Podcast advertising – a modern solution for your business

Although they have been around for almost 20 years, podcasts have only flourished in the last six. With the development of smartphone apps, podcasts have become both popular and profitable. According to eMarketer, there will be 125 million monthly listeners in the U.S. in 2022, up 6.1% year over year (YoY). Over 39% of Americans between the ages of 18 and 34 listen to podcasts regularly. Less than one-fifth listen to podcasts each month, compared to half of the consumers between the ages of 35 and 44. There will be more than 144 million monthly listeners of podcasts in the U.S. by the end of 2025. Additionally, people are listening to podcasts for longer periods. Adults are likely to spend more than 23 minutes per day listening to podcasts in 2022, an increase of 16.1% YoY. The yearly investment is expected to increase even if the epidemic slowed the rise of podcast advertising. In the U.S., podcast advertising spending is predicted to rise by 30.2% YoY in 2022. More than $2 billion will be spent on podcast advertising next year. By 2028, the sector is anticipated to generate $94.88 billion, according to the same source. It's important to note that the majority of new podcast listeners are radio audiences. It suggests that advertising budgets are transferring from broadcast radio to podcasts.

What is podcast advertising and why it's good for your business?

With 88% of Americans possessing smartphones, it is now simpler than ever to listen to podcasts while on the move. This includes riding a bike, walking, jogging, exercising, driving, and other situations where there is "empty time". Podcast listening became even more practical thanks to infotainment systems in automobiles.

Commercials for podcasts are exactly what they sound like. They implement the same marketing strategy and employ the same techniques as in other forms of media. The distinction is in the relationship between the presenter and the listener. It improves "H2H" or human-to-human interaction at a very low cost. Due to the fact that many individuals listen to podcasts while wearing headphones, the experience is quite personal. According to eMarketer, 80% of podcast listeners finish every episode they start. It makes them highly engaged and devoted consumers. Two-thirds of them don't avoid the commercials, and 78% don't mind hearing them on podcasts. Furthermore, 62% of listeners would consider purchasing a product mentioned on a podcast, and 69% feel that podcast advertising boosts their awareness of brands. Utilizing celebrity endorsement establishes credibility and trust. According to Edison Research, 67% of podcast listeners appreciate hearing the advertisements, compared to 6% of radio and TV listeners. Further, IAB discovered in its study that podcast listeners are more receptive to advertisements read by presenters than to pre-produced ads. The hosts of their favorite podcasts enjoy the trust of their audience. According to the same study, 67% of listeners could name an actual feature or offer that was mentioned in a podcast.

Podcast advertisements also raise awareness. It's because audio and visual media material is easier to share and tweet than blog content. Podcast leads are similar to those generated through affiliate marketing or word-of-mouth promotion. Audio programs increase SEO and draw in new listeners. When a new type of material is added, it attracts new customers who would not have discovered the company otherwise. By including a podcast in a blog post, you may persuade other bloggers to embed your show and link back to you. This will promote your brand and attract new customers.

How to advertise on podcasts

First, define your target market. Create a thorough grasp of the hobbies, habits, and preferences of your target consumers. Determine the kinds of podcasts they consume. Surveying is one way to accomplish this. Local companies can target listeners in their service area. Search for podcasts that are relevant to your company or sector. The listener may find it more acceptable when an advertisement goes in pair with the theme of a podcast episode or series. Using your competition as inspiration is a wonderful strategy. Check to see whether the programs they advertised may benefit your marketing plan as well.

For the hosts to explain in-depth about the product or service they are promoting and their experiences with it, it has become standard for marketers to provide them with a sample of the product. It's also typical to offer a code that is only available for that particular podcast. Paid interviews, product placement, and direct response advertisements are some other choices. Additionally, you may pre-produce an advertisement to put at the start, middle, or conclusion of the podcast. A host may be approached directly or through a service that links podcasters with sponsors. The first option is suitable for a smaller podcast that isn't part of a network. Additionally, it's critical to advertise on podcasts that offer clear audience figures. Check the number of followers of hosts on social media to determine if he's worth your effort.

How effective is podcast advertising?

Advertising on podcasts is a great way for companies to expand their influence and reach an audience in their target market. Podcasts are characterized by a longer shelf life compared to other media. Content may be saved and listened to months or even years later on and remain valuable. Any listeners who replay those programs will hear the advertisements that appeared on a podcast. Podcasts increase curiosity and make the listener open an app and do a real-time search for a mentioned item.

Leads that discover about a business through a podcast advertisement are seven times more likely to convert than other internet users. The cost of podcast advertising is also rather obvious and simple to figure out. To fine-tune the approach and maximize the ROI, it is possible to track the effectiveness of podcast advertisements. It can be done by vanity URLs, promotional codes, progressive testing, etc. Such methods develop trust and boost conversion. According to WARC, podcast advertising campaigns generate an average $2.42 return on investment. The same source states that this marketing sector is estimated to be worth $1,6 billion this year. Because it's less crowded than, say, the $130 billion digital ad industry, those who do promote on podcasts can stand out.

How much does it cost to advertise on a podcast?

In general, creating podcast advertisements is simple and inexpensive. Pricing tiers are based on the number of listeners to the podcast as well as the dimension and location of the advertisement. Companies pay at a CPM rate, or cost per 1000 listeners, for advertising. A 30-second pre-roll ad, as an illustration, costs $29 for every 1,000 listeners the podcast draws. Popular podcasters charge $25–$40 per 1000 listeners, according to a report from The Atlantic. For this reason, buying numerous advertisements for tiny shows is more reasonable than buying one for a major podcast. Think about placing advertisements across many programs in the same network.

A basic podcast advertising terminology

• CPM Rate - cost per mille. It's what pay for every 1,000 listeners.
• Host-Read Ad: a pre-recorded ad that is voiced by the host of the podcast.
• Dynamic Insertion: ads inserted into pre-existing podcast audio. It's used to deploy programmatic ads.
• Due to the placement of advertising: Pre-Roll Ad at the beginning of an episode; Mid-Roll Ad; Post-Roll Ad.
• CTA: Call to action; It's whatever makes listeners do a certain thing - click on a link to get a discount, learn more etc.
• Downloads: how many times a podcast episode has been downloaded.
• Live-Read Ad: non-scripted and non-edited ad read live by a host.