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Podcast Advertising Delivers a ROAS of 4.9 and Outperforms Traditional Media, According to New Study

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Podcast Advertising Delivers a ROAS of 4.9 and Outperforms Traditional Media, According to New Study

In collaboration with the media agency OMD, Acast has conducted a comprehensive new study that highlights the effectiveness of podcast advertising. This study shows that podcast ads are not only excellent for brand building but also highly effective in generating long-term sales.

Key Findings:

  • Return on Investment (ROI): Podcast advertising delivers 4.9 times the ROI, making it one of the most profitable media channels. This means every SEK invested in podcast advertising today generates 4.9 SEK in long-term sales.
  • Short-term ROAS: The study indicates that podcast advertising provides the highest short-term return on ad spend (ROAS) with a figure of 4.2. This surpasses social media (ROAS of 3.6) and radio (ROAS of 3.5).
  • Cost-effectiveness: Podcast advertising is 34% more cost-effective in driving brand awareness compared to average media. Adding podcasts to a mix of TV and online video can increase a campaign's short-term ROAS by up to 18%.

Podcasting has quickly evolved from a niche medium to a significant mass medium. Those of us working with podcasts have long recognized their potential for both sales and brand building. This study further confirms their effectiveness as an advertising medium. Through our close collaboration with media agencies, we see how podcast advertising is increasingly integrated into our clients' media strategies, demonstrating the unique ability of the medium to engage and reach the right audiences.

Study Insights: Our study, conducted with OMD’s analytics division Annalect, analyzed the Swedish market with a total ad spend of two billion SEK between 2021 and 2023, from six different industries and 32 different advertisers. Approximately 25 million SEK came from podcasts. This thorough analysis shows that podcasts have the highest long-term ROAS of 4.9 compared to an average media ROAS of 3.7.

Jesper Cederäng, Business Development Director at OMD, notes,  "There has long been a perception among media agencies that podcasts are far from the point of purchase, but with this study, we see how effective podcast advertising is in driving sales. A large part of our work as a media agency is to help our clients identify which media best drive their business forward. The study confirms that podcast advertising not only builds brands but also provides a strong return on investment. This makes podcasts a key channel in our clients' media strategies."

Conclusion: The synergy between different media channels enhances the value of podcasting as a complement in broader media strategies, making it an essential tool for advertisers looking to optimize their ad campaigns. This comprehensive study underscores the growing importance of podcasts in modern media strategies.

Please email: sales@acast.com to learn more and to access the full study.

Podcast Advertising Delivers a ROAS of 4.9 and Outperforms Traditional Media, According to New Study

In collaboration with the media agency OMD, Acast has conducted a comprehensive new study that highlights the effectiveness of podcast advertising. This study shows that podcast ads are not only excellent for brand building but also highly effective in generating long-term sales.

Key Findings:

  • Return on Investment (ROI): Podcast advertising delivers 4.9 times the ROI, making it one of the most profitable media channels. This means every SEK invested in podcast advertising today generates 4.9 SEK in long-term sales.
  • Short-term ROAS: The study indicates that podcast advertising provides the highest short-term return on ad spend (ROAS) with a figure of 4.2. This surpasses social media (ROAS of 3.6) and radio (ROAS of 3.5).
  • Cost-effectiveness: Podcast advertising is 34% more cost-effective in driving brand awareness compared to average media. Adding podcasts to a mix of TV and online video can increase a campaign's short-term ROAS by up to 18%.

Podcasting has quickly evolved from a niche medium to a significant mass medium. Those of us working with podcasts have long recognized their potential for both sales and brand building. This study further confirms their effectiveness as an advertising medium. Through our close collaboration with media agencies, we see how podcast advertising is increasingly integrated into our clients' media strategies, demonstrating the unique ability of the medium to engage and reach the right audiences.

Study Insights: Our study, conducted with OMD’s analytics division Annalect, analyzed the Swedish market with a total ad spend of two billion SEK between 2021 and 2023, from six different industries and 32 different advertisers. Approximately 25 million SEK came from podcasts. This thorough analysis shows that podcasts have the highest long-term ROAS of 4.9 compared to an average media ROAS of 3.7.

Jesper Cederäng, Business Development Director at OMD, notes,  "There has long been a perception among media agencies that podcasts are far from the point of purchase, but with this study, we see how effective podcast advertising is in driving sales. A large part of our work as a media agency is to help our clients identify which media best drive their business forward. The study confirms that podcast advertising not only builds brands but also provides a strong return on investment. This makes podcasts a key channel in our clients' media strategies."

Conclusion: The synergy between different media channels enhances the value of podcasting as a complement in broader media strategies, making it an essential tool for advertisers looking to optimize their ad campaigns. This comprehensive study underscores the growing importance of podcasts in modern media strategies.

Please email: sales@acast.com to learn more and to access the full study.

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