Podcasts have emerged as a powerful medium for brand discovery, overtaking traditional platforms — especially amongst younger audiences, according to new data from research platform GWI’s Connecting the Dots report.
The shift highlights a growing opportunity for brands to tap into this trend to reach their key audiences. Since 2021, brand discovery through podcasts has accelerated, particularly with Gen Z listeners, who are increasingly tuning into podcasts over other media.
And it’s not just brand awareness that has increased. Almost as many Americans get their news from podcasts (21%) as newspapers (24%) — a shift driven primarily by Millennials and Gen Z listeners, of which one in four say they enjoy listening to podcasts.
The recent US election also highlighted the importance of podcasts to American listeners, with 14% of Americans noting podcasts as a source of information on US politics, and 5% noting it as one of the most trustworthy sources.
With podcast investment on the rise through high-profile deals — like the recent acquisition of Call Her Daddy by SiriusXM for $125 million — they are positioned as a lucrative investment for brands wanting to connect with younger consumers, who are spending more time with podcasts than ever before.
However, as with all channels, brands must be mindful of ad fatigue — especially among younger listeners, of which one in five say they’ll tend to skip ads, compared to just 15% of Gen X and Baby Boomers.
In fact, consumers have made it clear that the format of an ad is a deciding factor in skipping it or switching off entirely. 17% of listeners have a preference for ads integrated into the episode, in the host’s style — making it crucial for brands to tailor engaging and relevant advertisements.
Although most listeners dedicate less than an hour a day to podcasts (42%), the growing listenership is a clear opportunity for brands to align with their audiences interests through tailored, host-led ads that seamlessly blend into the show’s content.
Commenting on these findings, Bridget Evans, Global Director of Business Brand Marketing at Spotify, said: “Gen Z’s love for podcasts extends offline, with 37% attending live podcast events, deepening their relationships with trusted hosts and communities.
“This means podcasts are now a 360-degree amplification opportunity for brands. Spotify’s ecosystem — from live events to social and audience targeting via Spotify Audience Network and more — lets brands reach these highly-engaged audiences and forge authentic connections across multiple touchpoints.”
Matt Smith, Trends Analyst at GWI adds: “Unlike traditional media, podcasts provide a unique opportunity for brands to reach listeners in an environment where ads can feel like a part of the experience. Younger generations value a deeper personal connection to content and are drawn to hosts that they find relatable, so podcasts are a powerful option for targeting these audiences in an engaging way.
“As podcast popularity continues to grow, brands that adopt a well-thought out and aligned approach to podcast advertising can create more memorable touchpoints with audiences that can’t be replicated via other channels.”
