Getting the Most Out of Podcast Advertising
Podcasting is growing into a powerful messaging platform for individuals and businesses to communicate with targeted podcast audiences, sometimes talking about very niche topics that would never get attention from traditional media sources.
B2B podcasting is growing just as fast, if not faster, and podcast advertising has become an important tool for generating revenue. It is estimated that in 2023, podcast advertising revenue will exceed $2 billion, and that will jump to $3 billion by 2025.
Granted, the high-dollar advertising is going to the major podcasts, often hosted by household-name celebrities, but there is room to generate a decent amount of revenue with a B2B podcast, even for a small business or start up. That revenue can help cover the production costs associated with putting a podcast together and ready for publication.
Podcast advertising is shown to be effective for brands. According to Semrush, more than 60% of listeners say they have searched for a product or service after hearing an advertisement on a podcast.
What’s more, 78% of listeners approve of podcast ads and they expect to hear them, according to CNBC. Because of the niche topics covered by most podcasts, especially B2B podcasts, the ROI of podcast advertising is much higher than radio or television ads.
When done strategically, podcast advertising works. Don't just advertise on your favorite podcasts or podcasts that align with your own personal experiences. Think about your goals for buying that ad space and find podcasts that are going to talk to the niche audience you are trying to attract.
Podcast Advertising Basics
Podcast advertising is like radio or television advertising. Companies buy time on a podcast to promote their goods or services. The format of the ads can vary, but the two most common types are produced, pre-recorded ads and host-read ads.
Pre-recorded ads generally have a more traditional sound and feel, and they are something listeners are used to hearing. These spots can also have various production layers, such as music, sound effects and multiple voices.
Host-read podcast ads give a more down-to-earth feel to the spot. Podcast hosts can read the ad entirely from a script or they can ad lib a little to make the ad different and fresh each time the listener hears it.
Advertising on ad networks is a type of podcast advertising that is very similar to the traditional model ad agencies have been using for decades. Basically, you buy ad space and the agencies distribute your ads across various outlets.
Working with this same model, Listen Network built an ads platform specifically for podcast advertising. Unlike standard podcast ad models, Listen Network guarantees you only pay for verified listens - not impressions. This means you pay when a listener engages with your content for 60 seconds or more, the industry standard set by the IAB (Interactive Advertising Bureau) Tech Lab. No more wasting budget on skipped ads. With Listen Network, you could target keywords like "subscription box" without wasted spend. Your ad won't appear on unrelated content just because it mentions "subscriptions."
There are plenty of ways to advertise your B2B podcast out there based on your goals and requirements.
Sponsorship is another type of podcast advertising, which is common in the B2B podcast space. Usually a sponsorship involves putting the company name in the title of the podcast, often as a tagline. For example, you might have The Ice Cream Podcast Powered by the Tasty Ice Cream company. This tactic is used by many of our clients at Content Allies, a leading global B2B podcast production and strategy company.
It’s obvious why this type of advertising is common in B2B podcasting, as the podcast itself is produced by a business. Though some companies don’t sponsor their own show because they want to distance the company from the podcast and host to give it a more grass-roots feel.
The Powerful Effectiveness of Podcast Ads
One reason B2B podcast ads are so effective is because their target audience are naturally interested in a company’s goods or services based on the focus of the show. If your show is about topics that are of interest to your potential customer base, your podcast ads are much more likely to convert podcast listeners into a lead or create a sale than a traditional mass media branding advertisement.
According to a report by Edison Research, nearly half of all the listeners surveyed said their opinion of a company is more positive when the company advertises on a podcast they listen to on a regular basis.
The poll also shows that listeners are more likely to buy products from companies who advertise on podcasts they listen to when price and quality are equal to competing products.
Podcast Advertising Basic Terminology
If you’re thinking about running podcast advertising or sponsoring a podcast, you need to know the lingo. Many of these terms are the same as traditional advertising:
CPM - A standard advertising term that refers to a cost model for a company to get 1,000 impressions (listens in podcasting) on an ad. CPM is an acronym for “cost per mille.” Mille is the Latin word for 1,000.
CPA - This is an acronym for cost per acquisition, or how much money it costs for an ad to generate one customer acquisition for a company.
Dynamic Ad Insertion - Allows your ad to be inserted into an existing podcast depending on different parameters you might choose. For example, your company may be regional, and with dynamic insertion you can have your dynamic ads play for listeners in a specified geographic area.
Targeted Ads - Ads that are targeted to specific listeners who are most interested in what the advertiser is selling.
Pre-roll Ad - An ad placed before the start of the actual podcast.
Mid-Roll Ad - An ad placed sometime during the podcast episode.
Post-Roll Ad - An ad placed at the end of the podcast episode.
Host-Read Ad - An ad or sponsor plug in the voice of the host of the show.
Live-Read Ad - An ad that is read live during a podcast episode. These are usually host read, but they may not be strictly scripted and cannot use dynamic insertion.
CTA - An acronym for call to action. This might be to ask a listener to go to a website or call a phone number or some other kind of direct response.
Brand Awareness Ad - This is an ad that simply provides exposure for a company, also known as branding.
Show Notes - This is a summary of what the podcast is about that appears on the podcast directories. Some shows will mention the sponsor of the podcast in the show notes.
Alternative Types of Podcast Advertising
In addition to baked-in ads like host-read spots, pre-, mid- and post-roll ads, and sponsorships, there are some creative ways to get impressions for your brand, goods or services through paid partnerships with podcasts.
Product Placement
Paid product placement in a podcast can be effective for the right brands or products. A drink company or a packaged food brand can pay podcasters to have their product visible and consumed by the host and/or guest during the recording of the interview.
Of course, this is only effective in the video version of the show, but part of the deal could also be for the host or guest to casually mention the product in a way that doesn’t sound like a plug or endorsement during the episode.
Paid Appearances
Instead of merely having a product visible on a show, companies can pay for people to come on the show to be interviewed as a guest. It is important that the paid interview guest and the topic discussed are relevant to the overall theme of the show to maintain credibility and trust with the audience.
In B2B podcasting, this can be an effective approach for companies to get their message on larger podcasts that are relevant to the industry they are in. On smaller B2B podcasts, a company can often gets a guest spot by simply asking to be on the show, but bigger shows may be booked well in advance. In that case, a paid appearance may be a great way to get on.
Podcast Advertising Cost and Rates
The cost to advertise on or sponsor a podcast will vary wildly depending on the popularity of the show. While the advertising rate will change, the formula and structure comes down to two main models: fixed price and CPM.
A fixed price ad is simple. The podcaster names a price and terms and the advertiser pays that price. Factors such as ad length, size of the audience and time of year the show will be released (a spot on a toy industry podcast may cost more during the holiday season) can all be a factor.
The CPM model charges a fixed rate for every 1,000 plays or downloads. The definition of a download will vary and the industry has yet to come to a consensus on what it is. For example Spotify may consider a listen to have lasted at least 60 seconds, while Google Podcasts considers a listen to have lasted five seconds.
The fixed price model is a good choice for podcasts with a large, established audience because it takes the vague nature of the definition of a listen out of the equation.
What Shows Should You Choose to Sponsor
For your podcast sponsorship to be effective and successful, you need to choose shows that are relevant to your business. If the audience doesn’t need your product or service, your sponsorship probably won’t move the needle on sales or attracting first-time buyers.
Check Your Competition
Look at the shows that your competitors are sponsoring and break down the effectiveness of their sponsorships. Then you can look for other shows in the same niche that they are not sponsoring for your own sponsorship.
Keep an eye out for those competitor sponsorships to end. Contract lengths vary, and when a sponsorship contract comes up for renewal, your competitor may not want to continue. This can be an opportunity to step in and fill that void.
Vet The Show Thoroughly
Before you shell out your money for an audio ad or sponsorship, make sure you’re working with a well-run podcast that has a professional approach. Go back through their past shows and check that they publish on a regular schedule. Throw up a red flag on a show that publishes weekly for a couple of months then goes dark for weeks at a time. Ideally, a show will publish weekly, twice a month or monthly.
Also, keep an eye out for dishonest podcasters. B2B podcasting is still in the Wild West stage, and there are some podcasters who are riding the wave just to make a quick buck. It is always a good idea to check their social media to make sure they actively promote the show. For B2B podcasting, an active LinkedIn presence is a good sign. But there are other platforms that may be popular in certain industries, like Twitter and TikTok. The more platforms the show and the host are active on, the more likely your ads will be reaching the right audience.
Consider Sponsoring a Back Catalog
If there are shows in your niche or industry that have a back catalog of episodes that have already aired, there might be an opportunity for a sponsorship deal that is less expensive than sponsoring future shows. If the podcast content is evergreen and the episodes are still being shared and listened to, this is often the most efficient way to get a good bang for your advertising buck.
Obviously, volatile industries like crypto or cybersecurity and other tech may not be a good choice because episodes from last year, or even last month, can become irrelevant quickly.
B2B podcasting is booming right now and the possibilities for advertising and sponsorship are changing and evolving with the industry. Use your imagination, be creative and get your product or service attached to shows in your niche or network. It can pay off for savvy marketers in both brand awareness and directly in sales.