It’s no secret that podcasts are exponentially growing in popularity, but is podcast advertising effective?

 

Gone are the days of tuning into AM radio for your talk radio needs. Today, thousands of podcasts can be streamed from any device, at any location, at any time. We listen to them in the car, at the gym, at home, and even at work.

As consumers continue to integrate podcasts into their daily lives, marketers continue to discover ways to use the audio streaming industry to help grow their brand.

There is a podcast for nearly any imaginable topic out there. This presents an effective way for marketers to target specific audiences already engaged in the content and hoping to grasp something new.

Why Advertise On Podcasts?

We live in the era of screens.

According to eMarketer, the average US adult spends 3 hours and 43 minutes on their mobile devices. We devote a decent portion of our day in front of screens; thus, most advertisements we see are on screens. We see so much on our screens that it often becomes easy to tune out information that we don’t care to engage with.

Graph courtesy of eMarketer.com

This is where podcast marketing can truly capitalize. Podcasts serve as a unique medium that allows us to consume content in a purely audio format without being distracted by the screen.

Think of podcasts as radio’s younger brother with much more growth potential. According to Edison Research, 67% of listeners enjoy hearing podcast ads, compared to only 6% for radio and TV audiences!

You still may be thinking, why podcast marketing? When someone listens to a podcast, they are engaged, focused, and hoping to be entertained or discover something new. 

Using headphones turns your attention to what you are consuming and tunes out the rest of the world. Being able to complete tasks and go about your day while listening to podcasts deters you from being distracted by what else is on your screen.

The Targeted Nature of Podcasts

Most popular podcasts have relatively specific niche audiences. The consumer listening to “The Joe Rogan Experience” is likely not the same consumer listening to Barstool Sports’ “Call Her Daddy.” This makes it easy for marketers to narrow in on a targeted yet still generally broad audience for their advertisements.

Marketers can tailor their ads even more by using dynamically placed ads based on factors such as demographics and location, which provide an even more personalized ad experience.

Two people listening to the same downloaded episode may hear different dynamically inserted advertisements based on their demographics, location, device, and more.

There is a podcast for nearly every topic out there, meaning an abundance of diverse opportunities. You’ll be certain to discover one that aligns with your brand’s desired audience!

Consumers’ Relationship With The Host

Most people listen to podcasts because they are fans of the host. They respect what the host has to say, and they enjoy hearing them talk. Podcasts present a “fan following” nature similar to that of YouTube.

This is why host-read ads can be highly beneficial. The ad can flow naturally in and out of the show, making it hard to skip, and it can provide a pleasant break from the long-form content. Plus, attempting to skip an ad means potentially skipping over part of the show. 

Also, it is easy for the consumer to be interested in a product that their favorite host is promoting. The Podcast Consumer Report found that 54% of listeners consider purchasing the products or services they heard about during a podcast.

Host-read ads provide a nice touch of influencer marketing considering the usual fanbase of the host. 

Due to the fan-following nature of podcasts, listeners don’t mind advertisements nearly as much as other media channels. They understand that the ads support both the show and the host. In fact, according to WARC, 78% of podcast listeners don’t mind podcast ads as a means of supporting free content.

The bottom line is this: podcasts capture the attention of the consumer more than any other media channel, and marketers should utilize this to their advantage.

Paid Advertising for Podcasts By The Numbers

• 80% of listeners can recall a brand advertised in a podcast (Midroll Recall Survey 2016).
• Podcast ad spend is currently worth $855 million globally and is set to rise to $1.6 billion by 2022 (WARC’s 2019 Global Ad Trends Report).

Graph courtesy of eMarketer.com

Types Of Podcast Ads

Many advertisers have concerns over how much control they’ll have or how their business will be described during a podcast. 

There are two advertisement recording options available:

• “Baked-In”: Your advertisement will be read by the host
• Pre-recorded: it will be a dynamically inserted piece of audio.

They each have their strengths and weaknesses.

Baked-In (Host Read)

A host-read ad that is “baked in” to the show is a non-scripted, naturally flowing mention of the product or service.

This form allows the host to describe the business in their own way, providing a personal touch to the advertisement. Since these ads are recorded during the initial production of the episode, the ads become a permanent part of the show.

One drawback of this form is that the host may not describe the product or service the way you would anticipate. However, the characteristics of these ads are what people tend to appreciate about podcast ads.

Pre-Produced (Sponsor-Produced Or Host-Read)

A pre-produced ad may be either sponsor-produced or host-read. The ad is inserted during the post-production process of the podcast. 

An advertisement produced by the sponsor will sound more like your typical radio commercial (think, “and now a word from our sponsor…”). It may include music or sound effects and says exactly what you want it to say. 

Frequently, sponsor-produced ads are dynamically inserted based on variables of the particular listener. Sponsor-produced ads provide the most efficient form of targeting and tracking through podcast advertising. 

The pre-produced host-read ad comes from a script but still includes the host’s voice and personality. This type of ad combines the best of both worlds. Relatability to the host paired with an efficient ad ensures that you are targeting your desired audience authentically.

Types Of Podcast Ad Positions

• Pre-Roll: 15-30 seconds long and read at the beginning of the episode.
• Mid-Roll: 1-2 minutes long, read in the middle of the episode.
• Post-Roll: 15-30 seconds long, read at the end of the episode.

Typical Cost Structure

• Pre/Post-Roll: $18 per CPM (1,000 listens)
• Mid-Roll: $25 per CPM (1,000 listens)

How To Advertise On Podcasts

When deciding on which ad type or position to go with, keep in mind that there is no “one size fits all” approach. Your brand’s podcast advertising strategy depends on your brand’s target audience, voice, and vision. 

Variables to consider when it comes to podcast advertising include: 

• Which show to advertise on 
• Which type of ad to run 
• Which position to place the ad 

After these variables are determined, either reach out to the podcast host or find a service that will connect you with the perfect show.

Podcast advertising is the next big thing. Give us a call today if you’d like us to connect you with a podcast that will help expand your brand!