From Fringe to Frontline: Podcasting’s Rise to New Revenue Path for Local Media and Agencies
Podcasting’s ascent has been steady but steep. Once dismissed as a hobbyist’s medium, it now commands 19% of daily ad-supported audio time among U.S. adults, second only to AM/FM radio’s 64%, according to Edison Research’s Share of Ear data cited in the Nielsen report.
Among younger demographics, the numbers are even more striking. Adults aged 18 to 34 devote nearly one-third of their daily audio time to podcasts. Hispanic audiences follow closely, with 24% of their audio time spent in the medium.
This shift in listening behavior has not gone unnoticed by advertisers. As linear media struggles to retain younger audiences, podcasts offer a rare combination of attention, intimacy, and influence.
While podcast advertising delivers across the board, Nielsen’s benchmarks show particularly strong performance in several verticals:
- Automotive: 8-point lifts in both brand affinity and information seeking.
- Consumer Packaged Goods (CPG): Solid boosts in purchase and recommendation intent.
- Financial Services: Strong performance in brand fit and consumer trust.
- Media, Retail, Tech, and Travel: Consistently high lifts across multiple measures.
Perhaps most surprising is how well podcast ads are received by listeners. According to Nielsen:
- 70% of listeners recalled hearing a brand.
- 66% felt the brand was a good fit for them.
- 37% described podcast ads as “interesting” and “believable.”
- 36% called them “natural.”
- 32% labeled them “authentic.”
This level of ad receptivity is rare in modern media. In an era of ad blockers and banner blindness, podcast listeners appear not only willing but eager to engage with brand messaging—especially when it’s delivered by a trusted host.
Host-read ads remain the crown jewel of podcast advertising. Nielsen’s data shows:
- 62% of listeners rate hosts as “likeable.”
- 42% say they are “credible.”
- 39% call them “relatable.”
Only 11% of listeners found hosts “boring,” and just 2% labeled them “untrustworthy,” underscoring the trust economy that underpins podcast advertising.
From a business perspective, podcast advertising offers several strategic advantages:
- High Engagement – Listeners are loyal and attentive.
- Targeted Reach – Niche shows allow precise audience targeting.
- Low Ad Avoidance – Ads are integrated and hard to skip.
- Cost Efficiency – Lower CPMs compared to video and TV.
Despite its strengths, podcast advertising is not without challenges:
- Measurement Complexity – Attribution remains a hurdle.
- Creative Quality – Poorly produced ads can backfire.
- Host Alignment – Mismatched endorsements can erode trust.
- Define Your Audience – Use data to identify relevant shows.
- Choose the Right Format – Host-read ads typically perform best.
- Vet the Hosts – Ensure alignment with brand values.
- Craft Authentic Messaging – Focus on storytelling, not hard sells.
- Track Performance – Use promo codes, URLs, and surveys.
| Platform | Function |
|---|---|
| Magellan AI | Competitive intelligence and ad tracking |
| Podsights | Attribution and analytics |
| Chartable | Campaign measurement and audience insights |
| AdvertiseCast | Marketplace for podcast ad buying |
| Podcorn | Connects brands with independent podcasters |
| Spotify Ad Studio | Self-serve podcast ad platform |
| Acast | Global podcast hosting and monetization |
Podcast advertising is poised for continued growth, driven by:
- Programmatic Buying
- Branded Podcasts
- AI-Powered Personalization
- International Expansion
- Smart Device Integration
As national brands pour more dollars into podcast advertising, local media companies and regional ad agencies have a unique opportunity to adapt and benefit from this shift.
???? For Local Media Companies
Local radio stations, newspapers, and TV affiliates can leverage their existing talent and community trust to enter the podcast space. By launching locally focused podcasts—covering news, sports, culture, or business—they can create new inventory for advertisers and deepen audience engagement.
- Opportunity: Develop branded podcasts or sponsored segments featuring local voices.
- Revenue Potential: Offer host-read ads to local businesses, mirroring the national model.
- Strategic Advantage: Use podcasting to retain younger audiences who are drifting from traditional formats.
Podcast advertising opens a new frontier for sales reps accustomed to selling print, radio, or digital display. Reps can now pitch audio storytelling as a premium product—one that delivers measurable brand lift and emotional resonance.
- Action Step: Educate clients on podcast ad effectiveness using Nielsen benchmarks.
- Sales Strategy: Bundle podcast ads with traditional media buys to increase reach and frequency.
- Client Value: Position host-read ads as trusted endorsements, especially for community-based brands.
Agencies serving regional clients can use podcasting to elevate creative strategy and expand media planning. With access to niche audiences and high engagement, podcast ads can complement broader campaigns and offer cost-effective storytelling.
- Creative Opportunity: Produce authentic, host-read scripts tailored to local culture.
- Media Planning: Integrate podcast ads into cross-channel strategies with radio, social, and OTT.
- Measurement: Use promo codes and listener surveys to track ROI and refine messaging.
Podcasting may be a global medium, but its power lies in personal connection—and that’s where local media excels. By embracing podcast advertising, local media professionals can not only stay relevant but lead the next wave of audio innovation, turning community voices into compelling brand platforms.
Source: https://www.nielsen.com/wp-content/uploads/sites/2/2025/08/Nielsen-Podcasting-Today-Aug2025.pdf
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