Podcasts have become one of the most important media in recent years. They offer companies a unique opportunity to spread their brand message in an authentic, personal and effective way. Branded podcasts are specifically created or sponsored by companies to reach their target audience and build a closer bond with listeners. But why is this format so popular? And what effect does it have on potential customers
The popularity of podcasts is unbroken and continues to grow. According to a study conducted by Statista in 2023, over 42% of Germans now regularly listen to podcasts – that equates to more than 29 million people. Most listeners are between 25 and 45 years old, well educated and regularly consume digital content. This makes podcasts an ideal medium for reaching a target group with high purchasing power.
Global sales in the podcast market are expected to grow to over USD 10 billion by 2028. Branded podcasts in particular are contributing to this growth. Studies show that around 54% of podcast listeners develop a positive opinion of the brand after listening to a branded podcast, and 61% said they would be more likely to buy a product that was mentioned in a podcast.
Branded podcasts offer brands the opportunity to tell their story in a natural and authentic way, without it feeling like traditional advertising. They speak to listeners in an intimate setting – often podcasts are listened to with headphones, which increases listener attention and focus.
Unlike traditional advertising, where there is often only a short time slot available, podcasts offer the opportunity to delve deeper into topics. Companies can invite experts, tell background stories or offer specific solutions to problems for their target group. This not only creates added value, but also builds trust.
Another plus: listeners usually stick with podcasts over a longer period of time. While the average time spent on social media content is often only a few seconds, most podcast listeners listen to over 80% of an episode. This attention span is worth its weight in gold in marketing, as it offers companies the opportunity to get their message across in a sustainable way.
A prime example of a successful branded podcast is General Electric’s (GE) podcast ‘The Message’. GE, a company known for its technical innovations, opted for a creative format: a sci-fi radio play series. This was not marketed as a traditional advert for GE, but told an exciting story into which GE technologies were subtly woven. The result: millions of downloads and an enormous increase in brand perception as an innovative company.
The podcast ‘Inside Trader Joe’s’ from the popular US supermarket chain Trader Joe’s is another good example. Here, the company gives a look behind the scenes and lets listeners find out more about the creation and selection of its products. Listeners feel connected to the company and the brand is perceived as transparent and trustworthy.
An important reason why branded podcasts are so well received by listeners is the high degree of authenticity. Instead of sending flat advertising messages, which tend to put off many consumers, podcasts offer added value: be it through entertainment, education or inspiration. Listeners see the brand less as a salesperson and more as a partner that provides helpful content.
According to a survey by Nielsen, 68% of podcast listeners trust the content presented in podcasts. This trust is often transferred to the advertised brand. In addition, listeners of podcasts are more likely to tell their friends and acquaintances about the content, which leads to an organic spread of the brand – one of the best advertising effects of all.
Define your target group: Who should be addressed? The more precisely the target group is defined, the more specific the content can be designed.
Focus on authenticity: Branded podcasts should not be obvious advertising programmes. Instead, they should offer interesting stories, specialised knowledge or entertainment.
Regularity is key: To build a loyal audience, episodes should be published regularly.
Partnerships with experts and influencers: By working with industry experts or influencers, the podcast can gain additional credibility and reach.
Branded podcasts offer an excellent opportunity to reach potential customers on a personal level. They allow brands to tell a story that is not only memorable but also builds a strong emotional connection. At a time when consumers are increasingly sceptical of traditional advertising, podcasts offer a refreshing, authentic and effective alternative.
Investing in a branded podcast can be extremely rewarding in the long term – whether in terms of brand awareness, customer loyalty or direct influence on purchasing decisions.