With the burst of podcast popularity, companies are cashing in by investing in advertisements. Here’s what you need to know before taking the leap.
There’s no doubt that podcasts have arrived on the scene, and podcast advertisements can be a great opportunity. Podcast ads are typically read by the host in an authentic, off-the-cuff way, breaking free from overly-rehearsed radio commercials or picture perfect social media ads. But is podcast advertising the best decision for your business?
Cost: Podcast ads are sold per thousand listeners after 1 week. The current industry standard is $43 per thousand listeners for a brief preroll ad and a slightly longer midroll ad. Midroll ads are pricier since they’re harder for listeners to skip over, and it’s presumed that those listening are quite invested in the episode. That means a podcast with 10,000 weekly listeners will cost you $430 per episode. One with only 1,000 weekly listeners will only run you $43, making it a great opportunity for small businesses who are just dipping their toes in the podcast waters. The host may also throw in social media shout-outs or links within their podcast show notes.
Packages: Podcasts will typically offer advertisement packages between 4 and 20 episodes.
Opportunity: There are thousands of podcasts on iTunes on every subject imaginable. Many, many podcasts use sponsorships as a way to monetize. Other opportunities for podcasters include Patreon or selling products, but sponsors are a great way to create sustainable income for doing their show. The typical podcast has only one to three ads per show, meaning that your ad isn’t likely to get lost in the crowd.
Audience: Podcast listeners tend to be a fairly well-off group, according to WhyPodcasts.org. 41% of podcast listeners are pulling in $75K or higher per year, which means they might have extra funds to spend on your product or service.
Loyalty: Podcast listeners tend to be loyal, repeat listeners, which builds trust between the listener and the host. That means that whatever the host is selling, the listener is more apt to buy. These people listen to this host every week—they’re much more willing to trust them than an advertisement that just pops up on their newsfeed or on a webpage.
Metrics: If you want to see how effective your podcast ad is, direct the host to send listeners to a particular landing page and track the traffic. You can also create a unique discount code for podcast listeners and see how often it’s used. If you decide the ad isn’t seeing the ROI you were hoping for, you can always adjust course.