Podcasts are becoming more and more popular as a way to learn and have fun, and with this growth comes a new advertising frontier. Advertisements are usually read by the podcast’s host or are pre-recorded. With the rise of ad-free streaming services, podcast advertising gives businesses a new and interesting way to reach potential customers.
There are a few good reasons to put ads on podcasts. First, the medium lets advertising reach a very specific group of people. Second, podcast advertising has been shown to get a lot of attention and make people more aware of a brand. Lastly, it has a high return on investment (ROI) because it is cheap and can reach an audience that is very interested. In this article, we’ll look at the different kinds of podcast ads and talk about the pros and cons of each.
How Do Podcast Ads Work? A Comprehensive Guide
Different kinds of podcast ads
There are different ways to advertise on podcasts, but they all have the same goal: to get a product or service in front of a certain audience. Some of the most common types of podcast ads are as follows:
A. Ads read by hosts
The most traditional way to advertise on a podcast is to have the host read the ad. In this kind of ad, the podcast host reads a script about the product or service. Most of the time, ads that are read by the host are part of the show and sound more like a recommendation than an ad.
The fact that the host reads the ad in his or her own voice makes it more real and makes it easier for the host to connect with the audience on a personal level. Ads that are read by hosts are also very effective because people tend to trust what their favorite hosts say.
B. Ads that have already been recorded
Most of the time, the advertiser makes pre-recorded ads, and the podcast host puts them in. Pre-recorded ads do not use the host’s voice like host-read ads do. Instead, they use the advertiser’s spokesperson or a professional voiceover artist.
Pre-recorded ads have a lot of benefits, like being able to deliver the same message across different podcasts and being able to grow as needed. Advertisements that have already been recorded can be made for specific audiences and are easier to track and measure than ads that are read by a host.
C. Ads that are scheduled
Automated technology is used to add programmatic ads to podcasts. Through a programmatic platform, advertisers can buy ad space on a podcast and have their ads shown to the people who listen to the show. Programmatic ads can be made for specific groups of people based on demographic information or how they listen.
Programmatic ads have benefits like being able to reach specific groups of people and being easy to use. They are also easy to track, so advertisers can see how well their campaigns are doing and change their targeting and messages accordingly.
Overall, each type of podcast ad has its pros and cons, and the best choice for a campaign will depend on the advertiser’s goals, budget, and target audience.
Advertisers and Advertising on Podcasts
A. Summary of podcast sponsors
Podcast advertisers are businesses that promote their products or services through podcasts. They work in many different fields, such as finance, healthcare, technology, consumer goods, and more. Big brands like Amazon, Coca-Cola, and Goldman Sachs are some of the most popular advertisers on podcasts.
B. The rise of advertising on podcasts
Over the past few years, podcast advertising has grown a lot. According to a report from the Interactive Advertising Bureau, podcast advertising revenue in the United States grew by 48% in 2019, reaching a total of $708.1 million. This growth is expected to keep going, and the same report says that podcast advertising will bring in more than $1 billion by 2021.
C. Why podcast advertising is good for advertisers
Advertisers can get a lot out of podcast advertising. These things are:
Targeted reach: Podcasts let advertisers reach a very specific audience because they can choose to advertise on shows that are relevant to their target demographic.
High engagement: People who listen to podcasts are very interested in the content they are listening to, which can make them more interested in ads as well.
Brand awareness: Advertising on popular podcasts can help spread the word about a brand and make it known as a leader in its field.
High return on investment (ROI): Podcast advertising has been shown to have a high ROI because it is often less expensive than other forms of advertising and can lead to higher conversion rates.
Overall, podcast advertising is becoming a more popular way for advertisers to reach their target audience and reach their marketing goals.
Rates for podcast advertising
Rates for podcast advertising can vary a lot depending on many things. In this section, we’ll talk about what affects podcast advertising rates, how rates are set, and what the average podcast advertising rate is.
A. Things that affect how much podcast advertising costs
Popularity of podcasts: The more popular a podcast is, the more likely it is that the advertising rates will be higher. Advertisers are more likely to be interested in a podcast with a large, engaged audience.
Demographics: The type of people who listen to a podcast can also affect how much it costs to advertise. Advertisement rates may be higher for podcasts with highly desirable audiences, like those with a lot of money or a lot of education.
Length and frequency: How long a podcast is and how often it comes out can also affect how much ads cost. When it comes to advertising, podcasts that are longer and come out more often may be worth more money.
Ad placement: Where an ad is put in a podcast can also have an effect on how much it costs to advertise. Advertisements that play at the beginning of a podcast may cost more than those that play in the middle or at the end.
B. How advertising rates for podcasts are set
Cost per thousand (CPM) is the most common way that podcast advertising rates are set. This means that advertisers have to pay a certain amount for each thousand times their ad is listened to or downloaded.
The CPM rate is often based on the things listed above, like the size and make-up of the audience, the length and frequency of the podcast, and where the ad is placed within the podcast.
C. Average rates for advertising on podcasts
Rates for advertising on podcasts can vary a lot. Some podcasts charge as little as $20 per episode, while others charge as much as $3,000 per episode. The Interactive Advertising Bureau did a survey that showed the average CPM rate for podcast advertising in 2021 was $29.04.
But it’s important to note that this average rate can change a lot depending on the above factors and other things like the type of ad (host-read vs. pre-recorded) and the industry being advertised.
Overall, podcast advertising rates can give advertisers a good return on their money, especially if they want to reach a specific, engaged audience. By knowing what factors affect podcast advertising rates, advertisers can decide where to spend their money on advertising in a smart way.
Keeping track of how well podcast ads work
Podcasts are becoming a popular way for businesses to reach their target audience through advertising. But it can be hard to figure out how effective podcast ads are. In this section, we’ll talk about the different metrics used to measure how well podcast ads work, as well as the problems that come with measuring how well they work.
A. A Quick Look at Podcast Ad Metrics
Metrics are measurements that are used to track and figure out how well podcast ads are doing. Metrics can help businesses figure out if their podcast advertising campaigns are working or not. Some of the most common ways to measure how well podcast ads work are as follows:
Downloads are how many times a podcast episode has been saved to a computer. This metric is used to measure how far the podcast goes and how many people might be interested in the ads.
Listens are the number of times someone has listened to an episode. This metric is used to see how much the podcast and the ads are being listened to and watched.
Completion rate: The completion rate is the number of people who listened to the whole episode. This metric is used to measure how well the ad works and how much people are interested in the content.
Click-through rate (CTR) is the number of clicks on an ad divided by the number of times it is shown. This metric is used to figure out how well the ad works at getting people to visit a website or landing page.
Conversion rate: The conversion rate is the percentage of people who hear an ad and then do something like buy something or sign up for a service.
B. Problems with figuring out how well podcast ads work
It can be hard to figure out how well podcast ads work for a number of reasons. One of the biggest problems is that it’s hard to keep track of podcast listeners because many of them listen on mobile devices and on more than one platform. Also, podcast listeners are often more interested and may be less likely to skip ads. This makes it hard to know how effective an ad really is.
C. Common metrics used to figure out how well podcast ads work
Even with these problems, there are a number of common ways to measure how well podcast ads work. These are things like downloads, listens, completion rate, click-through rate, and conversion rate. By keeping track of these metrics and analyzing the data, businesses can learn a lot about how well their podcast advertising campaigns are working and make changes to improve their return on investment (ROI).
Conclusion
In conclusion, podcast advertising has a lot of benefits, such as targeted advertising, a higher return on investment, more engagement, and brand awareness. Advertisers have seen that podcast advertising has a lot of potential, and it has grown a lot in the past few years.
There are different kinds of podcast ads, such as ads that are read by the host, ads that are pre-recorded, programmatic ads, and ads that are inserted dynamically. Each one has its own benefits and works in a different way.
Several things, like the size of the audience, the demographics of the audience, and the type of podcast, are taken into account when advertising rates are set. Measuring how well podcast ads work is also hard, but there are some common ways to measure ad performance.
As podcasts continue to become more popular and more people use them for entertainment, learning, and getting information, the future looks good for podcast advertising. Advertisers who spend money on podcast advertising are likely to get a good return on their money, and podcasters who monetize their content with ads could make a lot of money.
Overall, both advertisers and podcasters benefit from podcast advertising. Both advertisers and podcasters can get the most out of podcast advertising if they know the different kinds of ads, what factors affect rates, and how to measure how well ads work.
