Why do Podcasts Capture Hearts but Not Budgets?
by Pary Bell, CEO of TPX
Podcasts are having a moment. Whether it’s the storytelling, the authenticity of hosts, or the joy of diving into a great conversation, there’s no denying the personal connection people feel to podcasts. It’s a medium that informs, entertains, and even inspires action.
But here’s the paradox—while podcasts continue to grow in cultural and commercial influence, podcast advertising remains under-prioritized in media budgets. Despite proven success stories, podcasting is often treated as an experimental channel rather than a core part of marketing strategy. Why is that? And more importantly, how can we shift this perception?
The Podcast Affection Paradox
We’ve all heard it: “I love podcasts!” It’s usually followed by a conversation about how engaging the format is and how the host feels like a trusted friend. For advertisers, this should be a dream scenario—a medium that creates an intimate, personal connection with an audience. But when we get down to the budgets, podcasting is often the first thing to get cut. It’s perplexing.
The issue isn’t that media buyers don’t see the value of podcasts. Many decision-makers are avid listeners themselves. But admiration for the medium doesn’t automatically translate into marketing confidence. Podcasting is still often seen as an “experimental” channel, lower on the priority list compared to TV, digital, or social media.
Podcasts as a Force of Influence
The 2024 US election highlighted podcasting’s undeniable power to engage and influence audiences. Whether it was voters rallying behind messages shared on their favorite shows or campaigns strategically leveraging the medium to build trust, the impact was clear: podcasts move people.
Yet when it comes to media buying, podcasts are often the first to face cuts. This hesitation to allocate significant budgets to podcast advertising is puzzling, especially given the demonstrated results from brands and initiatives that do invest.
What’s Holding Podcast Advertising Back?
Unfamiliar Metrics:
While traditional media has decades of standardized metrics, podcasting offers its own set of measurements like CPM (cost per thousand impressions), Listen-Through Rate (LTR), and Brand Lift. These metrics are newer and less familiar, leading to hesitation from marketers who aren’t sure how to evaluate their effectiveness.Perception of Limited Reach:
Podcast audiences are often smaller than those of TV or social media ads, but they’re also highly engaged. Marketers who focus solely on reach may overlook the deeper connection and loyalty podcast audiences have with their favorite shows and hosts.A Complex Ecosystem:
Podcast advertising requires more expertise than other channels. The diffuse nature of the space—navigating host-read ads, dynamic insertion, and programmatic options—means that generalist media buyers might feel out of their depth. This complexity underscores the need for specialists or partners who understand the nuances of the medium.
From Admiration to Action: What Needs to Change
How do we move podcasting from a “nice-to-have” to a top-tier advertising channel? Here are some steps to help bridge the gap:
Provide Data That Resonates:
Brands need evidence of podcasting’s success in language they understand. Sharing case studies, clear ROI metrics, and examples of brands scaling successfully with podcasts can build the confidence marketers need to commit.Encourage Strategic Testing:
Small-scale test campaigns allow brands to experience the effectiveness of podcast advertising firsthand. Once they see results—whether in engagement, brand lift, or conversions—they’re more likely to scale their efforts.Shift the Focus Beyond Reach:
Podcasting’s value lies in its connection, not just its reach. A host-read ad carries authenticity and trust that no banner ad or TV spot can replicate. By highlighting the unique strength of podcasting, we can help brands see its value beyond traditional metrics.Simplify the Complexity
Partnering with specialists or agencies who understand the nuances of podcasting can take the guesswork out of the process. As Grant Durando recently pointed out, podcasting requires subject matter expertise to execute effectively—but when done right, it delivers real results.
The Missed Opportunity: What Brands Stand to Lose
By not prioritizing podcasting in their media strategies, brands are missing out on a valuable opportunity to connect with audiences in a more meaningful way. The brands that have leaned into podcasting are seeing stronger brand recall, increased loyalty, and higher conversion rates.
Continuing to rely solely on traditional media channels means overlooking the depth of engagement that podcasts offer. Podcasting isn’t just a "nice-to-have"—it’s an essential part of any modern marketing strategy.
How TPX Can Help Brands Take the Leap
At TPX, we know the power of podcasting to drive engagement, build loyalty, and deliver measurable ROI. We specialize in guiding brands through the complexities of podcast advertising, from understanding the metrics to crafting campaigns that resonate. Whether it’s a test campaign or a full-scale strategy, we’re here to help brands unlock the potential of this powerful medium.
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