The State of Retail in 2024
The United States has around four million retail businesses as of 2024. If you’re reading this right now, chances are you’re a decision-maker at a retail brand. If that’s the case, it’s also likely you’re running or have run a Google Ads campaign. If all of that is true, there’s a good chance you’ve seen your cost per acquisition (CPA) rise over the past year, as it has in 91% of industries. Saturation, inflation, and a few other “ations” are the culprits behind this loss in efficiency—but there’s hope, podcast advertising.
Exploring Alternative Advertising Channels
With the average CPA for a retail brand using Google Ads hovering around $45, it’s hardly surprising that many marketers have turned their attention to other channels. Facebook and Instagram ads, Snapchat, TikTok, Youtube and even Pinterest. However, one of the more underutilized and still growing channels are Podcasts. Podcasts are niche, targetable and intimate, the perfect combination for retail products. Selling a new running shoe? There are podcasts for that. Have a supplement brand you want to promote? Podcasts for that, too. High end cookware and tea kettle brand? Don’t worry, we’ve got podcasts for that.
Building Relationships Through Podcasts
Whether you pick host read ads or agency produced, podcasts allow the ability to align your brand with a niche, and if host read, partner with an influencer. Podcasts are famously one of the most intimate mediums, with host and listener often existing in a powerful parasocial relationship. Finding a podcast host who both aligns with your brand mission and can give an authentic endorsement is a powerful way to introduce your product to a new audience.
This relationship is a valuable tool, but it’s important to recognize podcasts are still very effective even with agency spots. A study conducted in Australia found, “podcasts garner 44% more mental availability than other digital channels, with advertising also viewed to be 30% more trustworthy when heard on podcasts rather than when seen on social platforms.” (Inside Radio) So if for one reason another host reads don’t make sense for your brand, podcast advertising still does.
The Efficiency of Podcast Ads
As of 2024, 80% of brands worldwide run Google Ads and there’s a good reason for it. Google ads are a solid base for a digital campaign, but relying on them entirely is a trap that many fall into. Podcasting is a great addition (or sometimes replacement) offering a new frontier to stand out from the competition.
Podcast ads have less saturation, but not only that they’re more efficient. While the average retail CPA on Google ads is $45, it comes in at a mere $20 for podcast ads. That’s twice the conversions for the same price, and that’s without mentioning the branding you receive through podcast advertising. Unlike Google Ads, podcast ads are designed for more than just bringing in a sale. In 2023 the IAB reported that 61% of podcast ad budget was being spent on brand awareness. That’s up 13% YoY, while still working extremely efficiently for direct response retail, as evidenced by the low CPA.
How To Integrate Podcast Advertising Into Your Strategy
- Identify Your Audience: Know who you want to reach, where and what the offer is.
- Find Your Niche: Find podcasts and/or hosts that align with your brand.
- Test Test Test: Find a few podcasts and do a test of at least 5-8 weeks, don’t despair if you don’t see something right away. New advertising channels take time.
- Measure: Whether you’re going to use promo codes, post purchase surveys, brand lift studies, or pixels, make sure to track your results.
Google Ads are a solid channel that gets results, and they’re not going away anytime soon, but as competition increases and expenses rise, it’s foolish not to explore other options. Whether you are looking to promote your brand nationally, drive traffic to your website, or drive listeners to specific retailers locally, podcasts can help. If you think your brand might be a good fit for podcast advertising, fill out our lead form or give us a call. We’ll help find the right shows and hosts for your brand, and build out an efficient buy that drives results.
Harry Richman is Digital Media Strategist at The Radio Agency a national advertising agency 100% focused on creating and managing sound advertising campaigns through the medium of radio. You can reach him at [email protected].
