Research Touts Marketing Benefits of Podcasts, but Production Obstacles Limit Adoption

Podcasts offer an enormous marketing potential. One in three podcast listeners expect to increase their podcast consumption over the next six months. Nearly one in five Americans ages 18-49 listen to podcasts at least once a month, while nearly one in three men 18-34 listen to them. That’s according to a comScore survey commissioned by audio on-demand network Wondery.

The research also finds that podcast listeners are more likely to have a college or higher education, have over $100,000 in household income, and be early adopters in movies, electronics and other categories.

“Are you listening? Your hardest-to-reach consumers are,” stated Hernan Lopez, founder and CEO of Wondery in a press release.

Two-thirds of podcast listeners have engaged in various research and/or purchase-related behaviors as a result of advertising exposure from podcasts. Among all forms of advertising on mobile devices, podcasts create the highest improvement in perception. And among all forms of digital advertising, podcast ads are considered the least intrusive.

A Podcasting Boom

“It’s clear that we’re in the midst of a new podcasting boom, spurred in large part by improved accessibility via mobile and a tidal wave of rich and compelling content,” stated Andrew Lipsman, vice president of marketing and insights, comScore. “This research provides strong evidence for why this sector is very attractive for advertisers.”

A recent study by Nielsen Scarborough also found that podcasting consumption is increasing. The study reported that the number of adults 18 and older listening to a podcast during the past month has doubled over the previous five years.

Nielsen also reports that podcast listeners are good targets for marketers, especially those promoting financial services. They have higher average incomes than the general population, and more than 65% have some type of investment. Nearly half participate in a 401(k) plan, and they are 25% more likely to have stocks, 105% more likely to engage in online investing/stock trading and 15% more likely to use a financial planner.

Podcasting Hurdles

Marketers face more than a few challenges when producing podcasts. Producing quality podcasts is more difficult than many business think, and the benefits often fall short of expectations.

Businesses chronically underestimate the time, technology, talent and other resources required to produce high-quality podcasts. Many podcasts are shoddily produced. Many lack significant education or entertainment value. Hosts frequently lack broadcasting skill or knowledge of the subject. In addition, they are expensive to produce – more expensive than any content type other than video.

The decision to start podcasts should not be taken lightly. One-off podcasts seldom succeed.  Success most always requires producing a series of programs to build an audience. Before jumping on the podcasting bandwagon, businesses would be well-advised to do careful planning and preparation. .

• Develop topics for at least 12 monthly podcasts and outline the content of each show to avoid repetition. Produce at least three episodes before you air the first episode. That will help you learn about what’s required to produce a podcast.

• Ponder your point of view and storytelling skills. Those factors are crucial for producing interesting and entertaining podcasts.

• Think carefully about the program’s host. The good host needs entertainment, interviewing and communications talents that few people possess – even skilled business communicators.  First-class hosts have a pleasing voice and can read scripted radio copy smoothly and convincingly.

• Contemplate your potential audience and measure the potential benefits of podcasting against its costs. Your prospective audience may be too small to justify the time, effort and investment of creating a podcast. That’s especially true in B2B promotion.

• If you do proceed, make absolutely, positively certain that your first podcasts contain must-have information and insights on high-interest topics with lead-ins that grab and hold attention. (A high percentage of podcast listeners exit after just a few minutes.)

“While anyone with a smartphone or a computer can become a podcaster, building a loyal audience is where the challenge begins,” the Nielsen study warns. “And with so many platforms vying for the attention of the consumer, selecting the right content is the key to success.”

Bottom Line: More people are listening to podcasts, research reveals. Podcast listeners have higher-than-average incomes and are a potentially lucrative audience for businesses. Nevertheless, it’s crucial for marketers to think carefully about the pros and cons of podcasts before committing to a production schedule.