There may be plenty of bling under the Christmas tree this year and podcast ads for jewelry retailers get some of the credit. Magellan says jewelry ad spending has been above 2020 in every single month during 2021, including during November when it estimates $1.7 million was spent by advertisers. That is a 360% increase from a year ago. And it also represents a near-doubling of the $852,000 spent by jewelry retailers during October.
Brands like Blue Nile are an example of clients that have spent more this year. Magellan estimates it spent $344,500 in 2020 but through November it allocated more than $1.7 million in 2021. Another reason for the gains is there were more brands buying ads. Magellan says it counted more than 100 jewelry advertisers using podcasts this year, a 58% increase from 2020.
The gift industry overall has been one of the hottest ad categories throughout the year and that spending has only grown during the fourth quarter. Magellan says the category topped $3.5 million last month, the most ever recorded for the gift category during a single month. The segment was up 164% compared to a year ago and it grew 143% or $2.1 million versus October. Through mid-December Magellan says $18.8 million has been spent by the gift industry on podcasts.
“Every single month has been above the prior year’s month, but November was head and shoulders above what we had seen before,” said Magellan CEO Cameron Hendrix during a recent webinar.
The growth has been fueled by brands such as StoryWorth that bumped up its podcast spending to $2.4 million in 2021 (through Nov.) which more than doubled the $1 million it spent during 2020. And Uncommon Goods spent $147,600 during 2020 but increased that to more than $1 million during the first 11 months of this year.
It is not just gift spending that rises at year-end. So does spending on wine and spirits. Total Wine & More typically spent the most during November and December. This year, the $495,000 podcast investment in November was their highest month so far – nearly on par with what it spent in December 2020. If the trend continues, Magellan says this month could set a new record for the retailer.
The brand awareness ads capitalized on the holiday season mentioning a “wonderland of wine, spirits, and beer lovers” and nearly a third of ads were host-read. The ads were most highly concentrated in the Society & Culture genre and can be heard on The Splendid Table and Business Wars.
Magellan says Better Help was the biggest advertiser on podcasting during November. It was followed by SimpliSafe, Amazon, T-Mobile, and NBCUniversal. Overall, Magellan estimates the top 15 podcast advertisers spent a combined $40.59 million in November. That compares to $35.2 million that the top 15 advertisers spent in the medium during October, or a 15% increase as 10 of the 15 advertisers bumped up their spending month-to-month.
Magellan analyzes podcast advertising data from the top 3,000 podcasts in the U.S., as ranked by Apple Podcasts. Magellan’s proprietary model is used to estimate advertising spend. It includes factors such as the number of ads and variation in ad load detected for a given episode, number of downloads for each episode, and estimated CPMs as reported in select media kits and estimated based on popularity.