Podcast advertising: the new winning strategy for luxury car brands?

"As the future of automotive consumption unfolds, more and more marketers are discovering that podcasts could well be the next great advertising frontier. " These words are the conclusion of the Nielsen report, which paints an extremely positive picture of the podcast industry and its close connection to the automobile.But what about the luxury automotive sector?My friends, we've done some research, and what we've found should be of GREAT interest to you.It's a promise! Keep scrolling, it's a blast!

Podcast: an audience similar to that of luxury car owners

A growing audience

It's no secret that the number of podcast listeners has been growing steadily, and even faster since the covid crisis.

source: Statista June 2022

For those who still have doubts, we invite you to discover our article on podcast trends 2023, and in particular the part on the mass arrival of influencers.

An audience that resembles luxury car consumers

For luxury car brands, podcast user demographics are key.

An audience in the USA that resembles luxury car consumers

In the United States, the Edison study shows that the majority of regular podcast listeners fall into these categories: Full-time employees,

• Full-time employees,
• Millennials,
• Income of 100k or more,
• Graduate diploma.

And what about podcast listeners in the rest of the world?In the rest of the world, other studies correlate with these results.

An audience in Saudi Arabia that resembles luxury car consumers

A 2022 study of podcast listeners in Saudi Arabia found that the largest percentage of podcast listeners :

• Management positions (35%)
• Millennials (44%).

An audience in China that resembles luxury car consumers

The 2020 study on Chinese podcast listeners and consumption revealed that :

• The majority of listeners come from major cities (Beijing, Shanghai...).
• Are highly educated (86% hold a bachelor's degree or higher).

And in France?

An audience in France that resembles luxury car consumers

In France, it's exactly the same: the vast majority of podcast listeners are :

• Executives at 27% (CSA-Havas study, 2021)
• 50% live in or near a large city (CSA-Havas study, 2021)

To find out more, read our article on Why the French listen to podcastsWhat dothese statistics tell automakers?Actually, the math is simple.According to all this data, the audio content sector consists mainly of listeners who :

• Have the power to make major purchasing decisions (like buying a car),
• Are interested in products that will make their daily lives easier.

A $302 billion opportunity

Another analysis, carried out by Nielsen in the USA, indicates that of the 35.8 million people who were buying vehicles online at the height of containment, 10.5 million of them were listening to podcasts.This represents a $302 billion opportunity for the automotive sector and luxury car brands.Yes, you read that right, $302 billion!

An audience sensitive to audio podcast advertising

According to theIAB study, the automotive category will only contribute 2% of podcast industry revenues in 2019, as it did in 2018.Doesn't that sound like a lot?Yet the automotive sector, like the insurance and pharmaceutical industries, is increasing its investments.Worse still, at times when podcast advertising investments are declining, the automotive sector continues to increase (Source: Marketing Brew).

Why are luxury car brands turning to podcast advertising?

50% of Internet vehicle buyers have visited a website for more information after hearing a podcast ad(Nielsen Study 2021).This statistic is even more impressive when you consider that this reaction is 5% higher than the average podcast listener.Similarly, more Internet vehicle buyers (26%) have visited a website to buy/order the advertised product than the average podcast listener (23%).

These figures are confirmed by the Veritonic study, which shows that :

• 61% of car buyers were likely/extremely likely to click on a banner to find out more,
• 63% were likely/extremely likely to click on a website
• 56% would interact with an ad via voice to find out more if invited.

As you can see, the podcast sector presents an infinite opportunity, not least because the profiles of podcast listeners are so closely aligned with those of car buyers.

How do luxury car brands use podcast advertising?

Luxury car manufacturers have clearly understood the value of podcasts in reaching potential buyers, as audio media serves the brand and the sector to :

• Spread their message,
• Staying "top of mind",
• Changing consumer perceptions,
• Building loyalty (Essential during a major economic crisis)

Except that podcasts may well be a secret new marketing weapon, but many players in the automotive industry are already using them. To stand out from the crowd, there's only one way... Differentiation!But how?Read on, I'll show you!

A wide range of audio creativity

11.3% of unique creations by brand (Veritonic study)This statistic puts Mercedes-Benz in the vanguard when it comes to the quantity of different audio creations used in the automotive sector, followed by :

• Kia (9.3%),
• Chevrolet (9.2%),
• Ford (8.6%),
• Hyundai (6%).

A diversification of voices

Historically, the majority of car advertisements (75%) have always featured male voices, but here again, the automotive sector is breaking new ground: according to the Veritonic study :

• 52% of advertising is carried by male voices,
• 30% of ads feature male and female voices,
• 17% of advertisements feature women's voices.

And among men interested in cars, the #1-ranked ad uses a lead female voice.

Podcast ads read by the host

Finally, host-read podcast ads are very popular.Yes, as with other sectors moving into podcast advertising, the ability to use host-read ads help to :

• Get their message across discreetly,
• Integrate naturally into each episode.

Avner UZAN