Why brands should definitely have podcasts as one of the key pillars in their content strategy in 2020

In August 2019, I went to a podcasting conference called Podcast Movement in Orlando, Florida. It was a truly enlightening experience. There were over 3,000 attendees, attending talks on seven different tracks, dozens of exhibitors, hundreds of speakers and tons and tons of sponsors. And there were parties too. But more than anything it was the energy I saw around the space that excited me.

One of the seven tracks was around monetisation and the different ways a podcast could monetise in 2019. There was a lot of conversation around new forms of monetisation like patreon, subscriptions, events, merchandising, I.P. extensions – but the mainstay of every conversation I had around monetisation was about how do we as an industry improve how we work with brands. These were conversations primarily with people working out of the US but there was a commonality to many of the issues we face here in India, and one overarching conclusion: No matter how many alternates we discuss – for free media to flourish, brand buy in is a must.

So why should brands work with podcasts?

It’s about the audience:

• Attentive: In India there is an incredibly attentive audience listening to a podcast. On an unaided recall study we did at IVM, we had 90%+ recall of our active advertisers.
• Affluent: More than 48% of IVM’s audience has income over Rs 12 lakh per annum, and 25% use an iPhone.
• Ad Avoiders: In other forms of media consumption this audience avoids ads, e.g. Ad blockers on web browsers, video content over OTT, etc.
• Age: 85% of the audience is between the ages of 18-40, with the majority being between the ages of 25-40.

Podcasts are all about high quality, highly engaged audiences.

Considering that at IVM we have been seeing growth at over 10% a month over the last three years, this is an intelligent, young, affluent and rapidly growing audience that is highly desirable for marketers to target. 

So why is this new form of media so popular for brands?

The US will see over $1 billion in advertising on podcasts this year. That will continue to grow rapidly.

The main reason for this is the effectiveness of the advertising. Memorability is exceedingly high. Besides that, because of the way podcast advertising functions, most ads are read by hosts, which allows for a transfer of the trust that the audience feels for the host to the brand.

Remember this is an on-demand form of media — audiences are deliberately choosing to spend hours a month listening to the host of their favourite shows. There is a high degree of trust, and affection for the hosts they listen to.

So how can brands work with podcasts?

There are broadly two distinct ways for brands to dip their toes in this new medium

• Sponsor shows: This is familiar. It’s easy. It applies all the familiar forms – preroll, midroll, endroll, branded segment, powered by, title sponsorship – but it is also different. Most brands are used to working with large audiences who pay very little attention to the brands’ message. Podcasting is different. Here the number of listeners is fewer (for now), but the message is heard with a great deal of attention, allowing for a complex message that is highly memorable.

In 2019, we have worked with advertisers like Intel, Storytel, PayTM Money, Savaari, and Cambley. In 2020, we anticipate the number of brands to go up significantly.

• Branded Content: Branded content is a show made specifically for a brand. The goal is to try and allow a brand to engage deeply with an audience that has an interest adjacent to the brand ethos. This is a deep form of engagement, the goal of which is to create an indelible association between the brand and the area of content. In the last year we have worked on several branded shows like:
  • Accenture’s Tech Careers in the New
  • Motilal Oswal’s Equity Sahi Hai
  • Aditya Birla Mutual Funds MF 101.

So where is podcasting in India?

It’s still a very nascent space for brands, but the opportunity exists for a brand to own this space just like the early podcast advertisers owned the space in the US – Squarespace, Blue Apron, GoToMyPC, MeUndies, Casper. These are all brands that were able to gain the benefit of the advantages of podcast advertising at relatively low spends, and maximum exposure. A couple of years ago I remember there was a series of columns wondering why these brands were the ones which people kept hearing. This is the same challenge that we face in India today, where brands who see value in jumping into a new medium early are few. But today a few years later if you look at the podcast brands in the US, every major category has jumped on board.

There is an inevitability to the uptake of podcasts in India in all its various forms. Whether languages, or genres, or formats, audio talk is going to be a large part of the media consumption diet of the typical Indian. The brands that jump on now will be remembered the same we remember early TV advertisers like Vicco or Liril or Maggi or Bajaj or Vicks.

(Disclaimer: The opinions expressed in this article are those of the author. The facts and opinions appearing in the article do not reflect the views of www.buzzincontent.com and we do not assume any responsibility or liability for the same.)