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Podcasts have quickly taken their place in the media. They have become a trendy medium for telling a story and brand advertising. The number of podcasts has been increasing ever since their growing popularity. According to the statistics, the number of podcast shows is currently over one million. Along with that, there are over 43 million episodes as of 2021. 

Podcasts are an engaging way of communicating a message or a story to the audience. The number of people who watch podcasts has been increasing ever since as well. In the US, for example, the number of people who listened to the podcasts have doubled over the last decade. These proportions are expected to increase in the future further. 

The above statistics shed some light on the growing popularity of podcasts. With their increasing popularity also comes a great variety in the genre of podcasts. Although the most famous music genre, there are many other genres of podcasts out there, such as news, science, sports, and arts. 

The value of podcasts is not limited to entertainment. Podcasts are a great tool to integrate into your marketing strategy. Podcasts offer an interactive way of engaging bloggers and news publications. Podcasts are included in the domain of modern media, and just like any other form of modern media, they have ad placements. 

The ad revenue generated by podcasts was estimated to be around 480 million US dollars in 2018. This amount is expected to exceed one billion US dollars by 2021. Do these statistics pique your interest in podcast advertising? If yes, then you are at the right place! 

In this article, we will cover everything you need to know about podcast advertising. So without further ado, let's begin! 

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Benefits Of Podcast Advertising 

Let’s start the article with the reasons why brands invest in podcast advertising. 

Podcast Advertising Offers A Wider Incentive For Support 

When audiences encounter product ads on their favorite podcasts, they are much more like to buy that product. The reason is pretty simple; the audience wants to show their support for their favorite podcasts by purchasing products from the brands that sponsor them. It's also a well-known fact that people are much more likely to buy from the bands their favorite media personalities endorse. 

Podcast Advertising Offers A Wider Scope Of Audience 

There are so many podcasts being aired that cover a wide range of genres. This diversity ensures that your ad placements reach a broader demographic. As seen in the statistics, the number of people who tune in for podcasts has also increased. Product advertising is simply one of the best ways to appeal to a higher proportion of the audience. 

Podcast Advertising Makes It Easy To Target Younger Generation 

It’s estimated that the number of people between the ages of 12-34 who listen to podcasts has been increasing. Placing ads on podcasts makes it easy for you to target the younger generation and earn many consumers from that demographic. 

Those were some reasons to help you get the picture of why podcast advertising is so appealing to brands. Let us now cover the basics of podcast advertising. 

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The Basics Of Podcast Advertising 

If you have just decided to avail the numerous benefits of podcast advertising, you should first focus on getting yourself acquainted with podcast advertising's basic framework. The basic framework includes the common terminologies, podcast locations to place ads, and the common ways to place ads. 

Here are the common terminologies you will encounter in podcast advertising: 

• Podcatcher - This refers to the software or the platform that hosts the podcast. 
• Offer code - These are the codes that the host gives to the audience to encourage purchases from the said brand. 
• Native ads - These are the ad placements that are a relevant extension of the said platform. 
• Direct response - This refers to the podcasting advertising that can be tracked or measured through a URL or an offer code. 
• CPM rate - This refers to the cost per mille rate of a podcast. It is a measurement of ad expenses. 
• CPA rate - This refers to the cost per acquisition rate of a podcast, i.e., the cost to acquire a new customer after an advertisement. 
  

So that was the breakdown of the standard terms you can expect to encounter when working with podcast advertising. Let's move on to the sections of the podcast where brands typically place their ads: 

• Pre-roll - These are the ads that get mentioned at the very beginning of the podcast. They work similarly to YouTube pre-roll advertisements.  
• Mid-roll - As the name suggests, this refers to the advertisements placed in the middle of the podcast. Multiple mid-roll ads can be placed in the podcast, depending on the length of the podcast. 
• Post-roll - This refers to the call-to-action, which the advertiser can place at the podcast's final moments. 
  

Mid-rolls are the most valuable out of the bunch; as the ads appear during the podcast, people are more likely to pay attention to them. Furthermore, since mid-rolls occupy a place in the podcast's content, the audience is less likely to skip them. When it comes to podcast advertising, there are two ways brands place their ads: 

• Baked-in ads - These are the ad placements in audio format and occupy a position alongside the podcast's audio recording. Usually, these ads are narrated and recorded by the podcast's host himself. 

Baked-in ads are narrated alongside the official recording of the podcast by the host, or he might edit them later. Since baked-in ads are integrated into the show's content, they stay there forever and offer an evergreen opportunity for brand awareness and potential new consumers. The audience often searches for the older episodes of their favorite podcasts; thus, they also get exposed to your ad placements. 

Another good thing about baked-in ads is that you don't have to worry about temporarily suspending the podcast when you place them. Since the ad itself is a part of the podcast's content, a flow is maintained, and the audience does not get irritated by random noises in the middle of their favorite show. The more natural the host makes the transition from the podcast into the ad sound, the more likely the audience becomes disturbed. 

A significant benefit of using baked-in ads is that they reflect the host's personal experience associated with your product or services. This has a significant implication on how the audience will respond to the ads. People are more likely to buy from brands that their favorite media personalities endorse. By allowing hosts to reflect upon their experiences with your brand, you open countless opportunities for gaining new customers. 

Since the baked-in ads are not pre-recorded and part of the podcast recording, they come out as much more natural and spontaneous. Each time you place a baked-in ad, the host introduces the product in a different fashion or with a different style. This prevents the advertisement from becoming boring or repetitive and keeps everything fresh. 

Now let’s look at the other type of podcast advertisement: 

• Dynamically inserted ad - These are the ads that are placed on the podcast by ad network places. The nature of the ads depends on the specific user watching the podcast. These names are pre-recorded and are recorded somewhere else. 
  

Dynamically inserted ads lack most of the benefits that baked-in ads offer, such as natural placement and the maintenance of the flow. With that said, there are many other benefits of dynamically inserted ads as well. Even though most people will argue that baked-in ads are more successful in generating ad revenues, you can not wholly ignore dynamically inserted ads. 

When an ad server is placing your ads on a podcast, it does so on-demand, i.e., keeping in mind the specific user who is watching the ad, what this means that each time a person tunes in to watch the podcast, he is given the latest product advertisement from your brand. Since the ad placement is relevant to the user's needs, the user is likely to pay attention to the ad. 

Furthermore, the ads that are being served by ad servers are more precise when you want to target a specific demographic of your audience. Ad servers' measurement capabilities indeed take the cake when it comes to precise ad placements. Compare this to baked-in ads where you have a relatively less accurate insight into the kind of audience you are serving ads to. 

Dynamically inserted ads offer more diversity when it comes to serving ads to your audience. When you place baked-in ads in a podcast, everyone is done the same ad regardless of geographic location and other factors such as age. When you rely on an ad server, you choose to show different ads to people from different geographic areas and demographics. 

This way, you get more creative control and flexibility over your ad placements. Both baked-in ads and dynamically inserted ads have benefits that can be mutually exclusive at times. It's up to you what route you want to take. Remember that not everything has to be a zero-sum game. You can generate revenue both from dynamically inserted ads and baked-in ads. 

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Some Tips On Creating Successful Podcast Ad Campaigns 

You have already obtained the bulk of insight into podcast advertising. Here are some additional tips on implementing everything you have learned about podcast advertising.  

Start By Considering Podcast Demographics 

Before you start placing ads on podcasts, consider the demographics you want to target. Many demographics are attracted to weekly podcasts, but the dominant group among these demographics belongs to Millenials. Around 43% of podcast shows are being consumed by millennials, while the rest belongs to Gen Z, Gen X, and the older generation. 

Millennials are the appropriate demographics for your product placements, not just because they are more likely to listen to the podcasts longer but because they hold well-paying jobs and have received higher education. They have the money to buy your products, and they will be interested in learning about your products and services if your products or services solve their modern problems. 

Acquaint Yourself With The Prices For Podcast Ad 

The first thing you need to know when planning to place ad campaigns on podcasts is to learn about the standard prices for podcast advertising. Fortunately, you don't have a lot to search about. All podcasters charge the same amount of money from you for placing your ads in their podcasts. 

The prices of podcast advertisements are mostly based on CPM or cost per mille. CPM rate depends on the total listeners a podcast receives on every episode. What you need to do is to pick a podcast show that attracts a higher amount of visitors. This way, you can ensure that you are investing your money in the right place. This brings us to our next point. 

Pick A Podcast Genre That Is Relevant To Your Brand 

There are over a million podcast shows out there. So which podcast show should you pick to place your ads in? It all depends on the product or service you are selling to your audience. Picking a genre that best suits your products and services ensures that you are serving your ads to people interested in buying them. 

Along with that, when a product or service is related to the podcast's subject, it comes out as more natural to the audience. It does not abruptly disrupt the flow of the podcast as random ads do. The audience can then pay more attention to your ad placements and be more motivated to buy your products. 

Take Inspiration 

Another great strategy is to look at the pre-existing ad placements in podcasts and take inspiration from them. Evaluate where you stand with your competitors and determine which of their business strategies you might want to include in your business strategy. This is also a great way of learning about podcast advertising. 

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The Takeaway 

Podcast advertising is a powerful tool to promote brand awareness and raise your sales with significant revenue. However, just like any other tool, it requires hard work and the right approach. As long as you are consistent and keep polishing, you will be on your way towards success! 

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