Tom Webster
Jan 25 · 7 min read
jeffreyw [CC BY 2.0 (https://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Over the past 3–4 years, my company (Edison Research) has conducted dozens of advertising effectiveness studies for podcast networks and even individual shows. At this point, if you can eat it, sleep on it, shop in it, or drive it, we’ve done a brand lift study on it. Though the field is young, we are starting to see category benchmarks, and have accumulated some best practices. Still, over all of these categories, from condiments to condoms, there is only one universal truth — one “secret sauce” for podcast ads.

Ready?

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There isn’t one. I mean, come on, what did you expect? Not even Special Sauce is secret anymore. Here’s what I can tell you — I’ve seen some phenomenal pre/post-campaign lift for some brands. Absolute home runs. But I’ve also seen some dreadful results. One of the things that we and other media researchers have studied for years is the “halo effect” of a given show or host on the credibility of a brand and an audience’s willingness to consider researching or even purchasing a new product or service. These effects are fairly well-known in advertising circles, and brands have paid premiums for years to engage the services of a radio host to provide a personal testimonial for their products. One of my favorites, from decades ago, was WFAN New York’s morning show host, Don Imus, shilling non-alcoholic beer. Imus, a noted recovering alcoholic, was fond of ending those live reads with this tag line, surely not cooked up in an agency: “Buckler — B U C K L E R. You’ll pee just as much, ‘cept not in a phone booth.”

Now, while these sorts of endorsements can work well, they aren’t required to make a great ad — years of well-executed Super Bowl ads put the lie to that. A great ad is a great ad, and ads still work. But here is the question I want to ask and answer here about podcast advertising. We have ample evidence that a host, and even the content itself, can provide a “halo” for a brand. But does the fact that the brand is advertising in a podcast, in and of itself, impart that same halo?

The short answer: no. Taking an ad that ran, say, in broadcast radio and dropping it in a podcast adds no halo, no additional lift, no “kiss” just from being in a podcast. It’s an ad, and a listener perceives it as an ad, not as a podcast-specific special snowflake. When Bill Simmons does his reads for SeatGeek, they aren’t effective because they are in a podcast. They are effective because the host is known, loved, and trusted by an audience that attends sporting events, and SeatGeek sells tickets to sporting events. Those ads would be equally effective if Simmons executed them in a syndicated radio show or on a TV talk show. The universal truth of the poorly-performing brand lift studies I’ve seen is this: they were lousy ads. The podcast couldn’t save them. Or, as Jerry Lewis once told Stanley Kubrick while both were editing films, “you can’t polish a turd.”

There are a number of things that make an ad, a turd. These things are universal across all media, not just podcasting. Execution. Creativity. Relevance. Connection. Context. Host endorsements are not required: pop quiz — what insurance company can save you 15% in 15 minutes? You learned that from a gecko. But if an advertisement itself doesn’t connect with an audience, the fact that it is in a podcast isn’t going to save it.

But, here is the corollary: if a podcast can’t save a crappy ad, a crappy ad can sink a podcast. And soon, this is going to matter much more than you think. There’s not much difference in how the exact same ad is received on a podcast vs. on broadcast radio. But there is a crucial difference in how they are measured.

Broadcast radio is measured in something called “the quarter-hour,” a mythical unit of time that in no way resembles fifteen minutes. Instead, for many commercial broadcast radio stations, if a respondent listens to 5 minutes in a given 15-minute window, they are given credit for a “quarter-hour,” even though it’s conceivable that they tuned away after five minutes and one second. True story. It’s also true that most commercial music stations run 12–16 minutes of commercials an hour, and some news-talk stations run even more. That means that 20–25% of an hour on commercial radio is advertising. And let’s be honest — it ain’t all good. And we know that people switch away from bad ads. But because of the way radio ratings are measured, a listener could listen to the album version of “Lyin’ Eyes” by the Eagles, then switch away as soon as a block of eight 30-second spots starts, and they would still be credited with one shiny, mythical quarter hour, even though they really had about 6 good minutes of peak Glenn Frey.

All of this means that bad ads aren’t punished on commercial radio, because the “resolution” of the measurement system isn’t fine enough. When you don’t even need to listen to most of a quarter hour to get credit for a quarter hour, the finer points of which ads were actually listened to and which ones caused switching behavior get lost, along with any incentive to get better. Want to fix issues of spot quantity and quality on commercial radio? Do away with the “quarter hour” and report second-by-second data, which is collected in larger markets. That’d fix something, right quick. But let me add that none of that is to say radio ads don’t work — many do, and there are reams of studies showing radio’s effectiveness. But the way that radio is measured ensures that a lousy spot or four isn’t going to sink the station — they’ll still get ratings credit, and people will come back, even if they switch away.

This has always frustrated me as someone who has done content and programming research for decades. You have one team, the programming team, who puts everything they have into their product: 45 minutes of content an hour. And you have a sales team that builds the other 15 minutes. But regardless of how separate these two efforts may or may not be, they are perceived by the listener as all one product. When content and sales are on the same page, you get Don Imus for Buckler. When they are not, you get Celine Dion and SCREAMING car commercials. It’s like ordering a dozen glazed old-fashioneds from Krispy Kreme, but getting nine, plus three dry, crusty cruller sticks. Nobody likes crullers. Even the name is disgusting.

J.P.Lon [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)], from Wikimedia Commons

Back to podcasting. Unlike commercial radio, podcasting is measured digitally and to an increasingly finer standard. Currently, we have client/player-level data from sources like Apple and Stitcher that tells us exactly how much of a podcast was listened to. And some notable companies in the industry are collaborating on a new measurement system (RAD) that will provide publishers with precise data on which ads were listened to, which ones were skipped, and which ones completely torpedoed the show.

Second-by-second measurement of podcasts is coming. And when it does, the impact of a crappy ad, or too many ads, will be as clear as day. Ads for irrelevant products, poorly-produced spots, and even host-read ads that ramble without a point for 4 minutes are all going to be skipped. And when ads get skipped, ads don’t perform. And when ads don’t perform, podcasting will suffer as an ad medium. It will truly become that bane of all marketing — another thing we ruined with advertising.

Again — and especially in the intimate realm of a podcast — listeners perceive the content AND the ads as all part of the “product,” the experience of consuming the show. Think of your podcast like a shopping mall from 1986. If the anchor store of your mall is, say, Barneys New York, and you invite in Spencer’s Gifts, Orange Julius, and Radio Shack to be your neighbor stores, your shoppers might be a little confused about what the deal with Barneys is. You’d either better replace that Orange Julius with a Teavana, or maybe just go home, Barney — you’re drunk.

By Source, Fair use, https://en.wikipedia.org/w/index.php?curid=5565823

All of this is to say that although there is no “secret sauce” to podcast advertising, podcasting as a digital medium is in a much more precarious position to ruin itself with advertising than radio, TV, or print; the consequences of slipping too many crullers in with the donuts, direr.

Your podcast is a recipe. Cook with the best ingredients. Make sure your audience likes those ingredients. And put your all into everything on the menu. We’re all counting on you.

Tom Webster

Written by

SVP, Edison Research. Co-author of The Infinite Dial, The Podcast Consumer, The Social Habit, and other widely cited studies. Other half of @tamadear.

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