Podcasting Becomes Magnet For Hard-to-Reach Ad-Free Streamers, Study Shows.

Podcast advertising is becoming one of the most effective ways for brands to reach audiences who have migrated away from traditional ad-supported media, according to the latest Podcast Download from Cumulus Media’s Westwood One and Signal Hill Insights. The study points to a surge in advertiser adoption and underscores how podcast listeners — particularly heavy users — represent a uniquely valuable, increasingly unreachable segment of the media marketplace.

The study highlights a shift in TV viewing habits: 86% of weekly podcast consumers used an ad-free video streaming service in the past month, and 64% spent at least three hours per week watching ad-free TV services such as Netflix, Amazon Prime Video, and Disney+. The result for marketers is that a quarter (24%) of weekly podcast consumers are not reached at all by ads on streaming TV platforms, and 38% of podcast listeners no longer subscribe to any pay TV service.

The report says this makes podcasting one of the only scalable channels that can reliably reach the growing population of “ad nevers” — the cord-cutters and ad-free streamers — a group that traditional TV and CTV advertisers increasingly struggle to connect with. Heavy podcast users are even more elusive. The data shows they are 17% more likely than average to be heavy users of ad-free video, watching 11 or more hours a week.

Advertisers are responding. In the latest Advertiser Perceptions tracking, 91% of agencies and brands say they have discussed podcast advertising for potential media investment — the highest level ever recorded in the survey’s 10-year history. Three-quarters (74%) say they would “definitely consider” podcasting in the next six months, and 69% say they would definitely advertise in the coming six months. Actual adoption has soared too, as 78% of advertisers now run campaigns in podcasts. That is up from 15% in 2015.

Part of the appeal is the unique influence of talent. The study finds podcast hosts are the most persuasive personalities in media consumption, with 56% of weekly podcast consumers saying hosts are the voices that influence them most — ahead of social media creators, celebrities, and even AM/FM radio hosts. That disproportionate trust gives brands direct access to an audience that not only selects content intentionally but is more likely to engage deeply with host-read messaging.

Also working in podcasting’s favor is the medium’s design. The findings emphasize that audio is a dominant driver of brand recall. The study cites industry research showing TV ads often fail to make an impression as viewers are not looking at the screen 61% of the time. By contrast, brand recall increases sharply as aural brand mentions rise — with ads that include multiple verbal mentions achieving recall lifts of more than 50%.

Dispelling A Video Myth

The rise of watchable podcasts has implications for advertisers. Half of consumers now say they prefer actively watching podcast videos, but the report notes that 59% of the time spent with podcasts on YouTube is still purely listening rather than watching.

“A podcast is hearable as well as watchable, but we're not seeing a rise of watch-only behavior,” said Signal Hill President Paul Riismandel in a webinar detailing the findings. Even among consumers who prefer to watch podcasts, Riismandel pointed out that they often consume content passively or with shifting attention: “People who prefer the video you actively watch — 88% of them tell us the last podcast they consumed was at home,” he said.

The findings dispel a key misperception among media planners. In an Advertiser Perceptions survey conducted in July, buyers said they believed 43% of listeners prefer audio-only podcasts. The reality is only 25% do. The remaining 75% prefer podcasts with some form of video, whether actively watching or keeping the video minimized in the background.

“Industry perceptions are still struggling to catch up,” Riismandel said.

The report suggests marketers who cling to outdated assumptions about podcast consumption risk mismatching creative formats with audience behavior. With heavy podcast listeners spending more than 13 hours per week with the medium — and increasingly unreachable on other platforms — the report says the advertising value of podcasts continues to climb. And as the number of video-preferring listeners grows, the medium’s hybrid audio/video environment gives brands more ways than ever to engage audiences.

“This isn’t taking away from audio. This is just adding in a form of consumption,” said Cumulus Senior Insights Manager Liz Mayer.

Download the latest “Podcast Download” report HERE.