kindsamp160 Many of these are hostread ads that really resonate with the core audience also known as avid fansRomano amp160What is the most efficient way for a brand to use podcast advertising amp160Should they target both casual and avid fans in one category more frequently or advertise across more podcast genres Hereau amp160quotThe Riches are in the Nichesquot is a famous phrase in the podcast space and it is relevant to advertisers as wellamp160 Spreading an investment around to a variety of podcast genres might be wise for firsttime advertisers but following up with brand lift studies will identify the specific shows that really move the needleamp160 Podcast producers have been very creative at weaving ads into the organic conversation of the showamp160 Nielsen has tested hostread ads as long as fouramp160minutes that sound nothing like a traditional radio commercialamp160Romano amp160Is there a particular podcast genre that offers the most growth potential for advertisersamp160Hereau amp160Noamp160 The whole podcast industry has been expandingamp160 As podcasting gets easier to consume on smart speakers and connected cars mainstream audiences will eventually overtake the early adoptersRomano amp160Among the audience profiles of the podcast genres what did you find most surprisingHereau amp160We sure do love our pets amp160Podcast fans spend 88 billion dollars a year on pet foodamp160 Sixtyeight percent of podcast households are buying pet foodamp160 Spending among avid podcast fans on pet foodpet care is higher than the national average for 12 of the 14 podcast genres featured in our reportamp160 This makes podcast advertising a nobrainer for national pet food and pet care brandsRomano amp160Liquor and beer ranked highly across several genres so that is a strong indicator for those ad categories to embrace podcasting amp160What were some others that stood out to you and whyamp160Hereauamp160 Spending among avid podcast fans on liquor wine and beer is higher than the national average for 12 of the 14 podcast genres featured in our reportamp160 It39s no surprise that alcohol did not resonate with avid fans of religion and spirituality or kids and family podcast genresamp160 Nevertheless the popularity of beer wine and liquor among the majority of the podcast genres would explain why the beverage category has been investing in the podcast space this year according to our clientsamp160 Podcasting39s young adult audience also scores well with contraceptives but we decided to restrict that level of detail to subscribers onlyRomano amp160Based on the data what are some specific groups of listeners that stand out as potential marketing targetsamp160amp160 Or ones that donamp8217t align wellHereau amp160There are certain types of products that do not resonate with podcast audiencesamp160 Annual spending for prune juice tobacco and hair growth products fall below the national averageamp160among avid podcast fansamp160 Products intended for an older audience may not resonate with the young adult audience of podcastingRomano amp160Fans of nearly all podcast genres are more than 10 above the national average for annual spend and many are above 20 but the audience is still small relative to other mediaamp160 Given these factors what are the biggest takeaways for brandsHereauamp160 It39s amazing when you consider the medium of podcasting is somewhere in its second decade of existence yet wellknown national advertisers have still not made a significant investment in podcast advertisingamp160 We know there is a great deal of interest but we also hear that advertisers struggle with taking that first stepamp160 We hope this guide sparks a conversation in the marketplace and shines a spotlight on the opportunities found in this growing advertising mediumPhoto credit Henry Be UnsplashedClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Nielsen’s Tony Hereau: Podcasts Score with Consumers

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Alli Romano

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