The Untapped Power of Podcast Advertising: Why Brands Are Missing Out

 

 

Despite the booming popularity of podcasts from platforms like Spotify and Amazon, many brands are still sitting on the sidelines when it comes to podcast advertising. And that hesitation could be costing them.

Once synonymous with true crime and niche storytelling, podcasts have evolved into a mainstream media channel. Whether it’s news, pop culture, business, health, sport, or self-improvement—there’s a podcast for almost every interest.

This content explosion has created a prime opportunity for brands to speak directly to highly engaged, highly specific incremental audiences.

According to IPA TouchPoints, around 30% of the UK population listen to podcasts each week. Among 15-34 year-olds, that number jumps to 58%, up from just 40% in 2019.

Advertiser Investment is reluctant

Despite strong audience growth, many brands are still hesitant to invest in podcast advertising.

A Kantar report shows that 41% of marketers globally plan to increase podcast ad spend in 2025. While that’s a promising sign, it’s a far cry from the post-pandemic surge when podcast ad revenues grew by a massive 74.8% year-on-year in 2021, according to WARC Media.

In 2024, the IAB and PwC reported U.S. podcast ad revenues reached $2.3 billion, with projections to hit $2.6 billion by the end of 2025. Solid numbers—but the rate of growth is clearly slowing.

So, what’s behind the cautious pace?

There are a few key reasons why podcast advertising hasn’t scaled as quickly as expected:

• Measurement limitations – Unlike digital display or search, podcast metrics aren’t always real-time or standardised, making ROI harder to track.
• Fragmented inventory – With so many creators and platforms, it can be tricky for advertisers to navigate and buy at scale.
• Brand safety concerns – Podcasts are relatively open environments, and some marketers worry about appearing next to controversial content.
• Perceived as niche – Many brands still view podcasts as a niche or experimental channel, despite the data suggesting otherwise.

But …The case for podcast advertising is getting stronger.

What many advertisers might not realise is just how effective podcast ads can be.

Recent data shows:

• 71% brand recall for podcast ads – far higher than display or social media formats (Nielsen)
• 54% of listeners say they are more likely to consider buying from a brand they hear about in a podcast (Edison Research)
• Host-read ads consistently outperform scripted or dynamically inserted ads due to their authenticity and personal tone

In short, podcast adverts don’t just reach people—they resonate.

Some Brands Are Already Winning

Early adopters of podcast advertising are using podcasts not just for awareness, but for measurable performance marketing—tracking everything from promo code redemptions to lift in website traffic.

Their secret? Leaning into podcast hosts as trusted influencers and tapping into niche communities where attention is undivided and genuine.

As platforms continue to invest in tools that make podcast advertising easier to buy, measure, and scale, we could be approaching a tipping point.

In fact, some experts believe the next few years could mirror the trajectory of influencer marketing in the late 2010s—once a niche, now a staple.

For brands willing to act now, there are significant advantages. With lower competition, authentic engagement, and expanding reach, podcast advertising is more than just a media trend—it’s a strategic opportunity.

The listeners are there. The trust is there. The ROI is increasingly there.

If you believe in the power of podcasts get in touch we’d love to help