What is Podcast Advertising?
Podcast advertising is one of the latest advertising methods. According to Choozle, the number of podcast listeners reached almost 22 million. Most of these listeners are loyal audiences who always keep updated with their favorite podcasts. Millennial listeners accounted for as much as nearly half of these numbers. Due to its rise, podcast advertising revenues reached US$479 million in 2020.
So, what is podcast advertising? Podcast advertising is an advertising method where the ads are made in audio format. It is similar to radio advertising and thus can be dubbed the millennial version of radio ads. Podcast streamers will usually put the audio ads in their podcast stream. The time place will vary from the beginning, middle, or even at the end of the stream. The length of the ad also depends on the charged price, but it usually ranges from 15-60 seconds.
The pre-roll podcast played at the beginning of the podcast with 15-30 seconds duration. Mid-roll podcast is a podcast advertisement played in the middle of an episode. Because of its time, the mid-roll podcast has the lowest chance of being skipped. However, mid-roll podcasts usually cost more than the other two. Post-roll podcasts typically lasted 15-30 seconds and played at the end of the episode. This ad type is most likely being skipped because the audience tends to stop listening once the stream ends.
There are also three types of podcast advertising based on the ads creator. An entirely produced podcast ad is one fully created by the brand itself. It gives the brand complete flexibility and creativity to craft its ads and content. However, the difference between audio tone and quality might cause this ad to sound unnatural to audiences.
Host-voiced podcasts are where podcast hosts create ads using their voices. The host will usually give a brief explanation or even a script for the ads. Then the host will present the ads with their voice and words. It is the most shared ad because it won’t disturb the audience and will flow naturally in podcast episodes.
A branded podcast is a podcast hosted by a specific brand. A misconception is that most people think branded podcasts are filled with a long sales pitch. Branded podcasts are usually created to build a company or brand reputation through value-rich content. They also want to inform the audience about related information in their field. Branded podcasts resemble soft-selling by utilizing helpful content.
Podcast advertising has the highest engagement rate compared to other social media advertisements. Almost half of podcast listeners’ buying decision is influenced by their favorite podcast channel. In other words, half of the podcast listeners tend to buy products advertised in their favorite podcasts. What is the reason for this high engagement?
- Audience loyalty. Podcasts differ from the radio. People usually find podcasts based on their needs or interests (news, finance, or even mystery stories). Hence, almost every podcast listener listened to more than halfway of podcast episodes. Podcast channels also have a significant amount of loyalty from their audience.
- High engagement. Edison Research found that almost 70% of podcast listeners only listen to their favorite podcast in their free time. It differs from watching television, where the audience’s focus is divided into many activities. Podcast audiences usually focus entirely on what they hear on podcasts. Hence, podcast ads can reach a high engagement rate if the podcast host can create a high-quality audio ad.
- Ad blocker is non-existent in the podcast world. Another internet advertising method is likely to waste because of ad blocker features. However, unlike other methods, podcasts usually have no ad blockers. Although listeners can theoretically skip the advertisement, there are no ad blockers.
How to Choose The Best Podcast for Your Business?
There are several rules you should follow when choosing podcast advertising. It is best to consider using these rules when pitching paid ads in podcast channels.
- Pay attention to the demographics. Podcast audiences differ from general audiences who watch television or listen to the radio. The priors are usually the general public who watch or listen to the shows without particular interest other than spending time. Meanwhile, a podcast audience is a specific group of people who are seeking new information through a podcast. Most of their active listeners are millennials, who are perfect customers to attract. Millennials are usually at the ideal age, income, and education to be advertisement targets.
- Understand the pricing methods. You should understand the basic system of podcast advertising rates to avoid overpricing. Some might think the podcast marketer charged them higher than usual, but it does not work like that. Most platforms use the same principles to ensure transparency between agency and client. Some even offer a built-in calculator so clients can measure and estimate their costs. Hence it is crucial to know the pricing methods to avoid unnecessary hassles.
- Choose a podcast based on its audience. It would be best to research before choosing the podcast to ensure your ads’ success. Every podcast has a different audience, so finding one that aligns most with your business is best. Thus the ad placement can sound more natural, topic-related, and trusted by listeners.
- Pick several podcasts to advertise your ad. There is a common misconception that you should invest money in expensive ads for a high return. Choosing several smaller podcast channels with high loyalty is better than spending much on a single costly podcast. Although major podcasts may have millions of listeners, most of them won’t be able to recollect your brand only by hearing it once. You’ll need to play the ads several times to have higher feedback from your ads campaign. Choosing a major podcast to run your ads multiple times will increase your cost significantly. It is better to choose smaller podcasts with the same niche because audiences tend to follow a few podcasts with the same topics based on their interests. Advertising your ad on several smaller podcast channels will increase your brand awareness to more audiences, thus increasing reach and conversions.
Then how to measure your podcast advertisement performance? There are various ways you can use to measure the impact of your campaign. But the standard method is measuring the impressions through the number of downloads. The more downloads of the episode with your ad, the performance will possibly be better. The other way is by using different promo codes shared in a few various podcast episodes. This way, you can measure which podcast has the highest return rate and have ads played on it again.
What is The Average Cost of Podcast Advertising?
It is crucial to know the average rates and how much the cost of podcast ads if you want to choose one. There are different ways to calculate the price of podcast advertisements. The most common method is a fixed rate or cost-per-mile (CPM) model. A fixed rate is better if you want to have a measurable cost amount. Suppose a podcast host charges you a fixed rate for the advertising. In that case, they usually place your ad on social media and Youtube channels. The price will vary according to the size of the audience.
On the other hand, using the cost-per-mile method effectively allocates the cost based on the ad reach. The CPM method charged the brand a fixed rate for every 1.000 listens of an episode. Because of the CPM system, it is harder to measure the final cost of the ad campaign.
There are a few factors that will impact a podcast ad’s price. These are ad length, podcast audience size, niche, and timing. Based on AdvertiserCast reports on nearly 3000 podcasts, the average CPM of a 30-second ad is about $18. For a 60-second ad, the charged CPM is around $25. The cost for a podcast ad varies according to the time placement. Podchaser reports that a 25-second pre-roll ad will cost you about $15 CPM. Meanwhile, the cost can double if you choose a mid-roll ad for your products. The cheapest among the three is a post-roll ad which costs about $10 CPM but is also the least effective. Podchaser estimated you would need around $1,000 to $3,000 on average to reach approximately 10.000 audiences for your ads.
Then, Which Agencies Should You Choose for Your Marketing Campaign?
So, have you decided to advertise your business on a podcast? In podcast advertising, agencies can help you connect with suitable podcast channels. Podcast hosts can also use these agencies to help them pair up with advertisers and companies.
Midroll
Midroll has numerous partnerships with various podcast channels, such as WTF with Marc Maron, The Art of Wrestling with Colt Cabana, and many more. Moreover, Midroll also has relationships with over 200 mega companies like HBO, Toyota, Squarespace, and T-Mobile. They will match the podcasters with great advertisers to ensure the partnership’s success.
AdvertiseCast
AdvertiseCast offers simplicity for both podcasters and advertisers. Podcasters should sign up for their podcast, describe it, and go live. For advertisers, the process pretty much resembles your usual online shopping process. Advertisers can shop through over 1000 podcasts on the website and choose one that fits most. When the advertisers choose the podcast, a simple ad buy order is made. The advertising process will start as soon as the order is completed. Advertisers aim to reduce typical friction between parties by establishing an effective platform. AdvertiseCast will share the revenues with a 70:30 ratio, where 70% is for the podcaster and 30% for them.
PodGrid
PodGrid can be your option if you want a smaller podcast with highly engaged audiences. PodGrid focuses on smaller podcast channels and recognizes their values based on committed listeners rather than audience quantity. PodGrid is best for advertisers who want lower ads cost and specific audience groups.
Archer Avenue
Archer Avenue is a senior player in the podcast advertising world. There has been countless match between podcasters and advertisers since their establishment in 2009. They also have great relationships with big companies such as MailChimp, DropBox, and New Relic. Archer Avenue stands amongst the crowd because of its experience and simplicity, which removes many hassles for podcasters. The entire process to join Archer Avenue only consists of 3 steps: Join Archer, create a great podcast, and get paid!
Authentic Shows
Unlike others that offer more than 1,000 podcasts on their list, Authentic Show only represents high-quality and popular podcasts. Podcasts in their inventory are such as Serial, Motley Fool, This American Life, and TWiT. Podcasts listed on their sites are carefully hand-picked by their team with much consideration. Most of these are known for their authentic voice, stories, high-quality content, and loyal audience. Their advertisers are usually prominent business players such as Ford, Dell, NETFLIX, and Visa. The cost will be much higher, but the return impact is also more significant.
PodcastOne
PodcastOne is a major player in podcast advertising and is often known as the nation’s largest podcast network. They offer a massive choice with more than 200 podcast channels you can choose from. They also scored considerable monthly impressions, as much as 400+ million.
Megaphone
Megaphone is a service run by Panoply Media, one of the infamous podcast networks. In Megaphone, marketers can buy targeted podcast ads based on Nielsen’s data management platform and audience segmentation. Megaphone’s team consists of many digital marketing veterans who have experience in recording and distributing podcasts for over a decade. With their expertise, Megaphone can build tools to facilitate the needs of experienced producers and blue-chip advertisers. The brands partnered with Megaphone are given access to Nielsen’s data management platform and Panoply’s Megaphone-targeted marketplace. However, Megaphone is only available to networks and podcasts with average downloads of 20,000 or more each episode.
Head Gum
Compared to others, HeadGum is considered a new player in this field. Jake Hurwitz and Amir Blumenfeld founded it after they departed from CollegeHumor. The offered list is pretty short, which is 43 podcasts as of February 2018. However, HeadGum podcast networks have an impressive amount of engagement. The HeadGum network has an average of 100 million plays per month, with only 40 podcasts listed in April 2017. Based in Los Angeles and Brooklyn, HeadGum aims to produce, curate, and promote the best podcast content from the web.
Earwolf Podcast Network
For those looking for the funniest and most thought-provoking podcast, Earwolf is your best choice. Their growing list of networks consists of top-ranking comedy and entertainment shows such as “Comedy Bang! Bang!” and “How Did This Get Made?”. Earwolf has a strong relationship with its network, and they stand out in the ever-growing podcast industry.
Podcast advertising is lower in terms of cost than other influencer marketing methods. However, it does not mean it isn’t as effective as others. Podcast advertising is one of the advertising methods with the highest return rate. A podcast ad’s success heavily depends on the choice of podcast channel. Hence, it is best to do some research before collaborating with any podcast channel for your marketing campaign.
