At least 464 million people listen to podcasts, with the average user consuming up to 7 hours of content weekly.
These statistics have two implications for your business:
- A gradually-growing audience to which you can market your products
- The possibility of listeners interacting with your podcast ads several times a week
However, you must understand how podcast ads work to ensure maximum return on investment.
This article highlights the most essential information about podcast advertising, including rates and best practices.
TL;DR – Average Podcast Advertising Rates
Can’t read the full article right now? Here’s a summary of what is discussed in the article:
- Advertising rates range from $10 to $30 per 1,000 downloads.
- Factors influencing advertising rates include audience size, ad placement, and content niche.
- As a business owner, you can establish private podcasts to build an online community around your brand.
Keep reading for a detailed guide on how to advertise on podcasts.
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How Does Podcast Advertising Work?
Podcast advertising works like promoting a product or brand on radio and TV platforms. You buy placement slots to get your ad(s) broadcast to your target audience.
Additionally, you can request to have your ad inserted into multiple slots per episode or show.
Regular advertising helps get people talking about your products or services. It can also influence listeners’ perception of your brand, helping you create a positive online image.
There are several reasons you might want to advertise on a podcast:
- Reach a wider audience: Podcast ads can help promote your brand to new audiences.
- Promote an upcoming event: You can advertise on podcasts to hype upcoming events, such as product launches.
- Build an online community: Podcast advertising helps build an online community around your brand, effectively establishing social proof and credibility.
- Direct traffic to other platforms: Advertising also drives attention to other platforms connected to your brand, including your website and social media pages.
- Brand recognition: Regular advertising reminds listeners about your brand, making it the go-to option when they need products or services related to your business category.
Different Types of Podcast Ads
Podcast ads can be grouped into categories depending on placement, format, and delivery method. Let’s discuss them in detail below.
Based on the Ad Format
Below are various podcast ad formats you can use to promote your product:
- Live host-read: Delivered by a podcast host when recording a show or episode. The host often starts a conversation that builds up to an ad about your product.
- Pre-produced host-read: Recorded by the podcast host in advance to be played during the show.
- Voice-over recordings: Professionally produced jingles, often by third-party voice artists or marketing agencies. Alternatively, you can record the ad and submit it to the podcast host to incorporate it into their show.
Based on Ad Placement
There are three types of podcast ad placements:
- Pre-roll ads: Played at the beginning of a podcast show.
- Mid-roll ads: Inserted in the middle of a podcast episode or when the host discusses the show’s main subject.
- Post-roll ads: Placed at the end of a podcast episode.
Based on the Ad Delivery Method
There are two main delivery methods for podcast ads:
- Dynamic ads: They use programmatic advertising to place ads based on the target audience. You can request to insert personalized ads for different markets based on geographic regions and demographics.
- Baked-in ads: Inserted indefinitely into a podcast episode. The ads can only be removed from an episode by being edited out.
Factors that Influence Podcast Advertising Costs
Podcast advertising rates vary depending on multiple factors, including the target audience, market niche, and ad placement.
We have prepared a table illustrating how the factors impact the expected podcast ad costs.
| Factor | Context | Example |
|---|---|---|
| Audience Size | Platforms with huge audiences charge higher than medium-sized or small podcasts. | Large audience: $30 - $50 CPM Medium-sized: $20 - $40 CPM Small: $10 - $20 CPM |
| Podcast Niche | Podcasts focusing on highly specific niches charge higher CPMs than those discussing moderate or general topics. | General: $10 - $20 CPM Moderate: $15 - $30 CPM Highly focused: $50 - $100 CPM |
| Ad Length | CPM charges increase with ad length. | 30 seconds: $10 to $25 CPM 60 seconds: $20 - $50 CPM 90 seconds+: $30 - $70 CPM |
| Ad Placement | Ad placement influences CPM. Post-roll ads are the cheapest, while mid-rolls are the priciest. | Pre-roll ads: $15 - $30 CPM Mid-roll ads: $25 - $45 CPM Post-roll ads: $10 - $25 CPM |
| Host-read or Pre-Produced | Host-read ads cost more than standard ads. | Pre-recorded ads: $15 - $50 Host-read: standard CPM + 10% - 30% margin |
| Guest Appearance | The rates might vary based on various factors. For example, suppose you are a prominent public figure. You could negotiate lower CPMs if appearing on a podcast offers benefits like attracting more listeners to the show. In contrast, you might incur higher CPMs for appearing on top-ranked podcasts. | Scenario 1: Guest appearance without additional podcast sponsorship fees Scenario 2: Charged according to the podcast’s rate card: $200-$1,000+ for a guest appearance on the show |
Sources: independentpodcast.network, influencermarketinghub.com, adresultsmedia.com, eofire.com
Average Podcast Advertising Rates
As the table highlights, average podcast advertising rates vary depending on multiple factors. However, most podcasters use standard industry rates to set their CPMs.
For example, the average podcast ad rates based on placement are:
- Pre-roll ads: $20
- Mid-roll ads: $30
- Post-roll ads: $10
Ways to Determine the Podcast Advertising Effectiveness
Below are five effective ways to measure podcast advertising effectiveness:
- Lead conversions: Track the number of listeners who heeded your call to action. Examples of targeted actions include product orders, app installs, sign-ups, and membership purchases.
- Number of promo codes used: Provide a unique promo code for each podcast or episode. Next, monitor purchases or targeted actions linked to the promo codes.
- Podcast ad campaign data: Check the number of unique impressions, replays, and changes in episode downloads. The data can help you contextualize the effectiveness of podcast ads in reaching your target audience.
- Number of vanity URL clicks: Monitor the number of listeners who clicked on your vanity links to complete the targeted action. The data should give you insight into how listeners related to the podcast ad.
- Brand lift studies: Conduct surveys to evaluate changes in the target audience’s perception of your brand. For example, you can request potential leads to score their likelihood to purchase your products after listening to the podcast ads.
How to Advertise on Podcasts
Here’s a step-by-step guide for advertising on podcasts:
- Define your goals: Set clear objectives of what you want to achieve with the ads. Also, define KPIs for monitoring performance.
- Identify the target audience: Define your target audience, including their demographics. Also, identify your unique selling points.
- Pick the best-fit platforms: Research podcasts offering the best ROI for your ads.
- Determine your ad spend: Set a budget for the podcast ads. It should account for the type of ad, placement, and frequency.
- Decide on the ad type and format: Choose between pre-produced and host-read ads. Also, decide on ad placement: pre-, mid-, or post-roll.
- Negotiate ad slots: Approach suitable podcasts and negotiate ad placement and CPMs.
- Publish the ads: Launch the ads through the selected podcasts.
- Track performance: Monitor changes in podcast metrics and compare them to KPIs.
Host Private Podcasts on Hello Audio
Paid podcast ads are a great way to promote your products or brand. But do you know you can create a podcast for your business?
There are numerous benefits of podcasting, including generating leads, connecting with customers, and shaping your brand’s online image.
However, you must use the right hosting platform to manage your private podcasts.
Our platform — Hello Audio — lets you organize content into personalized feeds to share with targeted audiences. It also supports automated actions like recommending related content based on listener behavior. This helps keep your audience engaged, forging emotional connections with potential and existing customers.
If you are an educator or coach, use Hello Audio to easily repurpose content with private podcasts. Convert your online courses, webinars, and coaching sessions, whether audio or video, into private podcasts in minutes.
Looking for a corporate podcast hosting solution for your private podcasts? Explore our instant demo section to understand how private podcasts can help you grow your audience and engagement.
Frequently Asked Questions (FAQs)
Below, we answer the most commonly asked questions about podcast advertising:
Are Podcast Ads Targeted?
Yes. Podcast ads are targeted.
The platforms use analytics to target lookalike audiences who might be interested in your product.
Is Podcast Advertising Effective?
Yes. Podcast advertising is effective in several ways.
First, it introduces your product or brand to potential leads. Second, regular advertising makes your brand memorable, increasing its recall value.
What Are the Average Podcast Ad Rates?
Podcast ad rates range between $10 and $30 per 1,000 downloads.
However, they vary based on audience size, ad length, podcast niche, and placement.
Conclusion
Podcast advertising offers an effective way to position your brand to attract potential customers. However, you must have a practical strategy to maximize your expected ROI.
We recommend combining podcast advertising with other promotion strategies, such as private podcasts. This can boost listener engagement, as private podcasts help you connect with your audience and create an online community.
Hello Audio offers the best private podcasting platform. You can personalize private feeds for your listeners and use trigger actions to capture and retain their attention.
Thousands of businesses and professionals use Hello Audio to create private podcasts for their audiences. Join our platform and enjoy our free 7-day trial!
