"While that influx of big advertisers is good news for podcast companies, it also makes it more challenging for small- to mid-sized brands to stand out in the space. After all, host-read ads became popular among startup and DTC brands initially because it was a relatively untapped space, and they gave listeners an authentic, direct call to action through a unique promo code."
"Those bullish on the channel still argue that when podcast creators endorse a brand, listeners tend to respond to the promotion due to their trusting dynamic with hosts. However, with major retailers getting in on the audio marketing tactic, smaller brands are now being pushed to test and continuously invest in this channel until they find the right shows that convert customers. And it's not always the biggest shows that help brands reach the most effective audience."
Acast saw sales grow 41% in the third quarter as new and larger advertisers joined its podcast network. Major advertisers such as Capital One and Coca-Cola have entered podcast advertising. Host-read ads originally attracted startups and DTC brands because the format provided authentic endorsements and unique promo codes driving direct responses. The influx of big advertisers makes it harder for small- and mid-sized brands to stand out, pushing them to continuously test and invest to identify shows that convert. Asset, a butt-care startup launched in 2024, faced censorship on Instagram and TikTok and therefore bought podcast spots on Trixie Mattel's 'The Bald and the Beautifu.'
Read at Modern Retail
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