Picture this: You're sitting at home, checking the time, waiting for your favorite radio show to air. You try to catch it every day because the DJ is hilarious. But something comes up—you need to pick your kid up from school last minute, or you get distracted by a work email—and before you know it, the show's over. Better luck tomorrow.

With podcasts, you never have to miss or wait for your favorite stories. Instead, you can search Spotify for a huge range of podcast options and play them whenever you want.

Even though the number of people who tune into radio still outpaces podcast listeners, that may soon change. Today, the average time spent per day with podcasts by adult listeners is 50 seconds—and that's projected to increase by 4% to 52 seconds by 2026.¹ Radio, on the other hand, is projected to go in the opposite direction: averaging 1:20 minutes per day in 2024, versus 1:18 minutes per day in 2026.²

Our 2024 Podcast Trends report also reveals that 45% of millennials and Gen Zs say that when they hear an ad during a podcast, they trust the brand/product being promoted because of the relationship they have with the hosts.³

With this in mind, many advertisers are wondering: What's the difference between podcast advertising and radio ads? What're the advantages of each? And what's in store for the future of podcasts vs. radio?

Read on to hear our take.

The difference between podcasts and radio

Traditional radio shows are broadcast live to audiences over radio waves. They often require listeners to tune into a station at a set time so they don't miss anything.

Radio stations typically air different segments targeting specific audiences, from early-morning commuters to night owls, throughout the day. Radio content also tends to focus more on trending topics and newsworthy events than on evergreen themes.

A podcast is a pre-recorded show that listeners stream at their convenience or download to listen to later. Podcast hosts choose a topic to focus on, record the audio, then edit before publishing.

Because listeners access podcasts whenever and wherever they please, podcast ads tend to be more flexible than those that air on the radio. They can also provide advertisers with an enhanced ability to reach niche target audiences.

Podcasts and radio are interactive in different ways

Radio call-ins and contests—"The 50th caller wins a new car!"—are well-known features of terrestrial radio. But podcasts take the ability to engage with audiences a step further. Spotify, for example, offers interactivity features like polls, comment sections, video podcasts, and more.

For instance, audiences can weigh in on episodes of The Rewatchables with Spotify's Poll and Q&A features. Alex Cooper of Call Her Daddy has a "questions of the week" segment, where she takes anonymous questions and stories from her listeners. Interactions like this help listeners feel like they've got a personal, one-on-one relationship with the host. In fact, according to our 2024 Podcast Trends report, 63% of surveyed Spotify users say they trust their favorite podcast host more than their favorite social media influencer.⁴

For advertisers, Spotify offers even more ways to interact with content—like CTA cards (clickable companion units that brands can add to their digital audio ads) and Canvas for Advertisers (immersive, looping visuals that play alongside audio ads).

Estimated audiences vs. logged-in listeners

Let's talk about broadcast vs. podcast advertising. In terrestrial radio, the tuned-in audience is a bit of a mystery. For analytics, radio stations provide advertisers with a general estimate of their audience based on blanket demographics and location information. Radio measurement providers collect this data from surveys—but it's hard to know how accurate the responses are.

This is why radio ads are sometimes generic and one-dimensional: It's challenging to target a particular audience when you have no idea who you're reaching.

But with podcasts on Spotify, users log into their accounts beforehand, giving advertisers in-depth insights into exactly who hears or sees their content. And more nuanced data enhances the ability to create more targeted ads.

Approximate targeting vs. controlled targeting

As we've covered, radio networks are only able to provide a guesstimate of their audience demographics. You can't be sure your ad will reach the right people—in fact, your ads might very well air when your target audience has their radios off.

But with podcasts, advertisers control targeting with precision. Tapping into the Spotify Audience Network, brands can purchase podcasts ads based on their unique target audiences. And since users play podcasts intentionally, your ads are less likely to get lost in the background.

Plus, advertisers can target way beyond demographics and location. With Spotify Ads Manager, you can get data on listener interests, devices, formats, listening moments, and more.

Making multi-format connections

On Spotify, the number of podcast shows streamed per person in the US has increased +15% year over year.⁵

Podcast fans tune in throughout their entire day—while getting ready, working out, on the move, with friends and family, or just relaxing on their own—and on many different devices. What's more, they're not just listening to podcasts; they're watching them, too. In fact, we've seen a +39% increase in average daily streams of video podcasts in recent weeks.⁶

Smarter targeting in podcast advertising drives more valuable audience connections

Radio advertising is a one-to-many outlet. On the other hand, podcast ads give brands the opportunity to deliver a tailored message that's relevant to both the user and the context of the moment, driving valuable one-on-one connections.

While radio ads can seem random and not particularly relevant, interest-targeted podcast ads that are native to the podcast experience have a much more natural feel—and possibly a higher chance of converting.

Take advantage of the audience insights you get with Spotify to create on-target podcast ads that have the potential to reach the right audience at the right time. Spotify Ads Manager's Automatic Placement feature helps ensure your ads reach both music and podcast listeners. Learn more on our dedicated podcast advertising page.