Latest / The CMO Podcast with Fexingo: Marketing Leadership, Budgets, and Executive Strategy / Why CMOs Are Turning to Podcast Advertising in 2026
Transcript
- Lucas: Luna, I was looking at the latest IAB numbers from last month, and podcast ad revenue in the US crossed four billion dollars in 2025. That is not a rounding error anymore. Luna: Four billion — that is serious. And it is growing faster than most other digital channels, I think close to twenty percent year over year. Lucas: Right around twenty percent, yeah. And what is interesting to me is that a lot of CMOs I talk to are now actively reallocating budget into podcast advertising — not just as a test, but as a core part of their media mix. So I want to dig into why. Luna: Before we go deep — and I know this is a topic that resonates with our audience who are often the ones making these budget decisions — I want to mention something. If these marketing conversations have sparked something you have actually used in your own work, and you want to help us keep the show ad-free and independent, you can support us at buy me a coffee dot com slash fexingo. It is a really simple way to chip in. And honestly, it is what lets us keep digging into topics like this without any sponsor pressure. Lucas: Absolutely. And we really appreciate everyone who has done that — it makes a difference. Okay, so back to podcast advertising. One reason CMOs are leaning in is the engagement. Listeners are incredibly loyal. They stick with episodes, they trust the host. Luna: Right. And that trust transfers to the ad. Especially host-read ads — they feel like a recommendation from a friend, not a banner interruption. Lucas: Exactly. There was a study from Nielsen — I think it was 2023 — that showed podcast ads drive a nearly ninety percent brand recall. Compare that to, say, a pre-roll video ad where recall is maybe thirty percent. The difference is stark. Luna: And that is why you see companies like Shopify and HelloFresh doubling down. They have been running podcast campaigns for years and they keep scaling. Shopify even has its own podcast network now. Lucas: Right. They sponsor dozens of shows, and because they use unique promo codes, they can attribute sales directly to a specific podcast. That measurability is a huge reason CMOs feel comfortable spending more. Luna: But it is not just direct response. I think a lot of brand marketers are using podcasts for upper-funnel awareness too, especially because you get that halo effect of being associated with a trusted host. Lucas: Absolutely. And the targeting is getting better. Programmatic podcast ads are now a thing — you can buy audience segments across shows using data from the podcast host, like Podsights or Magellan AI. So you are not just buying a show; you are buying a specific listener profile. Luna: That is a game changer. So CMOs can now combine the trust of host-read with the efficiency of programmatic targeting. What is the catch? Lucas: The catch is scale. Podcasts are still a relatively niche medium compared to social or search. If you need to reach fifty million people in a week, a podcast campaign probably is not going to get you there. But if you want to reach a highly engaged, specific audience over time, it is incredibly efficient. Luna: And measurement is still imperfect. Attribution is easier with promo codes, but for brand lift, you still need surveys or panel data. It is not as real-time as digital display. Lucas: True. But the IAB has been pushing for better measurement standards. In 2025 they released new guidelines for podcast download metrics, trying to eliminate fraud and make impressions more comparable to other media. That gives CMOs more confidence. Luna: I talked to a CMO at a mid-size B2B SaaS company last month. She said they shifted about fifteen percent of their digital ad budget into podcasts over the past year. Her reasoning was that their target buyers — IT directors — are heavy podcast listeners, and the host-read ads generate more qualified leads than LinkedIn ads. Lucas: That is a great example. B2B is actually a fast-growing segment for podcast ads. Shows like 'The Twenty Minute VC' or 'Marketing Over Coffee' have built loyal professional audiences. And the hosts often read the ads themselves, which gives the sponsor instant credibility. Luna: So the trend is clear. But I want to press on the creative side. A lot of podcast ads still sound like they were written by committee — too many bullet points, too much jargon. What makes a great host-read ad? Lucas: The best ones sound like the host actually uses the product. The host tells a personal story — 'I started using this tool and it saved me two hours a week.' That authenticity is the whole point. If it sounds scripted, listeners tune out. Luna: And the length matters. A sixty-second ad can work if it is tight, but I have heard two-minute ads that feel like an infomercial. The sweet spot seems to be around ninety seconds, with a clear call to action. Lucas: Agreed. And the best calls to action are specific — 'go to example dot com slash podcast for twenty percent off' — not just 'visit our website.' You need that trackability. Luna: So for CMOs listening today: if you are not already testing podcast advertising, what is your advice? Lucas: Start small. Pick two or three shows that your target audience actually listens to — not just the biggest shows, but the ones where the host has a real connection with the audience. Run a three-month test with unique promo codes. Measure cost per acquisition and compare it to your other channels. Luna: And do not forget about dynamic ad insertion. That lets you serve different ads to different listeners of the same episode based on geography or behavior. It makes podcast ads more like programmatic display. Lucas: Right. That technology has matured a lot. And it means you can run a campaign across many shows but keep the message consistent for each audience segment. Luna: One more thing — I have seen some CMOs use podcasts as a testing ground for messaging. Because host-read ads are conversational, you can test different value propositions and see which one gets the best response before you roll it into more expensive channels. Lucas: That is smart. And the feedback loop is fast if you use a unique promo code per show. You know within a week which message is resonating. Luna: So podcast advertising is not just a niche channel anymore. It is becoming a core part of the media mix for many CMOs. Lucas: Absolutely. And with revenue crossing four billion and growing, it is only going to get more attention from marketers. The key is to do it right — focus on authenticity, measure everything, and be patient with scale. Luna: I think that is a good note to end on. Thanks for listening to The CMO Podcast. We will be back next week with another deep dive.