Podcasting in a Recession

Look, we may or may not be heading for a recession. But whether we are or not, it's always a good idea to be prepared. So, on today's episode of Good Morning, Podcasters, we're talking about podcasting during a recession, and moreover how a recession may impact podcast advertising spends.

The Unfortunate Truth

As a marketing agency owner, it hurts to say this, but marketing and advertising budgets are usually the first things to get cut when an economic downturn hits the market.

It's not the best practice to cut those budgets. Many recommend actually hitting the marketing gas pedal during a downturn since the competition might be easing up, but there are a lot of people to please—including shareholders.

What to Expect

Podcasters will likely see advertisers cut back on spending, leading to a decrease in demand for advertising on podcasts. You as a podcaster may expect to see fewer advertising opportunities, lower rates for advertising, and a competitive market of those competing for the limited ad bucks. Additionally, sponsors may prioritize more established or high-performing podcasts, leaving smaller or newer podcasts with fewer options. 

Brands that continue advertising may be more interested in your show’s performance and metrics than they historically have been. They will likely take a more focused look at their Cost Per Acquisition for each show. There may be more time spent proving your show’s worth to your brand partners.

The good news is that podcast advertising is still very affordable, fans are typically loyal, and podcast advertising is typically pretty easy to track - through download metrics, promo codes, and unique links. 

That said, it’s a lot easier for a brand to bail on a marketing budget with a number of podcasters and podcast networks than it is to cancel a national network ad buys. Podcasts are also a lot less easy to track than search and social ads. 

So, if you start hearing more about big brands canceling their podcast ad plans, if you start to hear “no” from partners who typically say “yes,” or if, you know, we enter a full-blown recession, you’re going to need to be more flexible, prepare to offer more information about your audience and show performance data, and look for creative opportunities in the market to connect brands with your audience. 

Hopefully none of that happens. But if it does happen, hopefully you’ll be prepared.