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Share on XIf you’re reading this, you’re probably looking to expand your advertising strategy through podcasts, but you still have one critical question: what is podcast advertising?
Podcast advertising lets you speak to potential customers through digital audio ads within podcast episodes. But in a world where we primarily associate advertising with visuals, you may be wondering how this ad strategy works and how you can take advantage of it to grow your brand.
Let’s dive into the world of podcast advertising.
Does anyone listen to podcast ads?
“Does anyone have any good podcast recommendations?”
Chances are you’ve heard this phrase within the past year, and maybe even more recently than that. That’s probably because podcast listenership has hit an all-time high, with nearly 100 million Americans tuning in every week.
On top of that, U.S. podcast advertising spend is expected to top $2.28 billion in 2024, marking 15.9% growth year-over-year, according to eMarketer. Podcast ads are expected to pass $3 billion in ad spend by 2026, which will account for 35% of digital audio services spend.
The benefits of podcast advertising
Podcasts are an incredibly popular source of entertainment. Whether you’re a true crime fanatic, a pop culture buff, or a marketer wanting to learn more about stopping ad fraud, there’s a podcast for just about anything.
With that, there are multiple benefits to launching a podcast advertising campaign:
- Incremental Reach: Podcast advertising allows you to replenish the top of your marketing funnel with new customers. Podcast listeners are primarily a younger audience, so you can market to them and advertise on radio or traditional TV to avoid targeting a duplicative audience.
- Improved Overall Marketing Performance: Adding podcast advertising to your campaigns can improve performance across the board. The Guardian found that the compounding effects of podcast ads as part of a media mix helped 34% of listeners learn something new about a brand.
- Increased Brand Trust: A study conducted by Acast and Nielsen found that 63% of respondents trust the podcast host to whom they’re listening. An additional 80% said they trusted the host’s recommendations.
- Increased Audience Reach: Podcast ads let you reach audiences beyond traditional TV, social media, and display campaigns. For example, a podcast ad campaign opens up your reach to millions of people listening to podcasts on their morning and evening commutes to work.
How do ads work in podcasts?
Like most advertising strategies, there isn’t a one-size-fits-all approach to podcast advertising. Brands can choose from these three common formats when it comes to delivering their ads via podcast:
1. Host-read sponsorships
Other names for this format include host-read ads, sponsor ads—or more commonly today—sponsorships.
These are longer, editorialized commercial messages the podcaster delivers themselves. The idea behind these ads is that the influencer delivers a creative and authentic message to their audience promoting the brand sponsoring the podcast episode.
With the right timing, a podcast host can segue into these live reads naturally from a topic, and the audience may be more likely to engage with the product or service. A typical host-read ad can range from 60 seconds to a couple of minutes.
2. Pre-recorded ads
Also known as announcer-read ads, pre-produced ads, or just audio ads, pre-recorded ads are created by the advertiser and given to the podcast host to play during an ad break.
Most pre-recorded audio ads run anywhere from 15-30 seconds, and are dynamically inserted into podcast shows by targeting campaign dates, geographic location, podcast categories, and audience demographics. This targeting is set up before launching a campaign to narrow down which listeners should hear your ad and which shouldn’t.
3. Branded content
Though not as common as sponsorships and audio ads, branded content integrates a promotional message into the editorial content of the podcast.
This can be in the form of a branded segment or episode, and can even encompass an entire series. For this format to succeed, the branded content and podcast advertising the brand must align in their messaging to feel organic and resonate with the audience in a non-intrusive manner.
Where is the best place to insert podcast ads?
Different ad spots dictate when your audience will hear your ads during the podcast. Like podcast ad formats, there are three types of ad spaces:
- Pre-roll ads are placed at the beginning of the podcast episode. Pre-roll ads are considered effective because most people will just let them play since they are leading into the episode.
- Mid-roll ads are placed in the middle of an episode that is 10 minutes or longer. Most consumers will be engaged in other activities by this point, making it highly likely that they will let the ad play. As a result, this is the most lucrative place for audio ads.
- Post-roll ads play at the end of an episode. While there is a chance listeners will just let the ad play while they wait for the next episode, there is also a chance they turn off the podcast before they can hear the ad.
Dynamic vs. baked-in ads
How do ads work in podcasts that are no longer relevant? And what if I want my ads to reach different audiences?
Along with choosing from the three types of formats and ad placements, there are also two different ways to fill an ad slot: ads can be “baked-in” or inserted dynamically.
- Baked-in ads are added to the podcast audio file, making it a permanent ad placement. All listeners will hear the same ad, and it will remain in the episode as long as it is up, meaning individuals who go back to listen to an older episode will still hear your ad.
- Dynamic ads are inserted into chosen ad spots (pre-, mid-, or post-roll) and can be targeted to a desired audience at any chosen time. Podcasters can also keep their advertising up-to-date, allowing them to monetize older podcasts with new ads.
The world is listening. The question is: are they listening to you, or your competitors?
Make your brand heard with IAS
Let IAS help ensure your audio ad spend is heard, measurable, and transparent with industry-leading media quality measurement for digital audio — including podcasts.
When you measure your podcast ads with IAS, you can:
- Validate your campaigns using trusted third-party reporting and analysis for audio campaigns compliant to MRC standards
- Access actionable insights such as audible rate, audible impressions, invalid traffic rate, and more
- Receive a holistic view of performance with support across formats, globally
Ready to drive superior results in podcasting? Contact us today and let’s protect your brand and ensure your audio ads resonate with real people.
