NIELSEN PODCAST INSIGHTS A MARKETERS GUIDE TO PODCASTING Q3 2018 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved.2 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. INSIDE THE SHOPPING CART OF PODCAST FANS Podcasting continues to grow year after year and with that comes more investment from brands both big and niche. Every month more advertisers are adding podcasting to their media plans. One notable segment turning its attention to podcasting is the fast-moving consumer goods (FMCG) industry, also commonly known in the U.S. as Consumer Packaged Goods (CPG). With this in mind, we continue to share insights mined from our significant Homescan panel coupled with an online questionnaire of those panelists who say “Im a fan of Podcasting.” Previous reports from Nielsen have shown the podcast audience to be young, educated and affluent. The podcast listener tends to spend more at the grocery store on a weekly basis according to our research (see chart below). Advertisers who can leverage the podcast audience may find a greater ROI since this group tends to spend more. BRUCE SUPOVITZ SVP, SALES DIRECTOR NIELSEN AUDIO These stats and those in the coming pages are strong directional indicators of which brand categories do well with what genres of podcasting. In addition, we also highlight the buying power of “avid fans” of podcasting. This report will help provide key steps as we take a virtual tour up and down the grocery aisles to match podcast genres with consumer products. Source: Nielsen Scarborough USA+, Release 2 2017 AVERAGE 7-DAY GROCERY SPEND 3 MAKING THE CONNECTION BETWEEN CONSUMER PURCHASE BEHAVIOR AND PODCAST AUDIENCES BY MATCHING PURCHASE BEHAVIOR IN THE NIELSEN HOMESCAN PANEL TO FANS OF PODCASTS, NIELSEN IS ABLE TO QUANTIFY THE VALUE OF CONSUMERS WHO LISTEN TO PODCASTS. 3 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved.4 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. TOP 50 PRODUCTS PURCHASED ANNUALLY BY PODCAST FANS BASED ON U.S. HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18. RANK PRODUCT CATEGORY BUYING HHLDs 1 Snacks 99% 2 Pet Food 68% 3 Paper Products 98% 4 Cheese 97% 5 Bread & Baked Goods 99% 6 Carbonated Beverages 92% 7 Candy 98% 8 Milk 97% 9 Vitamins 84% 10 Medications/Remedies 92% 11 Tobacco 30% 12 Cereal 94% 13 Coffee 76% 14 Condiments/Gravies/Sauce 98% 15 Pet Care 59% 16 Canned Juices/Drinks 93% 17 Yogurt 85% 18 Beer 40% 19 Wine 44% 20 Detergents 93% 21 Frozen Pizzas 82% 22 Bottled Water 87% 23 Liquor 34% 24 Cookies/Ice Cream Cones 93% 25 Prepared Foods-Dry Mixes 92% 26 Hair Care 86% 27 Cough & Cold Remedies 80% 28 Frozen Vegetables 90% 29 Nuts 81% 30 Soup 94% 31 Breakfast Foods 81% 32 Canned Vegetables 92% 33 Oral Hygiene 91% 34 Ice Cream 85% 35 Skin Care 76% 36 Crackers 92% 37 Refrigerated Juices/Drinks 77% 38 Butter & Margarine 91% 39 Wrapping Materials/Bags 91% 40 Tea 80% 41 Personal Soap/Bath Needs 88% 42 Eggs 93% 43 Laundry Supplies 85% 44 Jams/Jellies/Spreads 87% 45 Salad Dressings/Mayo/Top 91% 46 Spices/Seasoning/Extract 91% 47 Disposable Diaper 23% 48 Household Cleaners 86% 49 Baby Food 18% 50 Shortening/Oil 84% The grocery store is full of national brands looking to advertise to an engaged audience and leverage digital channels for activation. Podcast advertising has a ripe opportunity to connect avid* listeners with their favorite brands in unique and creative ways. This list of the top 50 products that podcast audiences spend their money on is the first step at identifying these opportunities. On the following pages, we will examine each genre and identify specific products that have higher consumption levels among avid fans. This will help advertisers identify which podcast genres are a good fit for their specific campaigns.5 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. TOP GENRES OF PODCASTS AMONG AVID* FANS BASED ON U.S. HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18. Avid fans are driving the growth of podcasting and this report shines a light on these core listeners. More than 61 million households in U.S. have a fan of podcasts in the music genre. 37 million of these households identify as avid fans (61%) while 24 million consider themselves casual fans. Other mainstream genres like comedy, TV and movies attract a large portion of avid fans. The best thing about podcasting is the diversity of content that lets nearly everyone find a program they can connect with. In this report we will dive deep into the avid fans (core listeners) of each genre to see how different they are from one another. PODCAST GENRE TOTAL HHLDs CASUAL FANS AVID FANS AVID PERCENTAGE Music 61.1M 24.1M 37.1M 61% TV & Movies 60.5M 23.6M 36.8M 61% Comedy 59.9M 30.1M 29.8M 50% Technology 58.9M 31.2M 27.2M 46% Games & Hobbies 52.5M 27.5M 25.0M 48% Health & Living 57.2M 33.7M 23.5M 41% Sports 49.8M 26.7M 23.0M 46% Kids & Family 58.7M 35.7M 22.9M 39% News & Politics 57.0M 35.0M 22.0M 39% Science 57.5M 36.7M 21.0M 36% Religion & Spirituality 49.1M 30.5M 19.0M 38% Society & Culture 57.1M 40.9M 16.2M 28% Arts 54.7M 38.7M 16.0M 29% Business 52.0M 39.5M 12.6M 24% 6 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. ARTS GENRE PROFILE AVID* FANS OF ARTS PODCASTS ARE HEAVY CONSUMERS OF LIQUOR, BABY FOOD, HOUSEHOLD CLEANERS, ORAL CARE AND VITAMINS ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE ARTS GENRE 1 Liquor $ 122.17 $ 147.01 2 Baby Food $ 115.20 $ 130.37 3 Household Cleaners $ 27.68 $ 30.20 4 Oral Hygiene $ 36.51 $ 39.08 5 Vitamins $ 99.70 $ 106.21 6 Beer $ 113.32 $ 120.41 7 Tea $ 34.53 $ 36.68 8 Hair Care $ 49.84 $ 52.30 9 Pet Food $ 182.84 $ 189.86 10 Pet Care $ 87.15 $ 90.47 11 Skin Care $ 45.68 $ 46.83 12 Candy $ 95.01 $ 97.33 13 Cookies/Ice Cream Cones $ 47.87 $ 48.88 14 Ice Cream $ 37.97 $ 38.76 15 Wrapping Materials/Bags $ 33.94 $ 34.44 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF ARTS PODCASTS LIQUOR $774,793,793 BABY FOOD $367,004,546 HOUSEHOLD CLEANERS $415,113,806 ORAL CARE $577,522,988 VITAMINS $1,436,599,554 AVID FANS OF THE ARTS GENRE ARE IN 16 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.7 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. BUSINESS GENRE PROFILE AVID* FANS OF BUSINESS PODCASTS ARE HEAVY CONSUMERS OF LIQUOR, WINE, HOUSEHOLD CLEANERS, SOAP/BATH PRODUCTS AND BEER ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE BUSINESS GENRE 1 Liquor $ 122.17 $ 152.60 2 Wine $ 105.70 $ 119.78 3 Household Cleaners $ 27.68 $ 30.87 4 Personal Soap/Bath Needs $ 33.18 $ 36.77 5 Beer $ 113.32 $ 125.14 6 Nuts $ 46.48 $ 50.58 7 Oral Hygiene $ 36.51 $ 39.25 8 Tea $ 34.53 $ 36.93 9 Detergents $ 55.05 $ 58.56 10 Skin Care $ 45.68 $ 47.97 11 Bottled Water $ 57.79 $ 60.67 12 Hair Care $ 49.84 $ 52.28 13 Pet Food $ 182.84 $ 191.03 14 Cookies/Ice Cream Cones $ 47.87 $ 49.45 15 Coffee $ 83.44 $ 86.08 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF BUSINESS PODCASTS LIQUOR $604,592,771 WINE $646,497,412 HOUSEHOLD CLEANERS $336,178,764 SOAP/BATH PRODUCTS $404,679,035 BEER $621,175,111 AVID FANS OF THE BUSINESS GENRE ARE IN 13 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.8 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. COMEDY GENRE PROFILE AVID* FANS OF COMEDY PODCASTS ARE HEAVY CONSUMERS OF BABY FOOD, TEA, PET CARE, BEER AND CARBONATED BEVERAGES ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE COMEDY GENRE 1 Baby Food $ 115.20 $ 131.37 2 Tea $ 34.53 $ 38.75 3 Pet Care $ 87.15 $ 96.97 4 Beer $ 113.32 $ 122.35 5 Carbonated Beverages $ 122.04 $ 131.14 6 Candy $ 95.01 $ 101.02 7 Pet Food $ 182.84 $ 192.29 8 Laundry Supplies $ 31.52 $ 32.82 9 Personal Soap/Bath Needs $ 33.18 $ 34.51 10 Wine $ 105.70 $ 109.62 11 Cookies/Ice Cream Cones $ 47.87 $ 49.33 12 Household Cleaners $ 27.68 $ 28.48 13 Ice Cream $ 37.97 $ 39.00 14 Liquor $ 122.17 $ 125.33 15 Medications/Remedies $ 78.71 $ 80.69 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF COMEDY PODCASTS BABY FOOD $727,058,757 TEA $943,753,027 PET CARE $1,689,064,661 BEER $1,550,571,350 CARBONATED BEVERAGES $3,637,701,232 AVID FANS OF THE COMEDY GENRE ARE IN 30 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.9 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. GAMES AND HOBBIES GENRE PROFILE AVID* FANS OF GAMES AND HOBBY PODCASTS ARE HEAVY CONSUMERS OF TEA, BEER, COOKIES, CARBONATED BEVERAGES AND CANDY ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE GAMES & HOBBIES GENRE 1 Tea $ 34.53 $ 39.24 2 Beer $ 113.32 $ 128.52 3 Cookies/Ice Cream Cones $ 47.87 $ 52.76 4 Carbonated Beverages $ 122.04 $ 133.48 5 Candy $ 95.01 $ 103.73 6 Pet Care $ 87.15 $ 94.31 7 Frozen Pizzas $ 61.33 $ 66.02 8 Baby Food $ 115.20 $ 122.63 9 Personal Soap/Bath Needs $ 33.18 $ 35.20 10 Laundry Supplies $ 31.52 $ 33.39 11 Pet Food $ 182.84 $ 192.08 12 Wrapping Materials/Bags $ 33.94 $ 35.63 13 Household Cleaners $ 27.68 $ 29.01 14 Detergents $ 55.05 $ 57.58 15 Soup $ 40.18 $ 41.82 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF GAMES & HOBBIES PODCASTS TEA $813,146,441 BEER $1,241,843,998 COOKIES/ICE CREAM CONES $1,250,507,498 CARBONATED BEVERAGES $3,159,043,390 CANDY $2,558,512,404 AVID FANS OF THE GAMES & HOBBIES GENRE ARE IN 25 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.10 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF HEALTH & LIVING PODCASTS VITAMINS $2,332,029,058 LIQUOR $1,065,733,512 NUTS $972,927,750 ORAL HYGIENE $848,506,749 TEA $717,432,369 HEALTH AND LIVING GENRE PROFILE AVID* FANS OF HEALTH AND LIVING PODCASTS ARE HEAVY CONSUMERS OF VITAMINS, LIQUOR, NUTS, ORAL CARE AND TEA ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE HEALTH & LIVING GENRE 1 Vitamins $ 99.70 $ 113.65 2 Liquor $ 122.17 $ 138.28 3 Nuts $ 46.48 $ 50.03 4 Oral Hygiene $ 36.51 $ 39.29 5 Tea $ 34.53 $ 37.14 6 Personal Soap/Bath Needs $ 33.18 $ 35.24 7 Household Cleaners $ 27.68 $ 28.95 8 Baby Food $ 115.20 $ 119.40 9 Cookies/Ice Cream Cones $ 47.87 $ 49.36 10 Beer $ 113.32 $ 115.73 11 Hair Care $ 49.84 $ 50.88 12 Ice Cream $ 37.97 $ 38.72 13 Jams/Jellies/Spreads $ 31.41 $ 31.99 14 Laundry Supplies $ 31.52 $ 31.97 15 Spices/Seasoning/Extract $ 28.88 $ 29.20 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND AVID FANS OF THE HEALTH & LIVING GENRE ARE IN 23 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.11 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. KIDS AND FAMILY GENRE PROFILE AVID* FANS OF KIDS AND FAMILY PODCASTS ARE HEAVY CONSUMERS OF BABY FOOD, COOKIES, CANDY, WRAPPING PAPER AND HOUSEHOLD CLEANERS ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE KIDS & FAMILY GENRE 1 Baby Food $ 115.20 $ 145.02 2 Cookies/Ice Cream Cones $ 47.87 $ 53.92 3 Candy $ 95.01 $ 104.27 4 Wrapping Materials/Bags $ 33.94 $ 36.68 5 Household Cleaners $ 27.68 $ 29.72 6 Detergents $ 55.05 $ 59.02 7 Canned Juices/Drinks $ 65.79 $ 70.40 8 Bread & Baked Goods $ 125.54 $ 134.31 9 Personal Soap/Bath Needs $ 33.18 $ 35.40 10 Laundry Supplies $ 31.52 $ 33.53 11 Frozen Pizzas $ 61.33 $ 64.92 12 Snacks $ 175.85 $ 186.00 13 Paper Products $ 129.33 $ 136.65 14 Cereal $ 77.93 $ 82.13 15 Tea $ 34.53 $ 36.38 PERCENTAGE ABOVE NATIONAL AVERAGE FOR ANNUAL SPEND TOP 5 PRODUCT CATEGORIES ANNUAL SALES INFLUENCED BY AVID FANS OF KIDS & FAMILY PODCASTS BABY FOOD $810,326,048 COOKIES/ICE CREAM CONES $1,187,472,035 CANDY $2,365,877,921 WRAPPING MATERIALS/BAGS $783,120,606 HOUSEHOLD CLEANERS $598,773,512 AVID FANS OF THE KIDS & FAMILY GENRE ARE IN 23 MILLION HOUSEHOLDS *Avid fans are those who consider themselves extremely interested in a certain genre of podcasts (interest level 6 or 7 on a 7 point scale) Source: Nielsen Homescan Panel, Fanlinks 2017 survey, total U.S., 52 weeks ended 1/13/18.12 Copyright © 2018 The Nielsen Company (US), LLC. All Rights Reserved. MUSIC GENRE PROFILE AVID* FANS OF MUSIC PODCASTS ARE HEAVY CONSUMERS OF BEER, LIQUOR, PET CARE, TEA AND BABY FOOD ANNUAL SPEND PER HHLD RANK PRODUCT CATEGORY NATIONAL AVERAGE MUSIC GENRE 1 Beer $ 113.32 $ 134.04 2 Liquor $ 122.17 $ 140.65 3 Pet Care $ 8