Casting Call: Understanding Podcast Advertising Opportunities

As podcasts grow in popularity, advertising opportunities are shifting in response to target new audiences of listeners. Broadcast radio ads may be fading in popularity, but audio advertising on podcasts is picking up steam, so much so that businesses are expected to spend over $500 million on podcast ads by the year 2020.

Why Podcasts Are Gaining Popularity

According to 2019 Podcast Stats & Facts, there are over 750,000 podcasts available to U.S. audiences, with 62 million Americans listening to podcasts on a weekly basis.

Podcasts fall easily into our busy lifestyles of convenience and customization. Streaming services and social media have shown consumers a new way of media consumption, to which we’ve quickly grown accustomed. Podcasts fit our desire for highly engaging content that is entertaining, informative, and easily accessible.

Podcasts create communities of like-minded individuals, and that sense of community and connection with the show host is attractive for many people. Some podcast hosts even encourage listener-generated content.

Additionally, podcasts are appealing for their narrative characteristics. After all, humans are naturally drawn towards stories. 

Why Podcast Advertising Is Effective

Podcasts provide a wide range of exposure for brands, as the audiences are large and engaged. Podcast listeners also understand the connection between advertising and accessibility. Ads fund their beloved podcast shows, so podcast ads are viewed differently than TV ads. In fact, 78 percent of podcast consumers actually approve of podcast advertising.

Podcast advertising is effective for a variety of reasons:

• Trust: Listeners value the recommendations of the shows’ hosts, and trust the products/services featured.

• Highly targeted: Audiences are already interested in topics related to your product/service.

• Brand awareness: Audiences will be familiar with your brand if the ad is featured on multiple episodes. Thus, listeners may spend several hours a week with your brand.

Ways Advertisers Can Leverage Podcast Advertising

Marketers should treat podcast ads as native ads. Think of ways to deliver ads that are natural and feel genuine to the listener. Use podcast ads to achieve your marketing goals by setting out a plan and an effective way to measure success. 

What are you advertising? Who is your audience? What is your budget? What is your timeline? Once you have your goals for the campaign, choose what type of advertising would best suit your brand.

Direct response campaigns, brand awareness campaigns, and branded content are three ways advertisers can leverage podcast advertising, depending on your goals. Metrics such as promo codes, custom URLs, and user engagement are effective ways to measure the success of podcast ads.

Tips for Creating an Effective Ad Campaign

Ad campaigns involving podcast ads require upfront planning. They may also require more money, as podcast advertising is priced on a CPM (cost per mile) model. Ads are sold by the thousands and based on the number of certified downloads an episode receives.

To create an effective podcast ad:

• Identify shows that fit the brand’s niche.

• Schedule ads for mid-roll slots instead of pre-roll or post-roll (mid-roll slots last the longest, between 60-90 seconds, versus 15-30 seconds for pre- or post-roll).

• Allow the podcast host to deliver the ad.

• Create engaging and informative content (don’t rely on the host’s credibility to sell your product/service).