Podcasts and their hosts create an environment ripe for influence and discovery
Three-quarters of listeners surveyed say they trust podcast hosts. M&E companies and advertisers should consider leaning in.
Podcasts have woven themselves into the fabric of the media and entertainment (M&E) tapestry and some have large and loyal audiences.1 Many consumers view podcast hosts as trusted resources—similar to how they may think of social media influencers or creators. Media companies and brands should pay attention, too, as podcasts are often platforms for rich storytelling, self-selected and micro-targeted audiences, and community building. Not to mention, they’re platforms where consumers can be influenced to discover new content and buy products directly through clickable ads.
There are more than five million podcasts globally,2 and according to our Digital Media Trends report, around six in 10 US consumers surveyed say they listen to podcasts, with 30% of listeners tuning in weekly. The share of weekly listeners increases to nearly 55% among millennial consumers.3
Podcasts serve as links within the interconnected M&E ecosystem, with content flowing in both directions. There are myriad companion podcasts based on TV shows and movies,4 TV shows and movies based on podcasts,5 content creators and celebrities who amass audiences as podcasters,6 and podcasters who go on to achieve social media stardom. In addition, podcasts offer a variety of desirable target audiences, whether niche or broad.7
Engagement is often bolstered by podcast hosts and communities of listeners. About a third of listeners say they tune in to podcasts to follow a host they like, and 75% say they trust the hosts they listen to, making them more like influencers than simply hosts. More than half of listeners say they feel a sense of community with other podcast listeners, and that sentiment jumps above 60% for listeners aged 14 to 40.
Compelling content, trustworthy hosts, and strong communities may create an environment of influence and discoverability—one that brands and M&E companies should pay more attention to. Nearly 40% of listeners surveyed are more influenced by the advertisements they hear on podcasts versus advertisements in other places. This figure increases to about 50% for Gen Z and millennial listeners. Advertisements on podcasts may be perceived as more effective because they are often host-read,8 making the endorsements particularly convincing, and tailored to the tone and specific audience of the podcast.
But it's not just brands that should rethink podcasts. Media and entertainment companies should consider leveraging this format to cross-promote content, increase discoverability, grow deep fandom, and engage consumers beyond the peak of the hype cycle.
Here’s an example scenario: After a fan binge-watches a new series on their favorite streaming video on-demand (SVOD) service, they discover a show’s companion podcast, where they listen to behind-the-scenes stories from the creators and actors. They join a community of enthusiastic fans who engage in online discussions, share links, and shop for merch. This cycle keeps fans engaged and talking about the show well after they’re done watching, and it can build anticipation for the next season.
Considerations for M&E companies:
- M&E companies, such as production studios and SVOD providers, should identify the popular podcasts that attract their target audiences and work with them. Fresh podcasts based on popular genres, shows, and movies can breathe new life into older, archival IP, especially given slowdowns in the production of new material.9 For new movies or TV shows, producers should think early on about how to include podcasts as part of the strategy to grow deeper fandom and keep fans engaged in the “off season” or between premieres.
- Though podcast ad revenues have slowed, they are projected to increase along with audience share, making the medium an important channel for advertisers.10 Advertisements on podcasts can be effective at influencing listeners, and advancements in ad technology have made them more seamless to the listening experience. The host-read ads often feel like a personal endorsement or recommendation.11 Mainstream brands, many of which have yet to experiment with the medium,12 should consider podcast placements for their advertisements to get their products into the ears of the right listeners at the right time. Getting in now while ad costs are cost effective13could be a bonus.
- Production studios, book publishers, and video game developers should consider actively mining podcasts for new stories to tell and creators to amplify. Podcast listeners often trust hosts and feel a sense of community with other listeners—which might deliver a built-in audience of viewers, readers, and players.
