News/talk radio has spent years debating whether podcasting competes with the radio show. That debate is long over. The data continues to show that the advertising dollars have decided it for us.
A new study from Magellan AI showed that podcast spending climbed 23% in the 2nd quarter. The increase came as advertisers expanded podcast campaigns and added thousands of new brand commitments. And on top of that, 1,297 brands advertised on podcasts for the first time.
Who spent the money? Insurance spending jumped 60% quarter over quarter, making it the fastest-growing industry tracked by Magellan AI. Energy followed with a 52% increase, while jewelry spending rose 47%. VPN advertisers also increased spending by 42%. Those are perfect industry fits for News/Talk listeners. They’re often business owners; they have disposable income, and they are incredibly engaged with the content they consume.
Radio Already Has the Infrastructure — It Just Isn’t Using It
Now, as for the content itself, what if I told you that there was a medium that already had the hosts? It already has the studios. It already has producers. It already has guests.
It already creates 15-20 hours of original content every week. And it has a massive platform to promote these podcasts.
A podcaster would kill to start with that infrastructure. Yet plenty of stations still treat the podcast as the place where yesterday’s radio show goes to die.
It just can’t be viewed as supplemental gravy anymore. And while many stations are doing a great job on this front, some are still too lazy. They’re simply uploading Hour 1, Hour 2, and Hour 3. There’s no hook in the headline. Segments aren’t broken up to serve the consumer.
Advertisers are either purposefully buying or, through programmatic ads, sampling their marketing with your brands. It’s our job to give the new advertisers and the (hopefully) growing consumer base a reason to keep coming back. Make their lives easy and hassle-free. Make the content stand out. And promote it.
Cannibalization Isn’t the Real Threat — Losing the Listener Elsewhere Is
The question isn’t whether podcasting will cannibalize radio. The bigger risk is allowing others to monetize our listeners after they turn off the radio.
And they will turn it off, not because they don’t like radio, but simply because other options are available and intriguing, and if they’re home, traveling, or just out for a walk, time-delayed listening may be more convenient for them. The consumer has more power than ever before. As does the advertiser. And to combat it, we have to put our best foot forward. Not just for the radio product.
From a host and programming perspective, if someone listens to your morning show live three days a week and consumes two segments via podcast the other two days, you haven’t lost a radio listener. You’ve extended the relationship with that listener. And now you’ve created additional inventory to monetize.
That’s where your cannibalization line becomes even stronger. Radio spent too long worrying that on-demand listening would replace terrestrial listening. But the consumer made that decision irrelevant. They’re going to listen on demand somewhere. The only question is whether they’re consuming your content when they do it.
The good news: It’s not too late. No matter what the doomsdayers claim. Every day, new podcasts launch from people with nowhere near talk radio’s built-in audience. Many will fail. A few will succeed. With talk radio’s head start, the opportunity is there for the taking. The time is now: Execute. Implement. Own the space.
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Pete Mundo is a weekly columnist for Barrett Media, and the Vice President of News/Talk for Cumulus Media, while also hosting “Mundo in the Morning” and programming KCMO Talk Radio in Kansas City. Previously, he was a fill-in host nationally on FOX News Radio and CBS Sports Radio, while anchoring for WFAN, WCBS News Radio 880, and Bloomberg Radio. He’s also the owner of the Big 12-focused digital media outlet Heartland College Sports. To interact, find him on X @PeteMundo.