Podcast fuels Audio Market growth [REPORT]

MAGNA and VOX MEDIA have been tracking the meteoric rise of podcasts since 2020, publishing research on how podcasts fit into media strategy, followed by a look at the content creators and hosts in the world of podcasts and their influence on listeners. In a new study called “It’s All in the Mind(set)” released today, VOX MEDIA and MAGNA move the conversation beyond the medium and the makers to go deeper on how – and why – brands should consider listeners’ mindsets when advertising on podcasts.

Podcasts have leapt forward to become the primary driver of the digital audio market, representing 40% of ad sales ($2.5bn) in 2024 and forecasted to grow by +11% this year, according to MAGNA (U.S. Advertising Forecast, December 2024). As audiences flocked to the space, brands followed. Podcast growth is expected to continue to outperform the total digital audio market in 2025.

“It’s been exciting to see how both podcast audiences and advertisers have evolved over the past few years. Our new MAGNA research adds another dimension to how we understand listeners and how brands can derive even better returns on their media investments through tailored planning strategies,” said Dani Benowitz, Global Chief Negotiations Officer, IPG Mediabrands.

The new study’s mission was two-fold: First, figure out the predominant listener mindsets and build profiles. Then, utilize the data to formulate media planning strategies aligned to these mindsets. The mindset profiles uncovered insights like why they were listening, how they felt in the moment, where podcasts fit into their daily routines, and more. The researchers found a treasure trove of information after analyzing the detailed diaries kept by over 2,000 research participants (aged 18+).

The top 3 Mindsets were Indulgence (53%), Inspiration (31%), and Interconnect (16%). These were the listeners’ mental states during the podcast, not static states nor descriptors of specific people.

• The largest group – Indulgence Mindset – were joyful listeners who turned on their favorite podcast while at home or in a calm place to enjoy some “me time” and be entertained.
• Inspiration Mindset listeners were active go-getters, who sought mental fuel for their journey and chose a podcast – familiar or new – to boost their energy with quality content.
• The Interconnect Mindset included listeners with deep feelings, openness, and a high degree of trust, who wanted a sense of community and connection to the outside world.

A theme across mindsets was the integration of podcasts into listeners’ lives, and their engagement beyond audio – on social media through likes and shares of shortened content (58%), followed a podcast host on social (53%), purchased products advertised (29%), met fellow fans IRL (20%), etc.

“We keep audiences at the forefront of our podcast strategy,” said Bryon La Bumbard, VP, Podcast Partnerships, Vox Media. “When we can expertly align their listening preferences with both our programming content and advertisements from our brand partners, then we create a truly connected experience. Our research with MAGNA further empowers us to do this in a data-driven way, providing a holistic view across platform, audiences, and brands. This drives performance for our brand partners and, ultimately, better engagement with our listeners.”

How Advertisers Can Piece Together Podcast Strategies:

• Marketers and planners should work closely with podcasts to understand advertising topics, tones, formats, and lengths to appeal to the audience’s mindset. For example, people in an Inspiration mindset listen in short bursts – under 30 minutes – while on the go.
• Brands with a good story to tell could resonate with more than two-thirds of the podcast listeners identified in this study. People in the Indulgence and Interconnect mindsets preferred fewer, longer ads, with Indulgence preferring host-read ads or brand sponsorships.
• Whether you’re a beauty brand, travel business or tech company, podcasts represent an opportunity, with most listeners finding any product and service suitable for advertising.
• Tapping into mindsets rather than audience data like demographics and interests supports an omnichannel media strategy as podcast content is multi-platform. In addition to digital audio, fans want to engage across TV/video (53%), radio/broadcast (53%), and print (42%).

To download report, CLICK HERE.