Studies Reveal Advertising in Podcasts and Online Shows are Three Times as Effective as Other Online Video Ads

Ad Effectiveness Measures High Across Four Product Categories Over Two Years

NEW YORK, NY, April 7 2008

Podtrac, the leading network of podcasts and online shows, today announced the results of four independent advertising effectiveness studies with TNS-Global which reveal podcasts as having a three-fold ad effectiveness increase over traditional online video and a seven-fold effectiveness increase over television. Unaided ad awareness across two years of studies was 68% compared to industry benchmarks of 21% for streaming video and 10% for television. The studies spanned two years, from February 2006 to March 2008, and multiple product categories including: television programming, automobile, financial services, and digital imaging. 52 online shows and podcasts participated in the four campaigns studied and 6,869 audience members participated in the research.

Ad formats consisted of: embedded 15-second and 3-second host-read audio and video ads, embedded 10-second and 15-second produced video ads, ad banners on publisher websites, and social networking in the form of publisher blog entries about advertised brands and related topics. Podtrac developed the advertising effectiveness methodology in conjunction with TNS Research.

The study showed embedded advertising in online shows and podcasts to be highly effective for increasing brand awareness, usage intent and positively impacting brand perceptions across four diverse product categories: television programming (TP), automobiles (AM), financial service (FS) and digital imaging (DI). Detailed results included:

  • Average unaided ad recall of 68% 
    (TP 90%, AM 51%, FS 86%, DI 45%)
  • Average aided ad recall of 89% 
    (TP 97%, AM 87%, FS 90%, DI 83%)
  • 73% average increase in likelihood to use/buy vs control group
    (TP 367%, AM 147%, FS 3%, DI 47%)
  • 69% having a more favorable view of advertiser due to ad exposure
    (TP 73%, AM 64%, FS 69%, DI 70%)

"The unaided awareness level of 68% is considerably higher in podcasts and online shows than in other offline and online media," said Mark McCrery, Podtrac's CEO and Co-Founder. "Narrowly targeted audiences, appropriate ad formats, content relevance, lack of clutter, and show host involvement are some of the factors which come together to produce highly effective ads in online shows and podcasts."

"A 73% increase in likelihood to use or buy a product is indicative of the unique relationship audience members have with the hosts of today's online shows," said Doug Keith, former Vice President of the Media & Entertainment Group at TNS and currently President of Future Research Consulting. "Targeted advertising to highly engaged audiences of online shows and podcasts quickly moves users from awareness to consideration to purchase."

"Online shows and podcasts have loyal audiences who pay attention to advertisers who support the shows they regularly listen to or watch," said Velvet Beard, Podtrac's Vice President of Products. "The studies showed that 69% of audience members have a more favorable view of in-show advertisers, which means a tremendous amount of goodwill goes to advertisers of online shows when show selection is intentional and advertising and ad formats are integrated into show formats."

Spending on online video ads represents less than 4% of all Internet advertising and just 1% of the amount spent on TV, according to eMarketer. But growth is expected - with eMarketer forecasting U.S. spending more than tripling to $4.3 billion in 2011. The size of podcast monthly audiences is expected to reach 50 million by 2010.

About Podtrac

Podtrac is the world's largest Advertising Network for podcasts and syndicated online media. Podtrac provides podcasters, online show producers, and advertisers with the first complete systems for media buying, advertising insertion, and measurement. Podtrac has developed the largest database of podcast and online show demographics worldwide representing more than 22 million U.S. podcast listeners and viewers. Podtrac is privately held with headquarters in Washington D.C. and offices in New York. For more information contact Podtrac