Podcasts have become a leading platform for brand discovery, particularly among younger audiences, surpassing traditional media channels. According to GWI’s latest report, the trend has accelerated since 2021, with Gen Z listeners playing a significant role in this shift.
The survey shows that 21% of Americans rely on podcasts for news, rivalling newspapers at 24%. Millennials and Gen Z listeners are at the forefront, with one in four strongly prefer podcasts. In addition, during the recent US election, 14% of Americans turned to podcasts for political information, with 5% citing them as one of the most trustworthy sources.
Brands are increasingly recognising podcasts’ potential to reach engaged audiences. High-profile deals, such as SiriusXM’s $125 million acquisition of Call Her Daddy, underline the growing investment in this medium. Younger listeners dedicate under an hour daily to podcasts (42%), representing a lucrative opportunity for brands looking to connect authentically.
“This means podcasts are now a 360-degree amplification opportunity for brands. Spotify’s ecosystem — from live events to social and audience targeting via Spotify Audience Network and more — lets brands reach these highly-engaged audiences and forge authentic connections across multiple touchpoints.” said Matt Smith, Trends Analyst at GWI.
However, advertisers must tread carefully. Ad fatigue is a significant concern, with 20% of younger listeners likely to skip ads compared to 15% of Gen X and Baby Boomers. A notable 17% of listeners prefer ads that are integrated into the episode and delivered in the host’s style, highlighting the need for brands to create engaging and seamless ad content.
“Unlike traditional media, podcasts provide a unique opportunity for brands to reach listeners in an environment where ads can feel like a part of the experience. Younger generations value a deeper personal connection to content and are drawn to hosts that they find relatable, so podcasts are a powerful option for targeting these audiences in an engaging way.
Brands must align their ads with the interests of podcast listeners, leveraging host-led formats and genuine storytelling. By doing so, they can create memorable interactions that resonate deeply with younger audiences, solidifying podcasts as a valuable advertising channel.