From HelloFresh to Stamps.com, there is no shortage of direct-to-consumer brands using podcast advertising. Even as brand campaigns today now represent a bigger share of spending than DTC ads, there is good reason that companies that sell directly to shoppers remain with podcasting. A study released Thursday shows 99% of marketers in the U.S. say podcasting is effective in reaching relevant consumers. That is one point higher than the 98% of marketers who said the same when data from Canada and the U.K. are added from a survey conducted by Acast across the three countries.
The study not only interviewed DTC marketers, but also podcast listeners. The results show podcast listeners in each of the three markets agree that podcasts are an effective medium for DTC brands. According to Acast’s findings, 88% of DTC shoppers are very likely to be happy with purchases they made after hearing the products advertised in a podcast.
The survey found three in ten DTC shoppers say podcast ads are highly relevant to them, compared to about a quarter of radio (24%) and streaming music (23%) listeners. DTC shoppers who listen to podcasts are also three-times more likely to say that advertising on the medium is becoming more relevant.
The research also examined the role that host-read endorsements play in DTC marketing. Acast says its data shows 99% of DTC marketers who advertise on podcasts agree that product endorsements are important in building trust with consumers. Among consumers, nearly half (48%) say they rarely will buy a new product without an endorsement from someone they trust. And overall, podcast listeners are seven percent more likely than the average DTC shopper to agree that they rarely buy a new product without a product endorsement.
“Podcasting is true word-of-mouth advertising and because of that at Acast, we consistently see the unique trust and depth of parasocial relationships that podcast listeners develop with the hosts that they love, which makes the value of podcast host endorsements unmatched,” said Greg Glenday, Chief Business Officer at Acast. “As DTC brands today are dealing with new challenges from bad actors on social channels eroding consumer trust, we’re seeing that podcasters provide an authentic and reliable safe harbor to market products to their audiences.”
Even as inflation in the U.S. continues to fall, the survey data shows podcast listeners are less sensitive to price when shopping than with other forms of audio, likely a factor of the medium’s higher rate of affluent listeners. Acast says 54% of podcast listeners consider inflation while shopping, which is four points lower than for broadcast radio.
Yet other factors play into podcast listeners’ decision-making at a higher rate. For instance, the desire for eco-friendly brands is particularly high with DTC shoppers in the U.S. where three in four say they are on the lookout for such brands.
Download Acast’s full study HERE.
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