The Rise of Podcast Advertising
In today's digital era, podcasts have emerged as a popular medium, engaging audiences with a diverse range of content from true crime stories to comedy, news analysis, sports commentary and more. This convenient and engaging format has not only spurred podcast creators to continually innovate with compelling content but has also opened up new avenues for monetization. To offset production costs, many podcasts incorporate advertising spots, typically lasting 15-30 seconds, showcasing products or services that resonate with their audience. Often, these ads gain added authenticity and trust when read by the podcast hosts themselves.
Podcast advertising has established itself as a potent tool for businesses aiming to broadcast their message to both broad and specific audiences, transcending geographical and linguistic barriers. Podcasting ad revenue is expected to surpass $2 billion this year and exceed $3.5 billion by 2026. This medium offers a distinct advantage over traditional radio advertising, thanks to advanced audio ad technology that enables greater reach and more precise targeting, leading to more impactful campaign outcomes.
In this guide, we show how easy it is for businesses to tap into this growing trend of podcast advertising. We'll highlight how the AudioGO platform simplifies the process, making it accessible and effective for businesses of all sizes. You'll learn about:
The benefits of podcast advertising and how to do it right, including:
- Audience reach and engagement
- Niche audience targeting
- Lower costs
- Choosing the right demographics
- Identifying the right podcasts
- Pricing strategies
The benefits of podcast advertising
Audience reach and engagement
Traditional radio advertising has long been used to reach consumers and businesses, but podcast advertising has emerged as a more effective way to target and engage potential customers. Consider these stats:
- Podcast advertising reaches over 75% of the U.S. population.
- 81% of podcast listeners take action based on the ads they hear.
- 41% of listeners trust ads more if they hear them on a podcast
Niche audience targeting
Podcast advertising allows businesses to communicate directly with an audience already showing interest in related topics. Niche brands and vertical businesses, such as those in real estate, home services, and health care, can advertise on relevant podcasts and know that they’ll reach potential customers.
Unlike radio ads, which often serve as background noise, podcast ads are seamlessly integrated into the content, fostering an immersive experience. This heightened engagement often translates into listeners becoming customers, as they invest time and attention in the podcasts they choose. Take for example this case study from an auto dealership which drove more business interest to its website.
Lower cost than traditional radio ads
With lower production costs and competitive ad placement rates, podcast ads give excellent value, especially for businesses on a tighter budget. It provides a more targeted and engaged audience compared to traditional radio advertising, especially beneficial for small businesses looking to maximize their advertising spend. Instead of broadcasting to a broad geographic area, businesses can focus on reaching a specific group of potential customers, ensuring more efficient use of their advertising budget. At AudioGO, businesses can get started on a budget as low as $250, which is more affordable than radio advertising costs which vary by city and state. Radio advertising costs average as much as $5,000 a week depending on location, ad length, and size of the listening audience. Producing radio commercials costs, on average, $1,000 to $2,500.
Engagement and interactivity
Digital audio ads can include interactive elements like calls to action, clickable links, tracking pixel for web visits, and audience retargeting.
Podcast advertising works well in combination with a display retargeting campaign. For example, as an ad platform tracks someone listening on one device, it can see if that the user has another device on the same IP address and send a banner ad to that second device. Studies indicate that this type of message reinforcement can quadruple the amount of clicks you would otherwise get from running displays ads on their own.
How to advertise on podcasts
At AudioGO, advertisers can create an impactful audio ad for as little as $10. Advertisers have more than 500 targeting options for the top streaming apps for music, radio, gaming, sports, and local and nation talk, as well as the top Spanish speaking publishers in the U.S. You can tailor campaigns based on several targeting parameters, ensuring maximum relevance and impact. Here are some tips on getting started with your audience targeting.
Choose the right demographics
Selecting the right target demographics can make or break the effectiveness of your audio advertising. Once you’ve created the right messaging for your advertisement, finding the right audience to hear it is key. With AudioGO, you can get as specific as you want to with your demographic, including:
- Age groups, including 18-24, 25-34, 35-44, 45-54, 55-64, and 65+
- Location by state, county, city, MSA (metropolitan state area), DMA (designated market area), or ZIP code
- By device, including mobile phones and tablets, PCs and laptops, or smart speakers
- Behavioral segments, with the ability to choose among 221 different user statuses and interests
- Predictive audiences, including interests, activities, and personas
- Day parting, including the day of the week and the time of day
- Genres, be it streaming content or podcast content
- Language, including English or Spanish
Identify the right podcasts
Identifying the right podcasts for your ads is just as vital for success as choosing the right demographic. Think about your product’s end-user and what kinds of podcasts they might listen to. AudioGO's user-friendly platform empowers advertisers to explore and select podcasts that precisely align with their target audience. Advertisers should also consider ad positioning: placing ads pre-roll (the beginning of the podcast), mid-roll (within the podcast), or post-roll (at the end of the podcast), based on their campaign objectives.
The appropriate ad length
The length of your audio ad plays a pivotal role in maintaining audience engagement. Advertisers should carefully consider the appropriate length based on the content and placement within the podcast episode. Pre-roll ads and post-roll ads typically run around 15 seconds but can go up to 30 seconds, and mid-roll ads usually take about 60 seconds.
Crafting your audio ad
Crafting a compelling audio ad involves many considerations, including the use of a voice actor, scriptwriting, and overall production quality. Advertisers should carefully consider the ad's tone, style, and content to make it resonate with the podcast's audience, and whether it’s a good idea to work with the podcast host to record the ad. Using professional voice talent is another way to boost overall quality.
AudioGO offers Predictive Audiences — an industry-first podcast solution that uses Comscore data and pairs it with AdsWizz’s AI transcription tech to extract keywords, topics, concepts, and even sentiments to find the best listening content for your ad. AudioGO also offers sample scripts — audio ad examples for businesses in such fields as insurance, education, staffing, home services, and food and beverage.
The two common methods for setting audio advertising rates are cost per mille (CPM) and cost per acquisition (CPA).
CPM means costs per a thousand impressions — the advertiser pays a specific price per 1,000 ads served. For example, if you want to run a 15-second pre-roll ad with a $10 CPM that will generate 100,000 listens, you’ll end up paying about $1,000.
For CPA cost models, pricing is based on the number of desired actions for the campaign, like purchases or sign-ups. With CPA, the advertiser pays only when listeners take specific actions.
AudioGO uses a fixed CPM pricing model to allow advertisers to more easily create and manage their audio advertising costs.
AudioGO's ad campaign reporting features empower advertisers to track the performance of their ads in real time, something traditional radio can't provide. Once your ad is live, you can easily track conversion rates and get breakdowns based on your demographic selections and live metrics that detail the following:
- Total/daily ad spend
- Start and end dates
- Total/daily impressions (ad plays)
- Total/daily clicks (includes retargeted display clicks)
- Total/daily reach (the number of unique listeners who heard your ad)
You’ll also get detailed audience metrics broken down by:
- Behavioral segments
All of this data allows for informed decision-making, enabling advertisers to adjust their campaigns for optimal results. Monitoring metrics such as impressions, clicks, and conversions provides valuable insights into the effectiveness of the campaign and can allow you to pivot as needed to increase the overall performance of your advertisements.
Create your audio ad today
AudioGO is the leading audio advertising platform, providing businesses with a streamlined and effective solution for reaching their target audience. Its user-friendly interface, extensive targeting options, and affordable pricing make AudioGO a go-to platform for advertisers of all levels. Get started today!