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According to the Podcasting Audit Study by Bridge Ratings, advertisers are expected to spend $500 million on podcast ads in 2020 – a trend that comes on the heels of significant past growth in the sector. There’s one key reason that brands are paying more money for podcast advertising: it works, especially as traditional advertising mediums have become increasingly less effective over the past few years.

Look at the traditional banner advertisement. According to DoubleThink, the average display ad click-through rate is 0.06%. The banner blindness phenomenon has arisen as Internet visitors have grown wary of banner ads and started to tune them out. Data shows that podcasting stands heads and shoulders above traditional display advertising. 

So why is podcast advertising a more effective way for brands to gain attention? For starters, it offers several unique benefits:

Podcasts tend to be highly engaging mediums for delivering messages. Given the audio nature of podcasts, listeners tend to hang on to every word, making them an excellent audience for advertisers who are trying to get their brands known. You don’t have to worry about them tuning out your ad like they do in many other mediums.

People listen to podcasts because they have deep respect for the host. And since they put their trust in the hosts of their favorite podcasts, they’re much more receptive to the brands that these hosts decide to endorse.

- 51% of the US population has listened to a postcast

- 49% of podcast listening is done at home, 22% in the car

- 80% listen to all or most of each podcast episode and listens to an average of 7 shows per week 

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