The ways in which we consume content have changed dramatically in the last few years. However, not everything has changed. For decades, we’ve been cruising down the highway, listening to radio programs, interesting conversations, music, news — and inevitably, ads.
This is where podcasts come in: they’ve taken the best of nostalgia and have given it a modern twist. With the rapid expansion of the podcast market, brands are looking to understand podcast advertising rates better to expand their reach within this new medium, and we’re here to help you learn all about it.
Table of Contents
Podcast Ad Rates: Why All the Hype?
Why would brands want to invest in podcast advertising? Experts anticipate that the revenue from podcasts in the US alone will reach $4 billion by 2025. Given that in 2021, it stood at “only” $1.4 billion, the market is growing rapidly and could potentially reach $3,2 billion by the end of 2024.
Data also suggests that 68% of people who listen to podcasts are more likely to contemplate a service or product if they’ve learned about them from a podcast, which is higher than YouTube (62%), social media channels (61%), TV ads (54%), or radio (49%).
Podcast production companies understand the new possibilities brands can leverage to advertise themselves on third-party or their own podcasts. As such, we’ve asked them to help compile this guide on podcast sponsorships and podcast advertising costs.
Podcast Advertising Rates: Understanding Podcast Sponsorships
Sponsoring a podcast means paying for a mention during a show, in hopes of leaving a mark on the audiences and luring in new leads and potential customers. The partnership focuses on different types of ads to make that happen.
For instance, podcast hosts may read an ad or use a script with only a few bullet points, giving the host and the potential guests freedom to discuss the product.
One of the main differences between podcast advertising and other traditional ads is that podcast ads can be very targeted, with the audience already well-segmented. This creates a greater level of connection and trust between the listeners and the podcast host, making it a powerful marketing platform.
Podcast Ad Types
Usually, podcasts will offer brands three different ad slots. There are pre-roll, mid-roll, and post-roll ads, placed in the beginning, middle, and end of each episode, respectively.
Mid-roll ads are the longest (up to 90 seconds), while the other two options are rarely longer than half a minute. Post-roll ads tend to be the least attractive, due to the risk of losing the attention of an already tuned-out listener.
Podcast ads can also be baked-in or dynamic. The latter is usually separate from the original podcast recording, while baked-in ads are an integral part of the episode and can’t be removed or changed. From the producer’s point of view, dynamic ads are superior, as they are easier to reuse and generate ongoing ad revenue.
From a brand’s standpoint, however, baked-in variants are better as they can’t be swapped out for other branded ads. They are also more authentic, providing better continuity for the flow of the podcast episode.
Native Ads
These are created by a brand for the podcast, discussing features and sharing promotional information. These ads typically won’t last longer than half a minute, usually airing as pre- or mid-roll ads.
Product Placement Ads
These ads include a mention of the brand and its product during the episode. Typically, it’s done in a straightforward and unceremonious manner.
Direct Response Ads
These are a mixture of product placement and native ads, with the podcast host reading a script that was provided by the brand.
Sponsored Content
In this scenario, a brand won’t pay for an ad slot, but for creating unique content about a topic relevant to their offerings. In these cases, hosts won’t necessarily mention the brand or product directly but will mention the brand that sponsored the episode. While not ideal for boosting direct sales, these sponsorships can help with brand recognition.
Paid Interviews
Undoubtedly, this option offers brands the most time, as they pay for an interview with an expert who is linked to the brand to discuss topics relevant to its offerings.
This is a win-win situation for both the brand and the podcast host. The latter doesn’t have to create an episode from scratch, as interviews are content collaboration efforts, while the brand is presented with an excellent opportunity to generate trust and brand awareness.
How Much Does It Cost To Advertise on a Podcast?
Podcast advertising usually relies on different pricing structures, with either fixed rates or calculations using the cost-per-mile (CPM) model. For a fixed fee, podcast production teams will also include the ads on other platforms such as YouTube or social media, with the price of the package deal corresponding to the size of the audience. CPM models typically include charging a fixed rate per 1,000 listeners for an episode.
Other factors that may impact the ad price include:
- The ad’s length
- The podcast’s audience size
- Niche
- Timing (prime-time ads will cost more)
- Ad numbers and audience size
Ultimately, podcasts with a larger listener base will usually charge more for an ad. According to podcast-dedicated websites, the average cost per 1000 listeners for ads will run between $15 and $30 for pre-recorded ads under 60 seconds. Other sponsorship ad formats will cost brands between $25 and $40/CPM.
According to other dedicated sources, a pre-roll ad that will reach 100,000 listeners will cost around $1,500 while a mid-roll ad up to 60 seconds will cost around $3,000 if it generates 100,000 listens.
All in all, it will be up to you to negotiate rates and costs with the podcast. Average rates can serve as guidelines, as nothing is set in stone.
Best Practices for Podcast Advertising
Out of all digital marketing solutions and strategies, podcast advertising may seem the most straightforward, as it’s very similar to video ads. However, subtle differences do exist. First, dynamic ads can be used in other types of digital marketing campaigns and recorded interviews can be embedded into your site and uploaded to your social pages or YouTube channel.
Let’s delve into some useful tips and best practices to get started with podcast advertising.
- How to get podcast sponsorships
- How to write ads
- Ad campaign length
- Ad numbers and audience size
- Focus on niche-related shows
- Research competitors and podcasters
- Send product samples
- Measure results
How To Get Podcast Sponsorships
To get started with advertising, you can always reach out to shows directly or work with B2B platforms to connect with showmakers. Either way, your best bet is to opt for a podcast relevant to your brand, services, or products, with an overlapping target audience. This will ensure you target the right people with your ads.
How To Write Ads
Similarly to web page content, podcasts need ad scripts. Regardless of the type of ad you run, you will be likely asked for at least a few points that should be mentioned in your ad to address relevancy and highlight benefits.
The ad copy or script will need to grab attention with a hook and then go on exploring the pain points it addresses or solves. Direct response ads or paid interviews can be great for sharing a personal story regarding the service or the product, as it can directly build trust and serve as a form of social proof, especially if the podcast host shares their personal story.
The ad script or copy will also need a call to action. In the case of podcast ads, they are usually promo codes that are easier to recall and help measure ROI.
Ad Campaign Length
The growth marketing experts from Right Side Up recommend running podcast ads for around seven to ten weeks. According to the agency, sometimes, ads will need around two weeks to drive conversions, and, in some cases, the bulk will start coming in within five weeks.
Ad Numbers and Audience Size
It makes more sense to create partnerships with several podcast shows with smaller audiences and use several ad types than to team up with one with a massive following for a single ad. It’s just risky to pay a significant sum for a single ad in hopes that it will reach and convert a larger audience. If the copy isn’t spot on, people won’t remember it and you can lose the single opportunity you had.
A bigger audience doesn’t always mean more conversions. It’s better to opt for a smaller, but more engaged listener base, and you can only get this from focused, niche-relevant shows.
Focus on Niche-Related Shows
While podcast demographics are typically one-sided, with listeners being from the same generational group, the differences lie in segmentation. Partnering up with niche podcasts, that are relevant to your industry or services can help you create a closer connection with their audiences too.
Research Competitors and Podcasters
How do your competitors approach podcast ads? Are they missing out or cashing in? Which shows do they use for ads and what type of ads are they running? Examine your competition to see what resonates with listeners the most and which topics are most relevant. Don’t imitate, just use their example to make your campaign better.
You should also research the podcasters you are teaming up with. Address the popularity of the podcast by looking at episode download numbers. Consider tracking downloads for episodes for 30 days, starting from their release dates to get a better feel for their popularity or how dedicated their listeners are.
Send Product Samples
If applicable, sending a product sample to the podcast team could be a great idea. This will enable the host to gain first-hand experience with it, creating a more authentic and engaging ad. In the case of sponsored interviews and other, more elaborate ad formats, having the product there during the podcast may also help grab more attention.
Measure Results
Robust analytics are also vital for your podcast ad campaigns. It’s essential for working out your return on investment. The best way to get a good idea of this is to compare the budget spent on your campaign versus the money the ads have helped you generate.
This is pivotal if you are running several ads on different shows and can help you determine what makes more sense financially, enabling you to drop certain shows and focus more on others.
In addition to overall ROI and promo code usage, it’s vital to focus on indirect attribution. For instance, you may experience significant website traffic increases or improved sales following the ad airing.
You may also include a quick poll in your email newsletter asking how people heard about your ad, with ‘podcast ads’ as one of the options.
Finishing Thoughts on Podcast Ad Rates
Understanding the global impact of podcasts can be challenging, given that most shows rely solely on audio to grab and maintain attention in an age where the average attention span of an adult is 8.25 seconds.
However, the rising popularity of podcasts demonstrates that advertising on them is a strategic move for any brand willing to present its offerings to a qualified, niche audience that aligns closely with their ideal customer profile.
Tune into DesignRush’s podcast if you have a keen interest in business, marketing, and technology and are looking for a new podcast to get stuck into.
Podcast Ad Rates FAQs
Does audience size matter in podcast ad campaigns?
Not in every case. A large audience may seem attractive at first, but a single ad will cost you more than several advertisements on a few different shows. As such, if you have a smaller budget, it makes sense to have a more engaged but smaller audience and target them with two or more well-scripted ads.
Are baked-in ads better than dynamic ads?
Baked-in ads are integral parts of an episode’s original recording, meaning, they will be in the show permanently, and can’t be deleted or replaced. This can be highly beneficial for brands, as most podcasts will be available even long after they’ve aired. Dynamic ads also have their benefits: they can be moved from one episode to the other and it’s easier to ask creators to place them elsewhere, such as on social media or even YouTube.
Is podcast advertising worth it?
In addition to being a great way to engage with a younger audience, it’s also an excellent method to advertise to already engaged and qualified listeners. Teaming up with niche-related shows can help you raise brand awareness and baked-in ads along with paid interviews can keep the marketing momentum going even when an episode has aired.
