2020 could be considered the Year of the Podcast. With lockdowns affecting millions across the US, people have been turning to alternative forms of entertainment. This is especially true of podcasts, both listening and launching their own. According to eMarketer, listenership is estimated to double by the end of 2020 to 105.6 million and grow by 28% by 2024. In other words, podcasts are here to stay.
Why is podcast marketing effective?
Podcasts have massive reach, which make them highly effective mediums for marketers to connect with target audiences. While they currently skew young, Caucasian and male, these audiences are quickly becoming more representative of other demographics.
This reach is considered even more valuable by marketers because listeners are highly engaged and they trust the messages delivered by podcast hosts. In fact, a 2018 Spotify & Crowd DNA study found that “81% of podcast listeners have taken action after hearing audio ads during a podcast”.
Some of the most successful brands today run ads during podcasts to benefit from the high ROI they offer. But how does it all work? This rest of this post explores the basics of podcast marketing, including placements, types, pricing and more.
What’s the best way to find the right podcasts to advertise on?
Finding podcasts to run ads on is a common marketing challenge. But there are a few simple steps to identifying those that are compatible with a brand.
- Personally reach out to podcasts to inquire about ad opportunities
- Reach out to producers to connect with potential podcasts
- Use a podcast advertising platform such as Acast or Midroll
What are common podcast ad placements?
- Pre-roll: Placements at the beginning of episodes thought to reach more listeners as many drop off further in.
- Mid-roll: Placements in the middle of episodes considered to be premium because they reach highly engaged listeners. As a result, they tend to cost more.
- Post-roll: Placements at the end of episodes, which might not perform as well as others but are often less expensive.
What are common types of podcast ads?
- Sponsored Content: The podcast creates content related to a brand’s industry and its host mentions that it was sponsored by that brand. This is a good way to raise brand awareness.
- Native: A brand creates an ad that is read by the podcast host. When endorsed by a trusted podcast host, it tends to perform well.
- Interviews: A spokesperson from a brand joins the host during an episode. This is a unique way to get in front of the target audience.
What are podcast advertising rates?
Ads are priced on a CPM basis. While this can vary depending on the placement and type, it typically ranges between $18-$25 CPM. Price points are more expensive than channels with lower engagement such as terrestrial radio or Facebook.
What does the future of podcasts in 2021 look like?
Podcast marketing has experienced rapid growth and change in the past year. Expect these trends to continue while the medium caters to the needs of both listeners and marketers alike.
- Increased monetization opportunities: More podcasts will be available for advertising
- Industry consolidation: Podcast networks and ad technology will consolidate
- Increased discoverability: Podcasts will become more discoverable to audiences via tactics like SEO, social media and app directories
Curious how podcast marketing can help your brand? Want to launch a podcast of your own? Contact us for best practices.