5 Reasons to Move TV Advertising Budgets to Podcasts in 2024

The digital audio revolution has been here a while—and podcasts are a driving force. Though listening rose sharply in 2014 with the release of Serial, the COVID-19 pandemic drove its skyrocketing popularity, making the medium a mainstream entertainment mainstay. According to Edison Research, 42% of Americans ages 12+ have listened to a podcast in the last month, which is a 250% increase since 2013 and a 31% increase since 2019.

As consumers gravitate toward screenless, on-demand entertainment, podcasts will continue to provide an immersive, intimate experience that other mediums lack. Podcasts connect consumers to their interests and hobbies, keep them informed and educated on current events, provide passive entertainment, and offer a unique personal relationship between the host and listener. 

Whether you’re new to podcast advertising or hesitant to increase your investment in the medium, here are five reasons to up your podcast game in 2024.

1. Reach the Untethered Masses

Did you know that podcast audiences are increasingly less reachable through traditional TV? Audiences are spending less time with traditional TV than ever, with viewership falling below a 50% share for the first time. According to Nielsen’s Scarborough Podcast Buying Power Survey, 54% of podcast listeners age 18 and up are cord-cutters. As audiences become increasingly difficult to reach through broadcast and cable TV, brands should take note of the power, value, and efficacy that podcasts provide to the media mix. 

Advertisers can get exclusive reach with podcasts that traditional TV can’t provide. In fact, 50% of podcast listeners say that the time they spend listening to podcasts is replacing the time they used to spend watching TV.

2. Win over Younger Audiences

The average age of traditional TV viewers is 50.3 versus 39.7 for podcast listeners. When looking at heavy users of each medium, that gap is even wider. Among heavy users of traditional TV, the average age is 58.7, and among heavy users of podcasts, the average is 37—a generation younger than heavy TV users. Adding podcasts to a network/cable TV buy provides a unique, additive, and younger audience. 

Get in with Millennials and Gen Z

When it comes to the coveted millennial and Gen Z demographics, it’s podcasts FTW. Brands can tap into the exclusive reach podcasts provide to get their message in front of these valuable audiences. 

3. Pick up the CTV Pieces

We’re all still living the will-we-won’t-we of whether we’ll fall into a recession, which is making many consumers tighten their belts. And with its 47% churn rate, CTV subscriptions are clearly being cut. Consumers are also feeling the strain of the increasing fragmentation in the CTV space. Nearly half (48%) of our listeners 18+ say they have a hard time keeping up with streaming video services. To consistently reach audiences through the CTV subscription hopping, advertisers need podcasts more than ever before. 

4. Extend Campaigns and Reinforce Messaging

You can increase campaign efficacy by adding podcasts to your campaign. A recent study we conducted with Nielsen shows that when brands leverage podcasts alongside CTV, their campaigns performed better across the funnel. The study measured two campaigns, one for a retailer and the other for a CPG brand. Podcasts boosted unaided brand recall +16pts and +13pts, respectively. And the podcast ads effectively moved mid-funnel metrics for the retail brand:

• +12pts higher brand familiarity

• +3pts higher brand favorability

• +6pts higher message association

5. Put Ad Budgets Where Audiences Are Receptive

Podcast ads drive more attention than TV ads, and listeners are much more receptive to them. When asked to compare different forms of advertising on a variety of attributes, podcast ads ranked higher than TV ads for every positive attribute and were also much less likely to be described as repetitive, annoying, and intrusive compared to TV ads.

With podcast listeners’ high ad receptivity, it’s no surprise that they’re more likely to be influenced to take action. Compared to traditional TV, podcasts drive stronger lifts across the entire marketing funnel, from awareness to action. If you’re looking for a high-ROI channel that generates greater brand engagement and consumer trust, podcasts have you covered.

Make 2024 Your Year with Podcasts

When it comes to choosing the perfect podcast partner, look no further. SiriusXM Podcast Network campaigns are incredibly effective at driving results for brands, from awareness to purchase intent. In fact, SiriusXM Podcast Network campaigns outperformed Kantar’s marketplace norms for podcast campaigns across all key brand metrics. So, whether you’re looking to grow your brand, retain customers, or drive sales, we can help you reach your goals. 

Looking ahead to 2024, are podcasts part of your marketing strategy? They should be. Let’s talk.