Podcast marketing is growing in a big way. According to Insider Intelligence, two-thirds of the U.S. population listens to digital audio once a month or more. Growth has been steady; by 2025, an estimated 231.5 million people in the U.S. will listen to digital audio. About 58% of digital audio listeners enjoy monthly podcasts. That represents 134 million podcast listeners ready to receive targeted podcast advertising.
No wonder more advertisers are choosing podcast advertising. Podcasts cover a wide range of topics and attract engaged, loyal, and invested listeners. An advertising campaign focusing on podcasts can target specific demographics and interests far better than other options. Plus, advertisers can gather up-to-the-minute data and live analytics from those ads, allowing precise impact assessments.
Podcast advertising comes with benefits:
Podcast advertising rates are low compared to radio and TV ad prices. Let's dive in and see how you can get started on an affordable budget.
Many factors impact advertising rates for podcasts. Let's look at three basic ways of paying for ads:
The most common model for podcast ad costs is CPM (cost per mille). Advertisers pay a fixed rate for every thousand impressions (also referred to as downloads or listens). CPM allows advertisers to reach a broad audience with their podcast advertising. It's often chosen to improve brand awareness and brand-building because it focuses on reach. Per our data, CPM rates are typically $15 to $25 per 1,000 listeners (CPM). So, for example, if you were paying $20 CPM and wanted to reach 15,000 listeners, the cost would be $300.
Another way to pay for ads is CPA (cost per acquisition). Prices are based on a specific action taken by the audience, such as making purchases, signing up, or downloading apps. This is commonly used in performance-based marketing, where the advertiser pays for actual results. CPA may be better for "direct response" — campaigns where the goal is immediate user action.
A third model is the flat fee, or flat rate. The advertiser pays a fixed amount for advertising on a certain number of podcast episodes or for a certain number of weeks or months. It's the least common of the three models. The advertiser doesn't know how many listeners the ad will reach, but it can be useful for connecting with a small, niche audience.
Podcast advertising costs are shaped by many different elements. When you develop a strategy for ad spend, it's important to account for every factor.
A professionally produced audio ad typically runs from $1,000 to $2,500 and requires several days or more in production time. That's a serious investment when you're not even sure it will bring the desired results.
In comparison, a podcast ad at AudioGO can be produced in two days or under 48 hours — and for only $10. Just submit a script, choose the language, pick a background track, and AudioGO does the rest. Ads will be delivered in 24 hours or less; after that, you can launch your ad within minutes.
Podcast ad rates depend on the type of ad chosen, so let's look at some of the most common types:
There are a few more factors that influence podcast ad rates.
Radio ad rates fluctuate significantly due to markets and timing. A further problem with making comparisons is that radio ads are often perceived as "only background noise," but podcast ads are a more immersive experience. Listeners are more invested in the content, which drives a greater engagement and response to podcast ads.
Traditional radio ads might cost $5,000 a week, depending on market, ad length, and audience size. And don't forget to add the cost of ad production, typically $1,000-$2,500.
But at AudioGO, a podcast ad budget as low as $250 is enough to get started. And that money buys an ad that reaches your target demographic faster and more effectively. Compare radio advertising vs AudioGO here.
An advertising campaign is a coordinated series of promotional activities with specific objectives for a target audience. These campaigns are designed to create awareness, generate interest, and ultimately drive purchases and engagement with a brand.
The budget plays a role in determining the reach, creative, targeting, and duration of the ad campaign.
Most advertising campaigns feature key components such as:
In developing an advertising budget, businesses must factor in several other factors, including:
The benefits of podcast advertising are substantial. No other form of advertising lets a business so narrowly define where their budget dollars are spent, and the ongoing growth in podcasts means ongoing growth in target audiences.
At AudioGO, we take the pain out of audio advertising. We're the leading audio advertising platform, providing businesses with a streamlined and effective solution for reaching their target audience. Our extensive advertising network of 64 million podcast listeners, user-friendly interface, extensive targeting options, and affordable pricing make AudioGO a go-to platform for advertisers of all levels.