“From the New York Times, I’m Michael Barbaro. This…is…The Daily.”
Michael Barbaro’s signature sign-on and The Daily have become as much a part of my morning routine as brushing my teeth. I listen to The New York Times’ podcast every day on my walk to work, and since I’m free of swiping and scrolling, my commute is now the most efficient part of my day. And I’m not alone.
15-percent of Americans listened to a podcast in the last week. That’s 42 million people replacing other streaming sites for podcasts as their primary source of news and entertainment. To add perspective, only 18% of Americans have listened to Spotify in the last month, and now that Spotify Premium subscribers outnumber free users, more listeners are paying to avoid companies intruding on their audio experience. Podcasts are quickly asserting themselves as the future of audio marketing and companies are adjusting.
By now anyone who has ever listened to a podcast has heard from Blue Apron. The meal-prep startup was an early adopter of podcast advertising and initial sponsor of several hit podcasts, including NPR’s “Serial” and The New York Times’ “Modern Love.”
Blue Apron advertises almost exclusively through audio, podcasts in particular. The company has found success playing in the audio space. As of 2017, Blue Apron’s valuation is just shy of $2 billion and sells over a million meals each month.
What truly made Blue Apron’s podcast efforts successful was its unconventional messaging strategy. The company used on-air testimonials from the podcast host rather than prerecorded segments from paid actors. Podcast hosts were encouraged to sample the product before recording an episode and give a genuine endorsement to their devout listeners.
This marketing strategy works because podcast enthusiasts, like myself, curate our listening experience. Hitting the subscribe button is not something we do lightly. When a show is added to our library it means it scratches a particular itch. This makes interest based targeting easier than ever.
If a company is looking to sell widgets to high-end tech junkies there is a podcast for that. If single 25-year-old female fitness buffs with extra spending money is their audience, “Bulletproof Radio” and “Half Size Me” are two podcasts that specifically speak to that demographic.
Some brands are taking this insight a step further: instead of investing millions of dollars searching for the perfect podcast that resonates with their customers, brands are creating podcasts of their own.
Blue Apron’s podcast, “Why We Eat What We Eat,” targets millennials inspired to stay in and cook rather than spend money at fancy restaurants. The show covers a wide range of food topics from what makes some people picky eaters to how to get the most out of your cooking experience. By creating an inviting space inviting for a particular demographic, Blue Apron reaches listeners hungry for their content.
“Why We Eat What We Eat” uses the same marketing strategy that made Blue Apron successful in the first place: subtlety. The podcast nods to its executive sponsor, but remains independently branded and avoids heavy-handed references back to the company. In fact, the only mention of Blue Apron from host Cathy Erway is a simple credit at the beginning and conclusion of each episode.
Blue Apron’s innovation of audio has inspired companies like Microsoft, eBay and Tinder to invest in podcast real estate of their own. In 2016, Tinder released its branded podcast, “Define the Relationship,” which covers dating in the digital age. It is exactly as you would expect, a mixture of insight and hilariously awkward stories from a familiar host, Jane Marie of “This American Life,” “Jezebel,” and “Cosmopolitan.”
“Define the Relationship” may be the brand’s best bet to shake its reputation as the “hook-up” app. The show offers mature insights to those serious about meeting someone. Tinder describes it as “part wisdom, part data science, part investigative reporting.”
The most successful podcasts all have one thing in common, none of them lose sight of what makes sponsorships so successful in the first place: the podcast! By keeping the focus on the quality of each episode, instead of the number of brand mentions, products spotlights and discount codes, companies are able to retain the integrity of the podcast and reach their customers in a more intimate setting. As a result, 65% of consumers are more likely to purchase a product they learned about from a podcast.
What truly sets podcasts apart from any other advertising medium are the podcasters themselves.
“People tend to have warmer feelings about advertisers on podcasts than other media, and they tend to remember us a lot more than on other media,” says Mailchimp’s director of marketing Mark DiCristina.
Arguably, two of the best podcasters in the business are NPR’s Sarah Koenig of “This American Life” and “Serial” and tech entrepreneur and angel investor Tim Ferriss of the Tim Ferriss Show. Both of whom appear in iTunes’ top 10 on a consistent basis.
Tim Ferriss has been dubbed “The Oprah of Audio,” and with over 70 million downloads, nobody is arguing. Tim Ferris is one of the most powerful influencers in the world and his endorsement of a product has a celestial impact with his followers. In publishing circles, it’s called the “Tim Ferriss Effect.” Although it has no grounding in science, the concept refers to the power a heavy-weight influencer and their podcast has on the ability to drive sales.
The question is then raised, what makes podcast hosts like Tim so special?
Among many unrelated things, their addiction to perfection translates into their shows. They are the masters at taking an interest and monetizing it. Not only are they two of the best in “the biz,” their dedication and selectiveness make them the most trusted endorsement on the airwaves.
The way podcast content is delivered is also a driving force to their success. Podcast personalities reach consumers in the most natural way-- through voice. Podcasts converge comfort and charisma to form an authentic messaging platform where ads carry the same tone and personality as the rest of the podcast making it a comfortable space for recommendations.
Take the second season of Malcom Gladwell’s popular podcast “Revisionist History.” Instead of saying “try Blue Apron,” he and his staff set up a blind, on-air taste test. Gladwell sampled two products and described each in a way that only he can. You could hear the flavor in his voice. Not only that, but his reaction was priceless. This is the best advertising has to offer.
From a marketing perspective, podcasts still have one great weakness: coveted user data remains silhouetted by Apple’s commitment to user privacy, making it hard to track consumer related activity.
Fortunately for digital marketers, that’s all about to change. New Apple Podcasts regulations will allow podcasters to track the moment users start, stop, and skip within an episode. This is exciting news for listeners as well. Podcasters will be able to choose how listeners encounter their shows: as episodic or serial seasons, and as full, trailer, or bonus episodes.
Ten years ago audio was written off as dead. Now 15% of the U.S. population tunes into a podcast every day. With greater accessibility to Wi-Fi and surge in mobile data the audio renaissance and podcasts don’t seem to be slowing down anytime soon. We are just scratching the surface of how stories can be told through the airwaves, making podcasts the most exciting way to reach the most niche of audiences.