Why the ad industry can’t treat podcasting the same way it did digital video
By Brian Danzis, Managing Director, Americas
The podcast goldrush is here — and, at a glance, it’s looking a lot like the boom of digital video. Media organizations are investing in standalone podcast divisions, venture capital is flowing into the space, and the IAB forecasts that podcast advertising will soon be a billion-dollar industry.
But audio isn’t video, and I have a simple message for the ad industry: scaling podcasting with the same methods with which we matured digital video would be a huge mistake.
Before joining the world of podcasting, I spent 15 years with pioneers in digital video — from leading publishers and platforms to the game-changing advertising technology that lit up the industry.
The digital video industry has a lot to be happy about: there’s a whole ecosystem of services for consumers and ad products for brands. But trying to force a growth strategy on podcasting with similar tactics would ruin some of the very things that make podcasting so beloved — like its platform-agnostic nature and its premium feel.
When it comes to audio, here’s how we scale it the right way.
Keep advertising options high quality
Let’s face it: it’s not unusual for digital video ads to provide a poor user experience.
Think about recent video ads you’ve seen on news websites, for example. They’re often intrusive, create challenges for navigation, and can play at random. YouTube now can have multiple pre-rolls. Social media feeds are stuffed with auto-play ads with no concern for frequency. Full-episode players carry unskippable full commercial loads.
The problem with the sheer clutter of digital video ads has prompted Google to begin blocking obstructive and lengthy ones within the Chrome browser, starting in August. Podcast advertising must not follow suit.
Ads on podcasts are well-received because they prioritize user experience. They’re consumed in the same, effortless way that the content of a podcast episode is: through simply listening. Unlike ads on many other mediums, they require no additional input from users like scrolling, clicking, or even moving your eyes — factors that cause friction and render ads less effective. They also leverage the listeners’ trust in the host or show they’re listening to; host-read ads, for example, speak to listeners in the same voice and manner they’re hearing throughout an episode. They provide a seamless shift from editorial to commercial and back.
And it’s clear this recipe is successful. A recent report from Claritas and Market Enginuity found that ad campaigns on podcasts generate 10 times higher lift than campaigns on formats such as digital, TV, and print.
Looking forward, advertising options in the medium of podcasting should continue to diversify and innovate, in order to support scale — but they shouldn’t lose their authenticity.
Balance creativity with scale
Digital video achieved scale by repurposing TV spots and transferring them to the online medium. But this method doesn’t work for audio.
The podcasting industry should be creative in producing ads that achieve scale but don’t sacrifice integrity. The host-read ad format is a fantastic one because it taps into the listener’s trust in the show’s host. But it’s not so simple to scale a host-read ad across multiple shows, given that each new ad must be read by that particular podcast’s host.
That said, scalable solutions are proliferating. Advertisers can make ad creative that’s not read by hosts, which can easily run across a catalogue of shows. Dynamic insertion allows custom creative to change based on location, time of day or other signals, which means advertisers can serve limited-time offers.
Whereas video ads can be expensive and time-consuming to create — not to mention difficult to customize — audio is simpler to produce and easy to iterate on. And my bet is that AI technology will help improve and accelerate these capabilities.
In the end, podcast advertising quality can’t betray the goodwill built up among listeners and hosts. Ads shouldn’t be prioritized at the expense of the user experience, and they shouldn’t be crammed into audio content haphazardly.
Keep it platform-agnostic
With digital video, consumers are overloaded with programming across many platforms — each with exclusive content. They’re expected to pay for and alternate between Netflix, Hulu, HBO Now, Disney+, Apple TV+, Amazon Prime, YouTube Originals, NBC’s Peacock, and more.
It’s wonderful that there’s such a breadth of content and an appetite for video, but we certainly don’t have an open digital video ecosystem.
We have to ensure podcasting remains platform-agnostic. One of the beauties of the medium is that shows can be made accessible across any podcast app or player. Consuming content is a personal matter, and consumers should be given choice over their experience.
Platform-agnosticism is also critical for advertisers because it standardizes how ads appear on podcasts, and simplifies the buying process. The walled-garden or show-exclusive approach that some companies are taking will only cause friction for consumers, publishers, and advertisers.
The promise of the podcast industry is only growing. The proliferation of technology like smart headphones, voice-activated apps, and connected speakers means we’re just now at the beginning of the audio surge. It provides a huge business opportunity — and an exciting sandbox — for publishers and advertisers alike.
But it also comes with the challenge to scale podcasting with creativity and care. To do so, we must rely on audio’s strengths and use our tools to foster them. The podcast opportunity is upon us, and it’s time to seize it.
