Podcasters love YouTube. That’s making podcast advertising less predictable.
Ads that appear in video podcasts are alluring for visually-minded marketers but may perform worse on the whole than audio-only, according to a new study.
Podcast ads may be better heard than seen, a new study suggests, even as the popularity of video podcasting skyrockets.
Host-read podcast ads on YouTube are up to 25% less effective at driving purchases than in audio-only environments, according to research on more than 1,000 campaigns that was conducted by the marketing agency Oxford Road and the audio measurement firm Podscribe.
That could partly reflect consumers’ differing mindsets with each format, said Giles Martin, executive vice president of strategy at Oxford Road. Listeners on platforms like Apple Podcasts and Spotify tend to deliberately select shows, whereas YouTube audiences sometimes arrive via algorithmic suggestions, Martin said.
The listening experience can also be more intimate and immersive than the bustling, brightly lit environment of YouTube.
“With YouTube, a medium with a screen, you have thumbnails, other options competing for your attention and encouraging you to click away," Martin said. “So if your attention isn’t immediately grabbed within the first 30 seconds or the first two minutes, it’s very, very easy to lose viewers."
Google said in response that advertisers on YouTube already recognize the differences between audio-only services and its video ad offerings.
But ad spots in video and audio-only podcasts are often sold the same way, through the same channels and at the same price, Martin said. And Google’s longtime walled garden approach to measurement makes it difficult for advertisers to track campaigns consistently across video and audio-only channels, he added.
For the best part of two decades people consumed podcasts just by listening, and podcasters produced shows without a camera in sight. But shows looking to expand their audiences gradually began uploading episodes to YouTube, drawn by its huge consumer reach and tools for creators to make money.
YouTube by 2024 had surpassed Spotify to become the most popular podcast platform in the U.S., according to research firm Edison Research’s podcast measurement business. The company, part of Google, in February said that there are more than a billion monthly active viewers of podcast content on the platform. And some 71% of U.S. podcast creators now produce video versions of their shows alongside audio, with just under half of those podcasting in a video-only format, according to podcast trade association Sounds Profitable.
Creating visually compelling ads, especially ones that still make sense for consumers who are listening but not watching, isn’t easy. While many podcasters are happy to take the lead on producing high-quality, TV-like spots to keep viewers engaged, advertisers say, others simply read to the camera without adding any visuals more intriguing than a discount code.
But some podcast advertisers also say the effort is worth it.
“The visual storytelling, that makes all of the difference for us," because it allows consumers to quickly see how the product works, said Melton Littlepage, the chief marketing officer of identity security company 1Password.
Its results from podcast advertising increased when it began appearing on video podcasts last year, according to Littlepage. The company sends video podcasters marketing footage, brand assets and talking points, but usually lets the show producers develop the final ad.
“It does take a moment of time to forge that personal relationship with the host," Littlepage said, “but when they deliver a message about a sponsored product authentically in the tone and style of the podcast, audiences don’t click off."
Other brands are preparing to follow the consumer shift.
“Video podcasting is increasingly becoming the norm, and our approach reflects that," said Sara Brooks, chief growth officer at online therapy company BetterHelp, describing podcasts as the cornerstone of the brand’s marketing mix. Its experience of video podcast ads so far has been a grab bag of host reads to camera, recording combined with static images, and some fully produced segments, she said.
“Looking ahead to 2026 and beyond, we’re doubling down on visual opportunities," Brooks said.
YouTube hopes to keep video podcasting growing. Next year it plans to test a tool designed to turn audio podcasts into video even without cameras in the studio. Another tool will let podcasters swap out sponsored segments in their videos, which as of now are often hard-coded into the video file and still remain online even after a sponsorship ends.
Katie Deighton writes for WSJ Leadership Institute’s CMO Today. Reach her at katie.deighton@wsj.com.
