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Interested in investing in podcast ads? You’ve come to the right place. There are many things you need to know about podcast advertising, but we are going to hit the hot spots. We will fill you in on what exactly podcast ads are, how you can use these resources to better your brand, show examples of great podcast ads, help you decipher which podcast is perfect for your brand, the financials, and if this fad actually works.
What Are Podcast Ads?
There are 525,000 active podcast shows with more than 18.5 million episodes out there, according to Apple. People are turning to podcasts instead of music, as they are in search of a relatable alternative that catches their ears. Podcast advertising is the practice of advertising your brand or company on a podcast through the host’s read-through of your advertisement. The audio ad contains information about your product while making strong connections between the particular audience and why they should purchase this brand. This tool is extremely valuable to brands because they can utilize the personal experience and rationale of a podcast host to their best advantage. Odds are that the listener trusts the knowledge and expertise of the podcast host because they have built loyalty towards them.
How They Work
There are two types of podcast advertisements: 15-second pre-roll and the 60-second mid-roll. These advertisements are different based on the length of the advertisements and the order in which they occur in a podcast. Like the old saying, any advertising is good advertising, applies here. The number of podcast users is quickly increasing, and using this avenue is essential for businesses’ success through this media-filled world. Brands are able to show their strengths through the personal experience of the podcast host, as the host is able to speak to their audience in a relatable and unique way. Podcast listeners are often listening to a podcast while driving or while doing daily chores, and advertisements are healthy “breaks” from the regular programming that can catch the listeners attention quickly. Brands can better their image by through the nature of the programming, as a podcast advertisement is presented under the guise of the product “coming up in conversation”. All in all, Podcast ads are not a tool for lead generation, but they gain exposure and increase brand awareness.
Cash app is an extremely strong example of effective podcast advertising. They utilize influencers such as Dax Shepherd and Leah Cummings. These influencers read advertisements and share their personal experience with Cash App. Leah Cummings and Dax Shepherd target a younger bracket of adults, between ages 20-35. Being an entirely digital company, Cash App is targeting younger adults who are tech-friendly. Dax and Leah share why they love Cash App, because of the convenience. Cash App brilliantly places their advertisements within these two podcast shows, which results in their business increasing by 25% since utilizing podcast advertisements.
For these ads to reach their utmost potential, it is essential that the brand knows its audience and chooses a podcast that targets exactly that audience. Overall marketing practices help companies and brands decipher their specific audience, but this is essential in picking the particular influencer who will recite their advertisements. For instance, a brand that targets sportswear should utilize influencers in the sports world. A company’s goal within podcast advertising is to utilize the best vehicle, influencer, to land their message with their target audience. Cash App successfully identified their audience as young-adults, and matched up perfectly with Dax Shepherd and Leah Cummings.
Podcast Ads by the Numbers
So… now for the finances. According to John Lee Dumas, founder of an award-willing Entrepreneur podcast named Entrepreneurs on Fire, states that podcast advertisements run $18 per 1,000 listens for a 15-second pre-roll advertisement. For a 60-minute mid-roll advertisement, brands pay $25 per 1,000 listens. This form of payment works in the brand’s favor, as they will only pay every time the ad reaches the listener. On the other hand, the more likely listeners are actively listening to the ad, the more it will cost. Although, the more listeners- the more potential customers. Mid-rolls cost more because listeners are more likely already engaged in the content of the podcast at that point.
So, does podcast advertising really work? Is podcast advertising worth the nearly $37,000 that some observers estimate brands pay for these services?
We are here to tell you: Yes, Yes, did I mention yes?
MeUndies, a company specializing in customizable underwear, expected to earn $75 million in revenue in 2017 while committing one-third of its marketing budget to podcast ads. They reached this goal and then some. Their continued spending of one-third of their marketing budget proves that they know what works for them. In this case, MeUndies is best represented on podcast advertisements.
All in all, podcast ads work. While following the steps we mentioned necessary, a brand can boost its personal image by gargantuan amounts. Understanding how podcast ads work and what they can do for your brand is the first step, and then you can watch your brand take off from there.
