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- Audio's 25% Attention Share vs 8.4% Ad Spend: The Marketing Opportunity of 2024"
Audio's 25% Attention Share vs 8.4% Ad Spend: The Marketing Opportunity of 2024"
Miko Santos
December 18, 2024
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WARC research shows that podcasts are an increasingly important advertising tool, yet only 8.4% of ad budgets go to podcasts. This means there is great opportunity for brands to reach deeply engaged audiences, since podcast advertising needs to increase 4.5 times to match current levels of listening. This gap represents billions in untapped potential for brands.
The study, conducted by WARC and featuring insights from industry leaders such as Paul Ruscoe, Senior Director at Incubeta; Ray Borelli, SVP, Research & Insights at Audacy; Kurt Kaufer, CGO, Ad Results Media; and Mike Follett, CEO of Lumen Research, shows a wide gap between consumption and advertising investment in audio. Consumption is 30% higher than advertising investment. A case study by Allbirds in collaboration with Ad Results Media supports such findings: It shows a clear and measurable ROI-a 20% lift in sales that is directly attributable to the podcast advertising campaign.
The Key Points:
Audio accounts for 25% of ad-supported media usage but only sees 8.4% of advertising budgets
Podcast ad spend needs to increase 4.5 times to catch up with current consumption levels
Advanced targeting and measurement capabilities now enable precise tracking of ROI
Allbirds saw a 47% increase in site visits and a 39% lower cost-per-order thanks to programmatic podcast advertising
Audio ads command unique attention advantages as listeners "can't close their ears"
Why It Matters: The gap between audio consumption and ad investment is an unparalleled opportunity for a competitive advantage. With sophisticated targeting capabilities and proven ROI metrics now available, businesses can reach highly engaged audiences with better efficacy than traditional channels. That means potential transformation in their marketing outcomes, along with tapped additional market potential.
The Big Picture: This research could signal a potential boom in advertising for the podcast industry, revolutionizing the entire ecosystem. Podcasters and producers would benefit from increased ad revenue as brands recognize the value of the medium, which could mean higher production budgets and improved content quality.
The industry might see substantial growth in professional production resources, better monetization opportunities for creators, and increased investment in technology and attribution tools.
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