Report: Podcasts Thrice as Effective as Online Ads

Inplace #2

videotape.jpgADOTAS – Online ads? How last millennium. According  to Podtrac, the leading network of podscasts and online shows, that is.

Today, Podtrac announced the results of four independent advertising effectiveness studies with TNS, a market research company. The reports find that podcasts have a three-fold ad effectiveness increase over traditional online video advertisements and a seven-fold effectiveness increase over TV.

The studies showed embedded advertising in online shows and podcasts were highly effective methods of boosting brand awareness, usage intent and positively impacting brand perceptions across four product categories: TV programming, cars, financial services and digital imaging.

The studies results include:
• Average unaided ad recall of 68%
• Average aided ad recall of 89%
• 73% average increase in likelihood to use/buy vs control group
• 69% having a more favorable view of advertiser due to ad exposure

“Online shows and podcasts have loyal audiences who pay attention to advertisers who support the shows they regularly listen to or watch,” said Velvet Beard, Podtrac’s vice president of products, in a release. “The studies showed a 73% increase in likelihood to use or buy an advertised product which is an indication of successful targeting, the unique relationship audience members have with the hosts of today’s online shows, and their ability to quickly move audiences from awareness to consideration to purchase. The studies showed that 69% of audience members have a more favorable view of in-show advertisers, which means a tremendous amount of goodwill goes to advertisers of online shows when show selection is intentional and advertising and ad formats are integrated into show formats.”

Spending on online video represents about 4% of all interactive advertising spending, but eMarketer forecasts that U.S. spending will triple to $4.3 billion in 2011 – and the size of podcast monthly audiences is expected to reach 50 million by 2010.

The studies were conducted between February 2006 and March 2008.