Podcasting Advertising 101: 4 Tips to Get A person Started

The number of People in america who listen to podcasts has more than doubled over the last ten years, according to Statista, without signs of slowing down.

podcast advertising 101

And where there’ s an audience, there’ h advertising. Businesses are expected to spend more than $500 million on podcast ads by the calendar year 2020.

It’ s no secret that pod-casts are becoming one of the most popular channels just for consumers to get information. Unfortunately, it’ s not always easy for advertisers to find out where to focus their budget to be able to capture (and keep) the attention from the right buyers.

Steve Pratt, a partner at Pacific cycles Content , puts it in this way :

“ People are so empowered now that they can avoid almost any kind of marketing they want. Individuals will ignore or skip something they don’ t like. Therefore brands have to start making stuff they love. ”

Thankfully, you will find surefire ways to engage with podcast audience and get a worthwhile return on your marketing investment .

Let’ s walk via four things to consider as you plan your own podcast advertising strategy.

But first, here are a few podcast marketing basics to help set the phase.

Podcast advertising tips: Terminology

To master any kind of new marketing concept, you have to be familiar with basic framework first.

If you’ re simply getting started with podcast advertising, here are a few from the most common terms you’ ll need to know to get started.

  • Pre-roll : an ad that will get mentioned at the beginning of a podcast.
  • Mid-roll : an ad that plays in the center of a podcast.
  • Outro : the last few words and phrases of a podcast where the advertiser may slip in a final call to action.
  • Offer program code : a coupon code that the sponsor gives to the audience to track conversion rate directly to the ad campaign.
  • Native ads: advertising that matches the delivery platform, as if it is action of it.
  • Podcatcher: the platform or even software used to play a podcasting.
  • Immediate response: marketing or even advertising that can be measured and tracked— for podcasts this is usually in the form of the URL or offer code.
  • CPM price: an ad cost measurement of the “ cost for each mille” (or per thousand) listens of a podcast.
  • CPA rate : the measurement of the “ cost for each acquisition, ” or cost to obtain one new customer as a result of a good advertisement.

Another way to familiarize yourself with podcast advertising is definitely by simply listening to successful podcasts. Listed below are eighteen of the top marketing podcasts , and Podbay. fm publishes the searchable ranking of the top-rated podcasts to give you ideas for how to plug your information into popular podcasts.

best podcasts for advertising

Typical Podcast Advertising Rates

According to AdvertiseCast, the industry typical rates for podcast advertising are usually:

  • $15 for any 10-second ad CPM
  • $18 for a 30-second ad CPM
  • $25 to get a 60-second ad CPM

Since CPM is cost for each mille or cost per one, 000 listeners , your own advertising costs will go up based on how many listeners the podcast offers. AdvertiseCast offers a handy price calculator that will help you estimate your complete costs. As you can see, if you run a 60-second spot on a podcast with one hundred, 000 listeners, you can expect to pay regarding $1500.

podcast advertising rates

If you’ re on a tight budget, smaller podcasts and shorter advertisement spots are obviously the way to go. (Also, check out these strategies for reaching your desired podcasting audiences through other means , like low-cost Facebook ads. )

Now that you are able to talk the talk and have noticed some effective ads in action, let’ s talk strategy.

1 . Find your fit

Here’ s some good news: 75% of podcast listeners not only pay attention to podcast advertisements, but they also follow specific phone calls to action after hearing all of them.

The key is within the connection to the audience. For example , GirlBoss runs many popular podcasts that cater nearly exclusively to women’s interests , and have a primarily women audience. It stands to reason, that regardless of its huge audience, an ad directed to male consumers (such a razor club) may not be the very best fit for a GirlBoss podcast.

how to run the podcast ad

Don’ t try to drive your ads where they don’ t belong based solely for the size of the audience. On the other hand, check out audience fit before you spend the dime, but be careful not to make presumptions about buying behaviors that make a mistake too far on the side of subtlety.

Blue Apron is an excellent illustration of this. They will recently ran advertisements on Adam Carolla’ s podcast . It seems like an odd fit initially, but because Carolla is familiar with the particular Blue Apron brand and has prepared with their recipes before, the advertisements were authentic and not forced.

NPR is very transparent with their particular audience demographics , posting statistics front-and-center on their podcast web page.   They even share support insights.

podcast sponsorship

They understand that audience fit is vital for podcast advertising success.

Companies like Midroll specialize in audience analytics. They say this particular about finding the right audience :

“ It’ s sensible not to adhere too strictly in order to category. Don’ t assume that humor audiences aren’ t also business owners, or that listeners to a sports activities podcast aren’ t interested in the comedy special. You may be surprised from how broad and eclectic target audience tastes and needs are. ”

podcast advertising strategies

It’ s a few connection with the audience.   With out it, the message is destabilized, and credibility is lost.

Sling Press has seen 2 to 3 times more engagement from podcasts than they will did from radio advertising. They will did this by making the validation real and authentic. How?

Henry Hwong, interim Key Marketing Officer, said, “ We all also want the host in order to use the product. “ For every sponsor that we engaged, we sent the Slingbox over for them to use. ”

It’ s an easy insurance plan to make sure the host can be familiar enough with the product to provide a credible endorsement.

Here’ s an useful (if slightly bizarre) example of the particular impact an engaged audience is wearing podcast advertising and revenue.

Nielsen found that among certain podcasting genres, juice sales were increased 8. 8% for avid podcasting listeners compared to juice-loving people who didn’ t listen to podcasts. It may not appear to be a big impact to the juice marketplace until you realize that it equates to regarding $2 billion in annual fruit juice revenue.

intro to podcast ads

The practice associated with engaging podcast listeners to impact consumer behavior has skyrocketed within popularity during the last several years, but podcasting has been around for almost two decades .  

Companies like Apple company have made it much easier in recent years to spot audience behaviors and track consumer metrics. With iOS 11, these people released a redesigned Podcast app and additional support for both podcast trailers and shows with multiple periods.

In 2017, Apple introduced a podcast analytics service to provide podcasters and advertisers a much deeper look into user behaviors, included whenever listeners drop from a show.

Thanks to new equipment and better analytics, advertisers have experienced time to refine podcast advertising techniques. Now that you know how to find the right audience, it’ s time to zero within on the best way to get their interest.

2 . Refine your own approach

Podcast ads primarily fall into two categories :

  • Baked in : These types of ads are part of the actual podcasting and are often read live from the podcast host. They will live on intended for eternity inside the podcast content. Everybody who downloads the podcast listens to the same ad.
  • Dynamically inserted : These types of ads are inserted after the podcasting ends, via an ad machine. Not all users will hear exactly the same dynamically inserted ad when they down load a podcast.  
kinds of podcasting advertising

(Image source)

How do you know which kind you should use?

Whilst there is a fairly even split between your two types, dynamically inserted advertisement spend grew by 51% throughout a year, according to a 2017 podcasting revenue study.

dynamic podcast ad stats

And of the particular baked in ads, live, host-read ads continue to be the preferred delivery kind.

types associated with podcast ads

There isn’ t the one-size-fits-all approach, but several businesses have measured CPA (cost for each acquisition) rates between the two advertisement types, and have found that cooked in ads tend to be about 3 or more. 5 times more efficient than dynamically inserted advertisements, despite the increase in dynamic ad investing.

In Nov of 2017, HowStuffWorks completely renewed their podcast advertising strategy, switching from dynamic ad spending in order to baked-in ads . Exactly why? Their audiences provided feedback which they felt “ shouted at” using the dynamic ads.  

Kurt Kaufer, CMO from Ad Results Media , describes their ad preference study this way:

We took a sample of our biggest clients in Q3 (who purchase both baked-in and dynamically put ads) and measured CPA ranges between the two ad placement strategies. On average, across all ad shipping types, baked-in ads were around 3. 5 times more efficient compared to dynamically inserted ads from a CERTIFIED PUBLIC ACCOUNTANT perspective . ”

But is there a moment and a place to use dynamically placed ads? Absolutely.

For example , if you need to A/B test your advertisement messaging , use a dynamically inserted ad so that you can compare 2 variants of your ad against one another.

Another reason to make use of dynamically inserted ads is if your articles is time-sensitive or contains a deal that will expire. You may not want it to reside on inside a podcast for perpetuity if it isn’ t evergreen.

Companies like Cabana specialize in assisting advertisers pinpoint the right delivery system for each of their ad campaigns.

Equally important to generating the right ads for the right target audience, is a clear picture of exactly what you’ re willing to pay for your own message to be heard.

3. Define your investment

Podcast advertising is effective and pervasive— but it isn’ to free.

The majority of podcasters use either a CPA or even CPM formulation to set their advertising rates, even though some may quote a flat fee. CPM is the most common.

Before you even approach a podcaster to ask for an ad spot, you will need a clear picture of your quantifiable goals. In other words, what do you plan to accomplish along with your ad campaign?

You’ ll also need a realistic budget. Estimate how much it will take to reach your goals and secure internal approval in advance to spend it.

Here’ s an example of a basic cost breakdown to put it into perspective:

If a podcaster’ h set CPM is $25, this means you would pay $25 for every 1000 (unique) downloads of the podcast by which you place your ad. In other words, in case a podcast has 10, 000 listens per episode, you would divide simply by 1, 000 and multiply the number of by your CPM, which is $25 in this instance. Your cost-per-episode for this podcast will be $250.

podcast ad cost breakdown

If you’ lso are unsure where to focus your advertisement budget or need some assist creating a realistic cost breakdown for the campaign, then work with a company such as AdvertiseCast to spot the right podcasts and how they cost advertisers . They can actually handle the billing so you can concentrate on the messaging.

The best part is that their services can cost you very little since they charge a commission rate for their services, but it is typically included in the podcaster.

Once you’ ve committed spending budget dollars to podcast advertising, you’ ll need to measure your achievement to iterate on your strategy plus scale future spending.

4. Track Your ROI

To get the data you need to confirm the return on your advertising purchase, you should build some tracking systems into your ads. There are several ways to do that.

One easy method is to include a vanity URL, that is a short, easy-to-remember web address to immediate listeners to a landing page.

Slate Group Companies conducted a recent brand name study for their investment podcast Prosperity Wits . Through the use of the vanity URL, they determined that will podcast ads were more than two times as successful compared to banner ads in driving brand name awareness.

You can even mention a promo code within your ad that listeners can use whenever they purchase. It’ s a simple way in order to attribute advertising spend directly to unique ad campaigns.

In fact , 95% of advertisers use some type of “ direct response ” promo code in their commercials, like this one from ShipStation .

podcast advertisement promo code

Offer codes draw an immediate line between podcast advertising invest and conversions.

Another easy way to attribute podcasting advertisements to conversions is with the use of surveys.

Inquire buyers or subscribers how they heard of your brand when they sign up or even make a purchase. It may fill in some blanks for leads that aren’ big t attributed to vanity URLs, promo requirements or other advertising tactics, yet resulted from a podcast ad. Development Marketing Pro estimates a 30% response rate , typically for survey responses.

The old adage “ exactly what isn’ t measured, cannot be improved” rings true for podcast marketers. Incorporate at least one measurement tool in most ad campaign to arm yourself with the right information to feature conversions and constantly improve your advertising success.

Listen up!

In case you haven’t heard enough persuasive podcast stats yet: 42 million Americans (or 15% of the US population) pay attention to a podcast every week .   That’ s five situations the number of people who go to the movies!

Advertisers recognize the rapt audience when they see a single: 85% of people who click “ play” on a podcast listen to nearly all of it.

Without the right study, however , it’ s difficult to determine the right podcast to deliver your information.

Advertisers that will explore which podcasters have the correct audience demographics for their brand would be the ones whose messages lead to sales. Understand where you fit, what kind of advertisements will resonate with your audience and the way to invest the right resources to see outcomes.

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