"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 reported 41% sales growth in the third quarter as new and larger advertisers joined the network, including efforts to bring in brands like Capital One and Coca-Cola. The influx of major advertisers raises competition and makes it harder for small- and mid-sized brands to stand out. Host-read ads originally appealed to startups and DTC brands because they offered an authentic call to action and unique promo codes. Creator endorsements still drive listener responses due to trust, but smaller brands now must experiment and invest iteratively to identify the right podcasts that deliver effective customer conversions. Asset tested podcast reads after facing censorship on Instagram and TikTok.
Read at Digiday
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