If you love listening to podcasts, you’ve probably heard ads for brands you didn’t know before but now recognize. Companies like Casper and Audible started as small businesses and became well-known through smart podcast advertising. These brands were just starting out when they began promoting themselves on podcasts, and they have grown a lot since then.
If you don’t have a lot of money for regular ads, podcast advertising could be a good option for you. Let’s look at why this type of advertising works well for small businesses and how to get started.
What Is Podcast Advertising?
Podcast advertising is when businesses pay to promote their products or services during a podcast episode. There are different ways to do this, such as pre-recorded ads, messages read by the podcast host, or even special episodes just for a brand.
With over 3 million podcasts available on various topics, there’s likely a podcast that fits your business. This makes podcast ads a popular choice for reaching new customers.
Why Is Podcast Advertising Effective?
Podcast ads can reach people no matter where they are — driving, exercising, studying, or cooking. Listeners have many chances throughout the day to hear these ads, which can be more effective than visual ads that need a screen.
Traditional radio ads are limited to certain times and places, while digital audio offers more flexibility. With more devices available for listening than just car radios, there are more ways to connect with audiences.
Podcast advertising allows you to target specific groups based on their activities and interests. As people get tired of looking at screens, audio advertisements can feel refreshing and leave a lasting impression on listeners.
The Benefits of Podcast Advertising
Podcast listening has grown quickly, with the number of US listeners expected to reach 114.7 million by 2025 and over 500 million worldwide. Podcasting has become very popular, giving advertisers a chance to reach audiences in all industries and sizes.
Let’s look at how effective is podcast advertising and why advertisers should keep investing:
Podcast Advertising is a Marketing Multiplier
Adding podcasts to your marketing strategy doesn’t mean you have to stop using other channels. In fact, research shows that including audio advertisements improves results across the board.
Studies found that podcasts work really well with other types of media by reaching young and engaged listeners. Most marketers believe that adding podcasts boosts campaign effectiveness by 20-40% when combined with other media.
Researchers also examined how audio ads work as part of a larger media strategy and found that adding podcasts maximizes the overall success of an advertising campaign. Their study showed that when podcasts were included with a radio campaign, the response saying “it tells me something new about the brand” increased by 30%.
Incremental Reach
Incremental reach means the new audience you can connect with through podcast ads, in addition to the people you reach with other ads like TV and radio. This is important for growing your business because if you want to increase your sales, you need to bring in new customers at the top of your marketing funnel.
Podcasting is attracting a younger crowd that is moving away from traditional media. If you want to reach this group while advertising on TV or radio, podcast ads can help you avoid overlapping audiences and make better use of your budget.
Build Brand Trust
Podcast advertising, especially when hosts read the ads, feels like a recommendation from a good friend. This happens because listeners build a special connection with podcast hosts. When people listen to their favorite shows week after week, they develop a bond similar to friendship.
A recent study showed that around 60% of podcast listeners look for their favorite podcasters and make time for their shows—more than any other type of media personality. This makes podcast listening very engaging and purposeful.
Low-Barrier to High-Profiles
Building on the previous point, audio advertisement gives you easy access to well-known names in various fields like entertainment, health, history, and culture. With podcasting, businesses can work with big names in different industries. These audio partnerships can provide similar or even higher engagement for a much lower podcast advertising cost than TV ads, allowing you to place your brand in the right niche.
Reach Audiences Away from Their Screens
Unlike many other digital ads — like TV, social media, or display ads — podcast advertising has a special advantage: it reaches people when they are not looking at screens.
Audio ads are not intrusive but still grab attention; they are subtle yet effective. This lets advertisers talk to their target audience during moments when they are not distracted by screens. The best part? The listener is already engaged because they chose to listen.
Why Advertise on Podcasts?
The IAB’s U.S. Podcast Revenue study shows that podcast advertising is expected to reach over $2 billion by 2026. Also, data from Edison Research reveals that over 40% of Americans aged 12 and older listen to podcasts at least once a month. The number of listeners has been going up since 2014, with just a small drop in 2022. With these figures, it’s clear that podcasts are becoming more popular and can greatly influence what people buy.
Who Can Benefit From Podcast Ads?
You might think that only big companies or brands that sell directly to consumers can advertise on podcasts, but that’s not true. As technology has improved, podcast ads have become available for all kinds of businesses, groups, and individuals.
Brands of All Sizes and Industries
Podcast ads and sponsorships give brands a chance to connect with an interested and engaged audience, no matter how big or small the business is. For startups, advertising on podcasts can help them stand out. It allows them to choose specific podcasts that reach niche audiences who might be interested in their products or services. For larger companies, podcasting provides a wide reach to many different audiences. Whether you want to create awareness for a new product or increase sales for a software service, there is a podcast advertising strategy that can help you achieve your goals.
Media Agencies
Media agencies gain a lot from podcast ads by helping their clients get noticed and engaged. They design special advertising plans, create interesting content, and use data to improve campaigns. Working with different podcast networks lets agencies find good spots for ads, making sure their clients reach the right audiences and see real results.
Influencers and Content Creators
Just like podcasters, podcast advertising is a great way for influencers and content creators to reach a loyal audience that shares similar interests. This approach can lead to more brand deals and sponsorships, as well as higher engagement on their other social media platforms.
Podcasters
Using podcast advertising in your marketing plan can boost your growth if you have a podcast. It’s clear that the best way to reach podcast listeners is through audio ads, making it an ideal way to introduce your show to new listeners. You can connect with your ideal audience more effectively by targeting shows with similar topics.
Types of Podcast Ads
When you plan to buy podcast ads, it’s important to choose the right ad types and where to place them. The ad formats refer to how the ads are made and how listeners experience them. Ad placements refer to when the ads are played during an episode.
Here are the types of podcast ads you should know:
Live Host-Read Ads
Live host-read ads are messages that the podcast host reads aloud in a friendly way during an episode. These ads can be placed at different times in the show, but they usually come at the start (pre-roll) or in the middle (mid-roll). These ads become a permanent part of the show’s content.
Pre-Produced Host-Read Ads
Pre-produced host-read ads are also read by the podcast host, but they are recorded ahead of time instead of being done live. These ads can be played at the beginning or middle of the episode. One advantage of these ads is that they can be added or changed easily based on what the advertisers want.
Pre-Produced Voice-Over Ads
Pre-produced voice-over ads are made in advance, similar to traditional advertising. In this case, a voice actor reads the ad instead of the podcast host. The final ad is given to the media owner for use in the podcast.
How Can Podcast Ads Be Inserted?
When it comes to placing ads in podcasts, there are two main methods: “Baked-in” Ads and Dynamic Ad Insertion.
Baked-in Ads
Baked-in ads are permanently included in the audio file. This means that every listener will hear the same ad when they tune into that episode. These ads can be inserted at any point during the podcast.
Dynamic Ad Insertion
Dynamic Ad Insertion works differently. It allows ads to be placed in specific spots that can be tailored to the listener. This approach helps advertisers reach their target audience more effectively and at the right moment. Additionally, it allows podcasters to keep their advertising current, enabling them to generate revenue from older episodes as well.
Where to Buy Podcast Advertising?
If you want to use podcast advertising, you need to know how to create a campaign. You can buy podcast advertising from us at RedTrack. Our service is easy to use, letting you create and manage your podcast ad campaigns without any hassle. You will have access to many different podcasts, so you can reach the right audience for your brand.
We provide helpful information about how your ads are doing, which helps you improve your campaigns for better results. With our tools, you can track your ads and change your plans easily. This way, you can connect with listeners and grow your business effectively.
How to Measure Podcast Advertising Effectiveness
If you’re new to podcast advertising, you might use the same metrics as paid search and social media, like CTR or CPC. However, podcasting is different because it’s audio-based and doesn’t use cookies. The audience listens instead of scrolling or clicking.
So to check your podcast advertising effectiveness, start by measuring reach, which is the number of unique listeners who heard your ad at least once. This is key for brand awareness. Look for accurate reach data, like that from RedTrack.
To track results from your ads, consider using promo codes, pixel-based tracking, vanity URLs, or surveys. A clear call to action is important to guide listeners to your website.
Conclusion
Podcast advertising is an effective way to find new customers and enhance your brand. Tapping into this popular medium can help you engage with interested listeners and create a strong impression.
You can start your podcast advertising campaign with RedTrack today by reaching out to us. We’ll help you to create your first podcast ad campaign using our easy podcast advertising platforms. Contact us today to learn more ways to promote your business!
