The Interactive Adverting Bureau forecasts the creator economy will be worth $480 billion by 2027, and podcasters are showing how audio creators can be a part of the mix. In a follow-up to its “The Creator Economy Opportunity” report released last December, the IAB shows how podcasters are connecting with audiences and at the same time creating an opportunity for brands.
“When it comes to harnessing the power of creators to earn the loyalty and attention of media consumers and to deliver marketing outcomes for brands, podcasters stand out as best-in-class influencers who really deserve special consideration,” IAB Media Center Director Matt Shapo said during a webinar Tuesday.
The report draws largely on other research, including data showing that 73% of podcast audiences say it’s critical for them to spend time with their favorite podcasters each week, and nearly nine in 10 describe that time as a meaningful part of their lives. Because of the close relationship, the report says, three-quarters of podcast consumers and 86% of Millennials say podcasts are their main source of information on topics they are most passionate about.
“The net result for podcasters is an intensity of audience loyalty and interaction that has resulted in 75% of podcast consumers saying that podcasters are more influential to them than original influencers in social media or entertainment,” the report says. “The net result for brands is a halo effect conferred upon marketing messages that has resulted in 91% of podcast listeners acting after hearing a podcast ad, making podcasts a truly special means of brand storytelling online.”
In addition to reach — podcasts now reach nearly 100 million listeners on a weekly basis — the IAB says brands are able to use the audio channel to reach the unreachable. It points to data showing 30% of weekly podcast consumers are cord-cutters who never watch network or cable TV ads, and 65% watch at least three hours per week of ad-free streaming video.
Reach is one thing, action is another. And the IAB report says the halo effect around podcast content has helped to result in brand lift scores on metrics like brand awareness, purchase intent and recommendations following exposure to a podcast ad. And when stacked up against how large brands’ ads perform across the entire marketing funnel, the IAB says the responsiveness of podcast audiences was recently shown to be higher for all measures compared to YouTube and CTV audiences.
The IAB report also digs into listener trends, showing that diverse content is helping to expand the base of listeners that advertisers are looking to reach. The median age of podcast listeners is 10 years younger than the population overall — 39.9 vs. 49.1 years. And podcast listeners are 20 years younger than TV’s average viewer, who is 58.7 years old.
Data also shows podcasts have made bigger inroads with Gen Zs, while the younger-skewing audiences offer marketers an audience that’s significantly more educated and affluent than America overall.
The IAB credits having more diverse creators with the changing face of listenership. In 2023, the IAB says 43% of podcasters were non-White. It suggests that’s responsible for a more than doubling in the number of Blacks and Hispanics who listen to podcasts on a daily basis in the last five years. And having more women hosts has also resulted in even greater gains in the number of women who say they consume podcasts on a daily basis.
To advertisers considering podcasting, the IAB suggests they take a “360-degree approach” as they add audio to the mix.
“The line between creator types has begun to blur, with podcasters deploying their influence more often in video and social channels more commonly associated with the creator economy, while influencers who got their starts in those media environments begin to branch out into the longer form, conversational channel of podcasting,” the report says. “These multiple touchpoints allow for a true 360-degree approach to partnership that enables creative collaboration across audio, video, social media, and live or virtual events that include brand advertising, sponsorships, and show integrations.”
It also recommends brands strategically tap into the power of host reads, but says announcer reads shouldn’t be overlooked either. IAB says pre-produced ads can be “extremely impactful and cost effective” ways to tap into the intimacy of podcasting, noting they can also sometimes even exceed the performance of host-read ads, especially for upper funnel metrics like brand awareness.
Download the IAB’s “Podcasting in the Creator Economy” report HERE.
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