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Research Shows Just How Big Sales From Podcast Ad Spending Really Are.


Advertisers already perceived that podcasts are delivering solid returns, with a survey released last year by Acast showing 97% felt for every dollar spent they were getting multiples in sales results. Now the company has released findings of a new study it conducted in collaboration with the media agency OMD that highlights the effectiveness of podcast advertising.


Not only does podcast ad spending deliver more than four-times the return, the study also shows that podcast advertising is 34% more cost-effective in driving brand awareness vs. average media.


The study, conducted by Acast and OMD’s analytics division Annalect, analyzed the Swedish market with 32 different advertisers from six different industries. The results show that podcast advertising provides the highest short-term return on ad spend. For every dollar spent — or in this case Swedish Krona — the marketer saw a 4.2-times lift in sales. Podcasts also have the highest long-term return, with a 4.9-times bump in sales for every krona spent. The analysis found that podcasts had a higher rate of return on ad spending vs. social media (3.6) or radio (3.5) in the Swedish marketplace.


Acast says the study also shows that podcast advertising is 34% more cost-effective in driving brand awareness vs. average media. Adding podcasts to a mix of TV and online video can increase a campaign’s short-term return on ad spend by up to 18%. This synergy between different media channels enhances the value of podcasting as a complement in broader media strategies, it says, making it an essential tool for advertisers looking to optimize their ad campaigns.


“There has long been a perception among media agencies that podcasts are far from the point of purchase, but with this study, we see how effective podcast advertising is in driving sales,” said Jesper Cederäng, Business Development Director at OMD. “A large part of our work as a media agency is to help our clients identify which media best drive their business forward. The study confirms that podcast advertising not only builds brands but also provides a strong return on investment. This makes podcasts a key channel in our clients’ media strategies.”


In many ways, the results confirm what marketers were also saying. Acast last released results of a U.S.-focused survey it did with advertisers last year that pointed to a strong return. Among the 250 advertisers and marketers it surveyed, two-thirds (67%) of podcast ad buyers say that $1 of spend on podcasts returns $4 to $6 for their brands. Another 30% say they get $2 to $4 return on the dollar they spend on podcasts. That was the most of other any medium tested.


“Those of us working with podcasts have long recognized their potential for both sales and brand building, and this study further confirms their effectiveness as an advertising medium,” said Johanna Turner, Nordic Sales Director at Acast. “Through our close collaboration with media agencies, we see how podcast advertising is increasingly integrated into our clients’ media strategies, demonstrating the unique ability of the medium to engage and reach the right audiences. Media agencies’ insights and strategic guidance play a crucial role in ensuring the success of our clients’ campaigns, making them invaluable partners in our mission to deliver results.”


Based on their belief that podcasting is delivering strong return on investment, marketers are increasing their commitments. In its survey last year, Acast found that nearly two-thirds (63%) of marketers said that based on performance, podcasts deserve 7% to 14% of total marketing spend. If followed, that would increase global podcast industry revenue anywhere from $17 billion to $35 billion a year.

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