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May 18, 2022
min read
Elad Schulman

Everything you need to know about podcast advertising

If you want to know what the future of advertising looks like, look no further. As podcasts become more and more popular, brands are choosing to use the platform to advertise their product or service, which is proving highly successful. Podcasting ad revenue rose by 19% over the last year and is set to exceed $2B by 2023. Who knew that chatting into a microphone would turn out to be so successful!

Not sure where to start with podcast advertising? That’s what we’re here for!

Why does podcast advertising work

More and more brands are venturing into the world of podcast advertising and that’s because, to put it simply, it works really well. Numerous studies have shown that podcast listeners are more likely to be aware of a brand after hearing a podcast advertisement. One study conducted by Midroll indicated that over half of podcast listeners are more likely to buy from brands that advertise via podcasts. 

The feeling of trust and intimacy that is quickly formed between the listener and the host makes sponsorships highly successful. Reports consistently show that 80% of podcast listeners can recall a brand advertised in a podcast and 62% of listeners are more likely to buy from brands that are advertised via podcasts. If listeners are listening to hours of episodes and multiple seasons of a podcast, that means that the listeners appreciate and trust the information that is being shared. 

Additionally, the fact that there’s a podcast for every niche appeals to advertisers. The secret to success when it comes to influencer marketing is making sure that you are focusing on your target audience. When starting out with influencer marketing, it’s often tempting to target the content creators that have the most followers or subscribers. However, you’re going to be the most successful when you team up with an influencer that represents the look and feel of your brand, and, of course, engages with your target audience. With the never-ending niche options in the podcast world, any brand out there will have no difficulty finding a podcast that lines up with their brand’s intention. Whether the podcast focuses on news stories from around the world or electronic gaming strategies, there’s no doubt that there’s a product that can be seamlessly mentioned throughout the podcast.

How podcast advertising works

It’s important to understand the different kinds of ads out there in the podcast world. An ad can either be read by the host live, called a ‘baked-in ad’, or the ad can be inserted after the podcast has already been recorded, which is known as ‘dynamic ad insertion’. We’ve outlined a few pros and cons of each type of ad:

Pros and cons for host-read ads and dynamic insertion ads

A brand usually gets to choose when they want the ad to play. A podcast episode can be anywhere from 20 minutes to over an hour-long, giving brands a number of choices when it comes to when they want their ad to play, which we’ve compiled for you here:

Pros and cons of pre-roll, mid-roll, and post-roll

Sponsors pay on a CPM (cost per thousand) basis. The creator’s rate usually ranges from $18 to $50 CPM, though the more popular a podcast is, the more they are able to demand. If you want to understand how to price a sponsorship placement on any podcast, make sure to check out our Podcast Ad Rate Calculator.

Measuring the success of your podcast ad

It’s important to measure the success of any and every ad that you run, to know what worked well and what worked less. With podcast advertisements, there are a couple of ways to measure just how well the audience received and interacted with the ad:

  1. Downloads per episode - number of unique downloads each episode receives to a computer, tablet or mobile device. Downloads per episode is the metric used when determining podcast CPM rates.
  2. Referral traffic - If a brand supplies the podcast with a referral link or a promo code, the brand will be able to see how much traffic they are receiving and just how many people are using a specific promo code.

How to find the right podcast to work with

Starting with a quick Google search to find podcasts that align with your brand can never hurt. For example, if you are a women’s daily vitamin brand, you may search for female-hosted podcasts that maybe focus on ‘healthy lifestyle’. You could jot down the podcasts that seem the most relevant to your brand.

Another way to find potential podcast partnerships is by checking out where your competitors are sponsoring. This may even lead you to stumble upon niches you didn’t initially think about, giving you even more podcast options.

This is also where ThoughtLeaders comes into the picture to help you out. The ThoughtLeaders platform can help you narrow down your choices, and allows you to check out brands and the channels they have sponsored, giving you an even better idea of where you should be focusing your marketing efforts. Our platform can even help you check out your competitors and see what they are dipping their toes into. ThoughtLeaders also has its very own podcast sponsorship planner, which is designed to guide you in planning podcast advertisements that hit your goals, by planning podcast campaigns according to your goals and budget, automatically calculating expected CPMs for each partnership, and summarizing high-level results, and more!

Tips for brands

  1. Don’t be afraid to reach out to ‘smaller’ influencers - Audience size isn’t everything. Micro-influencers are able to successfully connect with their audiences in an authentic manner, and as a brand, that’s your ultimate goal!
  2. Define your audience - knowing your target audience will help you know which niche is ideal for you to target. 
  3. Allow creative freedom - any influencer that you pair up with knows their audience the best. Give them the space to do what they do best and trust in their process.
  4. Build lasting relationships - a long-term relationship between a brand and a content creator increases the accountability of the brand. The more often the audience hears their favorite influencers mentioning your product, the more the audience will be inclined to check it out. 

Podcasts are in their prime right now, and now’s the time to take advantage of that! There are so many elements to building a strong and effective advertisement via podcasts, and ThoughtLeaders wants to be there to help you, every step of the way! Whether you’re a content creator or a brand, contact us and let us know exactly what you’re looking for. 

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