Podcasts

Ad Nauseam: A Guide to Sounds Profitable’s Latest Study

MaryKate Breslin, Senior Manager, Market ResearchSep 19, 2024

Despite tremendous growth and mainstream adoption, the podcast industry has faced persistent challenges related to frequency, ad repetition, and overall consumer perceptions of podcast advertising. To help contextualize these concerns, Sounds Profitable conducted a new study with Signal Hill Insights: Ad Nauseam: Frequency, Repetition, and Consumer Perceptions of Podcast Advertising.

The study surveyed 1,011 American adults 18+ who indicated that they had listened to at least one podcast in the last week. It examined listener ad-skipping behavior, the reasons for this behavior, and their expectations of advertising in the podcasts they consume. As one of the many sponsors of Sounds Profitable’s Research Series, we’re breaking down their findings to help address these burning questions.

So, what do listeners consider too much when it comes to podcast advertising—and is there a direct correlation between the quantity and quality of podcast advertising on listener behaviors? Let’s take a look.

Podcast Ads: The Ads that Speak Volumes

In an age where consumers are constantly bombarded with ads, capturing and maintaining attention has become increasingly challenging. Traditional advertising media, such as TV, radio, and print, have seen their effectiveness wane as audiences become more adept at tuning out commercial content.

Meanwhile, it’s no secret that podcast advertising is powerful and effective, especially compared to other media channels. The Ad Nauseam study found that nearly one in two podcast listeners enjoy the ads or don’t mind them when listening to a podcast. Podcast ads are credited by 72% of consumers as “influential” in their decision to purchase a product or service they heard about on a podcast, even if it was encountered in other media.

You may find it surprising that eight in 10 SiriusXM Podcast Network listeners said they listened to all, most, or some of the ads in the last podcast episode they consumed. This stems from strong listener engagement, personal endorsements from trusted voices, minimal interruptions, and less ad clutter, reducing ad fatigue. All of these factors blend to create a perfect environment, in which listeners are highly receptive to advertising.

The SiriusXM Podcast Network Listener Embraces Ads

There’s no denying it: When it comes to leaned-in listeners, the SiriusXM Podcast Network audience takes the cake. The study found that 59% say they enjoy or don’t mind the ads they hear when listening to a podcast. Their positive sentiment increases when it comes to hearing diversified ads in a podcast—not only are they generally receptive to ads, but 67% of listeners say they would be much more or somewhat more tolerant of ads in podcasts if they were different than what they typically hear. SiriusXM Podcast Network listeners are also 23% more likely to have listened to all of the ads in the last podcast episode they consumed with ads, and only 10% of listeners skipped the ads.

So, why are these listeners so receptive to podcast ads? The limited repetition, strong ad creative, and smooth transition from the show to the ad increases engagement among captive listeners.

Listeners place stock in the advertising they’re exposed to on podcasts. Therefore, to resonate with your audience, the quality of the ad is critical to a successful campaign.

Discover the Benefits of Repetition

Podcasts are the sound of discovery. They provide the time and space for hosts to develop a close rapport with their audience, fostering a sense of trust and loyalty. When hosts share their personal experiences regarding a product or service, listeners are more likely to consider trying it, as the recommendation feels more authentic than a traditional advertisement.

Through this intimate environment and deep connection, listeners can all be considered valuable in-market consumers—especially SiriusXM Podcast Network listeners. In fact, 70% of our listeners say they have discovered a product or service they liked through a podcast ad (a 122 index vs. total podcast listeners), and 57% say they have purchased a product because of an ad they heard on a podcast (a 128 index vs. total podcast listeners).

However, for an advertisement to truly resonate with an audience, the ad must be heard more than once—93% of SiriusXM Podcast Network listeners who purchased a product or service due to an ad they heard on a podcast said they heard the ad two or more times before making the purchase. As a result of hearing the ad more than once, 79% of listeners say they purchased the product within the week of hearing it.

What’s most interesting about these findings is that among listeners who purchased the product or service due to an ad in a podcast, 86% say they encountered an ad for the product or service on other media channels before making the purchase. This is a strong testament to the efficacy of podcast advertising and how ad quantity can help reinforce your brand messaging, especially if your KPIs include lower-funnel actions or conversions.

The Perfect Balance Is Nuanced

Regarding ad frequency, the question is always “How much is too much?” The answer is, there isn't a one-size-fits-all solution. While no ad-supported medium is immune to ad-skipping, considering the listener's experience and aligning with their expectations can yield success for both the brand and the show itself.

We found that SiriusXM Podcast Network listeners are 45% more likely to say they appreciate the familiarity when hearing the same ad more than once in a single podcast episode, and they’re 54% more likely to say hearing the same ad more than once in a single episode increases their interest of the advertised product or service.

Although many advertisers and marketers are wary regarding high frequency, there’s something to be said about these learnings. Repetition helps cement the CTA in listeners' minds, making it more likely for them to remember and act upon it. It’s important to reiterate that ad repetition doesn’t always lead to negative consumer perception—74% of SiriusXM Podcast Network listeners say they have never stopped listening to a podcast because they heard the same ad too many times.

So, what makes it tolerable to hear an ad repeatedly?

It’s also important to point out that listeners do, in fact, appreciate variety—one in two SiriusXM Podcast Network listeners say they would prefer more variety in the products or brands advertised, even if it means a higher total number of ads. And when it comes to ad-skipping, listeners have clear motivators for doing so. SiriusXM Podcast Network listeners cited differences in volume (11%) and familiarity with the advertised product/service (32%) as two key reasons.

But above all, listeners are loyal to their shows and feel compelled to support their favorite podcasts. This, in turn, minimizes their desire to skip ads. So listeners don’t hate ads, and they acknowledge there’s an opportunity cost for doing so. The reality is that finding the perfect balance defies a simple explanation, but podcast ads are undeniably effective.

Engage, Convert, Succeed with Podcast Ads

Don’t be fooled by the heresy—podcast listeners are highly receptive to podcast ads. Strong creative messaging paired with a clear CTA will be the backbone of a successful campaign. And when that message is reinforced, listeners will remember and they will take action.

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