Nielsen’s Tony Hereau: Podcasts Score with Consumers

As representatives from across the podcast industry gather in Philadelphia this week for the annual Podcast Movement conference -- billed as the world’s largest gathering of podcasters -- producers and brands alike are intent on harnessing this booming media.  To help guide them Nielsen just released its new Marketer’s Guide to Podcasting: Q3 2018, which reaffirms podcasting’s ascendancy and details how podcast listeners by genre direct their spending. 

According to Nielsen’s Fanlink data, the number of “avid fans” of podcasting in the U.S. soared to 16 million households in fall 2017, up from 13 million the year before.  These podcast listeners are active consumers who spend above the national average on snacks, beer, liquor, tea, pet care and paper products, among others.

With a growing number of brands adding podcasting to their media plans, Nielsen’s Vice President of Audience Insights, Tony Hereau, spoke to MediaVillage about how marketers should approach podcast advertising and what kinds of ads are effective.  He also shared some of the report’s surprising takeaways (hint:  baby food and pet food brands should take a hard look at podcasting).

Alli Romano:  How do brands determine if podcasting is the right medium for them?  If so, how do they choose the right genre (or genres)? 

Tony Hereau:  We know the podcast audience is more young, affluent and educated than other types of media.  Nielsen's Fanlinks data is the first step to help advertisers connect their brands with the right audience.  In the latest report, we examine the avid fans of 14 podcast genres and which types of products they tend to spend more on.  For example, avid fans of the comedy podcast genre spend $131 per year on baby food.  This is 14% higher than the national average of $115.  A baby food advertiser will see greater ROI from this genre of podcast advertising because the audience already spends more on baby food.

Romano:  As you look across the podcast industry, what ad categories do you think are out in front using this medium?  Why have they been successful so far?

Hereau (pictured below):  The majority of ads you hear in podcasts have traditionally been from direct response advertisers.  Nielsen does not track ad spend in thepodcast category, but we have heard from our clients that the beverage category has really stepped up in 2018 with major national ad buys in podcasting.  Nielsen does measure podcast sponsorship effectiveness and the results have shown double-digit increases in purchase intent for brands of all kinds.  Many of these are host-read ads that really resonate with the core audience, also known as avid fans.

Romano:  What is the most efficient way for a brand to use podcast advertising?  Should they target both casual and avid fans in one category more frequently, or advertise across more podcast genres?

Hereau:  "The Riches are in the Niches">

Alli Romano

Alli Romano is a media pro who has covered digital media, radio, and broadcast and cable TV in her MediaVillage column, "Alli on Audio," as well as for numerous industry publications, including Inside Radio, Broadcasting & Cable, TVNewscheck.co… read more