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Cumulus Media's research reveals that podcast advertising is underutilized, with even major brands barely utilizing its potential reach.
Even if a brand advertised across all top 500 podcasts, they would still miss reaching approximately 25% of the weekly listeners. This finding comes as podcast audiences are becoming more diverse, with the median age rising to 36.
The analysis draws from sources like Edison Research's Podcast Metrics and "Share of Ear" Report, MRI-Simmons, Screen Engine/ASI, Podscribe, and Magellan AI. The report provides detailed insights into podcast advertising effectiveness and audience trends.
The Key Points:
Most podcast advertisers are reaching less than 25% of monthly podcast audiences, with current campaigns running below 500M monthly impressions
New podcast advertisers spend an average of only $25,900 per quarter, resulting in insufficient reach to target niche demographics effectively.
Podcast audiences are showing significant age diversification, with the median age of listeners rising to 36 years old compared to the industry average of 32 years.
Among podcast listeners, 35% of their audio time is now spent on podcasts, up from 26% in 2016, driven by the rise of engaging podcast content and the convenience of on-the-go listening.
Podcast advertising can significantly boost CTV campaign reach, potentially tripling the audience for some streaming services
The findings reveal a massive untapped opportunity in podcast advertising. While digital advertising budgets continue to grow, most brands are significantly underinvesting in podcasting, which now represents just 1% of total national ad spend. This gap between audience engagement and advertising investment highlights the significant opportunities for brands that embrace a more assertive and proactive approach to podcast advertising.
The Big Picture:
For the podcast industry, these findings signal a crucial turning point. The maturing audience demographics, exemplified by a broader age range and increased time spent listening, indicate that podcasting has evolved beyond its early-adopter phase into a mainstream medium.
For podcast producers, this means potential for higher ad revenue as brands are encouraged to increase their spending, leading to more lucrative advertising opportunities for content creators. For advertisers, the data suggests that implementing Arnie Semsky's "5% solution" - allocating 5% of digital budgets to podcasting - could yield significant returns, especially when considering the targeted reach and engagement levels in the podcasting space.