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Podcast advertising is a type of marketing that is linked to digital audio files on current affairs available for download on the Internet. This type of advertising does not have a traditional format. It is often compared to blog or internet advertising as it is a new way of reaching customers based on the social media phenomenon.
Traditional advertising consists of television commercials, print ads, and radio ads made by professional agencies and sold to major production companies. Technological advances and the expansion of Internet access and use since the latter part of the 20th century have opened up new opportunities to reach consumers. Marketers developed advertising approaches that took advantage of the popularity of social media, the ability of ordinary citizens to contribute to the public’s wellspring of news, information, and ideas.
Podcasts are a type of social media similar to radio shows produced by amateurs or citizens. The show’s producer chooses a topic and records a digital audio file, expressing her experience or opinion. He uploads it to the Internet for anyone interested to listen to, or makes it available through podcast archive sites for download to an MP3 digital audio player. Professional content providers can also make their audio available as podcasts, radio shows, and college lectures.
These days, anyone with a computer and some audio content can turn it into a podcast. However, podcast advertising is only available for podcasts that are published regularly with a significant enough audience. The advertising format is a full audio spot, as would be used on radio, or a sponsorship announced by the show’s producers.
What marketers have found by looking at the development of podcasts is that as the listener takes it upon herself to find a podcast on a given topic, download it, and often subscribe to the show over time, pay extra attention to any attached announcements that relate to the topic of the show. The on-demand nature of the experience appears to make podcast advertising more effective at capturing attention than traditional advertising.
Media research consistently shows that podcast audiences take some type of action when presented with an ad accompanying the show. If the ad requires a purchase, a significant percentage do. As a result, podcast advertising generates hundreds of millions of US dollars (USD) in revenue, although the infrastructure to get that revenue from marketers to show producers is far less reliable than in the traditional ad market. Much of the advertising revenue goes to professionally produced podcasts, such as public radio broadcasts or taped lectures from major universities, rather than an ordinary amateur show produced in one’s bedroom.