Audacy Study Uncovers the Big Value of Podcasts to CPG Brands

By creating custom studies with third-party measurement firms, audio publishers can provide insights to measure attribution and sales lift. That's critical to get large brands and key categories, including deep-pocketed consumer packaged goods (CPG) companies, to invest in the medium.

A pioneering brand-lift study for a skincare manufacturer to measure the impact of digital audio and podcast ads on in-store purchases was recently conducted by Audacy, whose audio ad inventory spans streaming, podcasting and AM/FM radio stations. The study examined a 24-week ad campaign across the Audacy Digital Audio Network, which targeted adults aged 18-54, with household incomes between $25,000 and more than $200,000.

The results of the study were critical for Audacy. "We've been looking for a way to measure CPGs," said Jay Green, Audacy's Vice President Podcast Tech and Strategy. "To be able to grow the podcasting medium, CPGs need to be a big part of it. They and their brand agencies need a way to quantify it."

The study was conducted to determine attribution and sales behavior after the ad exposure. The study monitored consumer behavior related to hearing the ad, purchasing the skin cream, and swiping a loyalty card to receive benefits. Data from the loyalty card was used to trace the purchase back to the ad exposure and tease out insights on purchase intent and behavior. The measurement teams linked listening to purchases by matching the exposed consumers' devices to household purchasing data from the loyalty cards.

"Having loyalty card data was a major plus because it is not something you can easily access in research," said Idil Cakim, Audacy's Senior Vice President of Research and Insights.

The study showed the skincare cream's podcast ads motivated its shoppers to try a product, spend more money, switch from competitors and even try out the brand's other products. It determined that:

• 23% of sales occurred within a week of hearing an ad.
• There was a 5% lift from consumers switching brands.
• Customers who heard the ad spent 11 cents more per visit.
• There was a 6% lift from consumers who heard four versions of the ad.
• 52% of purchases came from new customers.
• Customers purchased additional items from the skincare company.

"I thought it was phenomenal to see the halo effect for the brand," Cakim noted. "Customers were buying this product and others. Also, the number of new customers coming in was very impressive."

To design the campaign, the skincare company requested its ads run within several popular podcasts, including Happier With Gretchen Rubin and Guilty Pleasure. Audacy layered in other podcasts on its addressable network, which includes about 100 titles and can be targeted for factors like age, gender, education, household income and activities.

"We knew they wanted to hit a certain demographic or a certain type of audience," Green said. "They had an idea of what shows they wanted [included], and then the addressable network identified other shows that worked really well for them."

While a happy customer is always a goal, Green said the study achieves another key objective: It showed the CPG client and other brands how podcasts can lift sales and sway customers.

"It's important for brands to understand that podcast measurement continues to grow and what we can show our clients is nearly limitless," Green said. "Brands are now seeing they can use podcasting to get ahead of their competition."

This study affirms the impact of podcast advertising on consumers. With these studies in hand, Green said he hopes brands will dive deeper into the magic of podcasting. "You're not going to get these types of returns from any other medium, and that's the story for podcasting," he asserted.

There's no end in sight for other innovations related to consumer research that will prove digital audio's value even further. "Podcasting technology and marketers' understanding is growing by leaps and bounds, and every six months there is something new to try out and test," Green concluded.

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