Quick Guide to Podcast Advertising
Integrate ads that make you money while people enjoy them
You can make money from your podcast once you figure out the advertising landscape.
And you should! Advertisers are all over podcast content because of the millions of listeners being added each year. The number of Americans that listen to podcasts has doubled in the last nine years. And they plan on spending $500 million on ads in 2020.
Here is a quick guide on how to navigate podcast advertising: from why it’s growing, to tracking ad performance and integrating your ads… I’ve got you covered.
Why Is Podcast Advertising Growing?
Podcast advertising works. And it’s because it offers a unique benefit. An average podcast listener is pretty engaged when listening. It allows advertisers to deliver their message and see strong results from their call to action.
Hosts have built strong connections with their listeners. Podcasting is very intimate. When a host is recommending a brand through advertising, there’s trust.
Take the example with Madison Reed, a haircare company, which leveraged podcast ads to target a new demographic.
Madison Reed’s founder is passionate. She wanted to get her story to people who had never heard of the brand before. They honed in on the true-crime genre because the audience leaned female. They used promo codes to track customer spending to see if it was working.
They saw significant sales from the podcasting campaign in “many multiples above the promo code redemption.”
Types of Ads
There are two types that you can work with:
- 15-second pre-roll
- 60-second mid-roll
Pre-roll ads are a great way to get the attention of the listener right away since they are placed right before the host dives into their content.
Mid-roll ads are in the middle of the show where the host dives into the advertisers and talks about their product or service. These are great if a product is a little more complicated and needs more explanation.
The point is… know your product! You want to make sure your advertisers see the results they are looking for, so they can become long term partners.
Pricing your ads
When you’re starting out, you want to price your ads at the industry standard:
- $18 per 1,000 listens (CPMs) for a 15-second pre-roll
- $25 per 1,000 listens (CPMs) for a 60 second mid-roll ad
Once you have a good handle on how your podcasts are performing, you can raise these prices.
How do you integrate ads?
There are two ways you can do this:
- Baked-in: These are part of the podcast and are read live by the host. The great thing about these is that they will always live within the podcast.
- Dynamic: Once a podcast is done being recorded, these are inserted depending on your platform. Not all users will hear the same ad on the podcast with these.
Dynamic ads are a little more targeted and have stronger measurement capabilities, but baked-in ads feel a little more natural and perform 3.5 times better.
Tracking
Tracking will be important, so you can prove that your advertising is working for your clients. There are a couple of ways to ensure your data is accurate:
- Vanity URLs that are short, easy to remember, and direct people to a landing page.
- Promo codes work well too, and they are simple for people to use when they purchase a product.
Doing these will prove that your ads are working, and will draw a direct line between advertising spend and conversions.
What Makes a Good Ad?
Now that you know all the basics about podcast advertising, the real question is…what makes a good ad?
Let’s take a page from one of my favorite podcast hosts, Lisa Chow. If you aren’t familiar, Lisa Chow is an editor for the “New York Times” podcast, The Daily, and formally the host for the popular podcast StartUp by Gimlet Media. For context, StartUp has been downloaded tens of millions of times since 2014 and The Daily averages over two million listeners a day.
And the ads kill.
Lisa Chow uses the baked-in model. The ad is native and feels part of the episode. The reason she does this is that she wants to create a good listening experience, but also provides the advertiser opportunities to see a return on their investment. The listener trusts the host… remember?
The brands you partner with have to share the same values… that way you’re confident “recommending” it to your listeners.
At 12:30, you’ll hear Lisa Chow transition into a sponsorship with Ford. Lisa gives you an inside look at what it’s like being a Ford engineer. At this point, it begins to feel less like an ad, and more like a part of the overall narrative. It’s interesting, relevant, and native.
Using this method will help you build trust with your audience, but most importantly, it will provide them with a great listening experience.
Where Do You Start?
There are plenty of platforms out there that can get the job done. These are two that you can start off with:
- Anchor: All-in-one platform where you can create, distribute and also monetize your podcast. This is a platform that’s designed for every type of podcaster but recommended for beginners.
- Acast: All-in-one platform that’s a little more advanced with hosting, analytics, and ad tools.
Both platforms will support you with dynamic ads. It’s easy to navigate and to find advertisers. If you are just starting out, go with the dynamic ads option. You won’t have to develop copy and you can drive revenue right away.
With the baked-in ads, you’ll have to find brands you align with and eventually work out a mutual deal. This takes a little more work and involves a creative process…but the finished product is magical!
