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Driving Success with Podcast Ads: How Lexus Steered Brand Perception in the Right Direction

By Audacy Insights Team

At Audacy, we’ve always believed in the power of Audio to create deep connections between brands and listeners. Podcasts, in particular, have emerged as an innovative space where brands can cut through the noise and truly engage with their audience. And when Lexus recently approached us with a unique opportunity, we knew that podcasts would be the perfect solution.

During this year’s annual Podcast Movement, our very own Kevin Greenwald, SVP, Advertising and Audience Products sat down with Nielsen’s Arica McKinnon, VP, Commercial Strategy & Insights to discuss the powerful impact of podcast advertising, and Lexus’ recent Audacy Podcasts success story.

Podcast Advertising Stands Out

In today’s media landscape, consumers are bombarded with ads from every direction. But podcasts offer something different—an uncluttered and immersive environment where ads feel like a natural extension of the content. Nielsen research shows that 63% of consumers believe podcast ads strike the right balance, compared to just 29% for TV ads.

It’s no wonder that podcast listeners are more engaged and more likely to act on what they hear. After hearing a podcast ad, nearly half of listeners visit a website for more information, and over a quarter go on to purchase the advertised product.

Podcasts ads drive consumers to make purchases – After hearing a podcast ad:

48%

visited the website for more information about the product advertised

More than 1 in 4

purchased the advertised product

Source: Nielsen Scarborough, Podcast Recontact Study (Listeners only) 2023 Release 2 Total (May 2024).

CASE STUDY

Lexus Takes the Wheel

Lexus came to us with a clear objective: they wanted to elevate brand perception for their new electric vehicle (EV) lineup. The challenge? Luxury vehicles require a significant amount of top-funnel nurturing to convert interest into sales. Traditional channels like TV and digital display ads are often expensive and crowded with competitors. Lexus needed a solution that would provide the broad reach of awareness-building efforts without sacrificing the personalized touch that’s so crucial for high-consideration purchases like luxury cars.

The Strategy:

Crafting the Perfect Podcast Campaign

We worked closely with Lexus to design a podcast advertising campaign that would resonate with their target audience. Here’s how we did it:

  1. Curated, Host-Read Ads: We created a series of host-read ads, each tailored to the specific podcast it would air on. These ads weren’t just another interruption—they were an integral part of the listening experience, delivered by trusted voices that listeners already knew and loved.
  2. Engaging New Buyers: By placing these ads across a range of unique podcast content, we were able to reach potential buyers in an environment where they were already highly engaged. Regardless of the podcast they’re tuned into, Lexus’s message was delivered with authenticity and relevance.
  3. Measuring Impact: We partnered with Nielsen to conduct extensive testing and surveys to understand the impact of the ads on brand perception. We didn’t just want to reach people; we wanted to make sure the message was landing in a meaningful way.

The Results:

A Win for Lexus

Lexus saw impressive results from their podcast campaign:

  • 14-point lift in brand familiarity: Listeners who were exposed to the podcast ads were significantly more familiar with Lexus’s EV models and more likely to associate the brand with trust and luxury.
  • 31-point lift in brand favorability among women aged 35-54: This demographic responded particularly well to the campaign, with many agreeing that Lexus’s electric vehicles felt truly luxurious.

Outperforming industry norms: The campaign didn’t just meet expectations; it exceeded them. Lexus’s ads on Audacy Podcasts outperformed Nielsen benchmarks, delivering high scores across all brand metrics.

With such an engaged audience tuning in, podcast ads excel at boosting upper funnel metrics like recall and awareness, which drive conversions and sales. By advertising on Audacy’s platform, Lexus’s EV campaign yielded significant lifts across all tested brand metrics and attributes, particularly in familiarity and favorability, effectively nurturing consumers along the path to purchase.

Arica McKinnon
VP Commercial Strategy & Insights, Nielsen

Key Takeaways: What We Learned from Lexus Campaign Success

The Lexus success story highlights several important lessons for any brand considering podcast advertising:

  • Personalization is Key: Tailoring your message to the audience and the platform is crucial. Host reads are particularly effective because they feel authentic and relatable.
  • Measure What Matters: Consistent measurement with Nielsen throughout the campaign allowed us to optimize performance and ensure that the ads were driving the desired results.
  • Podcasts Drive Impact: Whether you’re looking to boost awareness, drive conversions, or enhance brand recall, podcast ads offer a unique and effective way to connect with your audience.

At Audacy, we’re excited about the future of podcast advertising and the opportunities it presents for brands across industries.

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