A new study by Acast, the world’s largest independent podcast company and media agency OMD, demonstrates that podcast advertising is 34% more cost-effective than average media in driving brand awareness, Podnews reports. 

The research, which analyzed the Swedish market with a total ad spend of 2B SEK (~$190M) between 2021 and 2023, also finds that podcast advertising delivers 4.9 times the return on investment (ROI), making it one of the most profitable media channels.

The study, conducted by Acast and OMD’s analytics division Annalect, examined data from six different industries and 32 advertisers. Approximately 25M SEK (~$2.3M) of the total ad spend came from podcasts. Results show that podcast advertising provides the highest short-term return on ad spend (ROAS) at 4.2, surpassing social media (3.6) and radio (3.5).

Johanna Turner, Nordic Sales Director at Acast, notes that podcasting has evolved from a niche medium to a significant mass medium. The study confirms the effectiveness of podcasts as an advertising medium for sales and brand building.

Jesper Cederäng, Business Development Director at OMD, states that the study challenges the perception that podcasts are far from the point of purchase. He emphasizes that podcast advertising not only builds brands but also provides a strong return on investment.

The research also reveals that adding podcasts to a mix of TV and online videos can increase a campaign’s short-term ROAS by up to 18%.