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In the second half of 2023, brands began to embrace podcasts.
The concept of the “sound economy” is often explained as “letting sound create value to realise its potential.” As such, podcasts have become a popular choice for content consumption among young people due to their high value and listening companionship they offer.
Now, brands are entering the podcasting space in various ways, such as creating their own programs, placing advertisements, and sponsoring offline events. The popularity of branded podcasts also highlights more opportunities for the commercialisation of such mediums.
Consistent user profiles
This user profile is exactly what many brands are looking for. Given the high level of education of the podcast audience, branded podcasts with “long audio, in-depth content, a sense of companionship, and storytelling” are likely to be well-received.
In October 2023, Louis Vuitton launched its exclusive Chinese-language branded podcast on Little Universe. Italian luxury brand GIADA also started a podcast on Ximalaya, inviting well-known host Lu Yu to present the programme. The presence of luxury goods on podcasts aligns well with the brands, as the user groups are extremely compatible. The narrative of the podcast also extends the brand value further.
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Low cost and many approaches
In terms of marketing costs, according to the vice president of the internet media company Xinshixiang, the average cost per read on WeChat is currently 1.5 RMB ($0.21), the average cost per view on BiliBili is 0.6-1 RMB ($0.14), and the average cost per podcast listen is 0.05-0.1 RMB, giving podcasts a significant advantage in terms of traffic cost. Additionally, unlike short videos and graphics, podcast episodes are at least 30 minutes long, with the vast majority exceeding 60 minutes, offering numerous opportunities for content development and collaboration.
The unique charm of sound lies in its capacity to inspire imagination. Each listener, combined with their own emotional experience, can expand on the content, enhancing the dissemination and expansion of brand value. For brands without their own podcast programmes, partnering with popular podcasters is a common approach. Beyond typical oral podcast advertising, brands also favour customising programmes and other creative collaborations.
For example, the South African Tourism Board partnered with the stand-up comedy podcast “Wuliaozhai” (无聊斋) in January this year. In its travel-focused segment “See the world,” the two hosts spoke with two other comedians who had just returned from South Africa, enriching the travel experience with their comedic narratives, and bringing the audience the joy of being there. In the programme’s comments section, many listeners noted that South Africa seemed like a great destination for adventure.
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Long-term value
Brands entering the podcasting space must not rush to monetise.
Podcast listening is predominantly a solitary activity, where the listener does not typically fast-forward but chooses to engage with the content fully. During the listening process, listeners often follow along with the host, extending their own thoughtful ideas. This immersive dialogue experience helps develop a sense of dependence and trust between the listener and the host. Once a long-term and stable “companion relationship” is established, users will exhibit a high degree of loyalty to the host. It is at this point that podcasts begin to reveal their commercial potential.
Beauty brands such as L’Oreal, Estée Lauder, and Lancôme have all partnered with podcasts to launch special feminist-themed programmes. For instance, Lancôme collaborated with the podcast “GQ Talk” to promote the functional selling points of its new product “Uplift”. The host interviewed professional mixed martial artist Zhang Weili, discussing her legendary career and personal growth. This conversation conveyed the spirit of “uplift” to the audience, aligning with the product’s selling point. Podcasts are an ideal medium to propagate feminism as a brand ethos, extending its reach and impact.
Of course, a long-term approach does not mean neglecting immediate value creation. In 2023, Hema launched the programme “Hema Bobobo” (盒马啵啵啵). Despite creating quality content, the podcast has not yet reached 10K subscriptions after nearly a year, and its update frequency is inconsistent. Additionally, Chinese podcasts currently lack streamlined advertising agencies and testing systems, making it difficult to quantify marketing effects.
Nevertheless, the valuable uniqueness, sense of discovery, and long-term value of in-depth content may be the greatest benefits for brand marketing.