Podcast Advertising: The Ultimate Guide [2025]
If you've landed on this article, chances are that you’re interested in podcast advertising. And why wouldn’t you be: podcast advertising works. Whether you’re looking for bang for your buck, listener attention, or to follow in the footsteps of household-name brands, podcast ads can deliver real impact for businesses of all sizes.
Acast is the world’s leading podcast marketplace hosting more than 100,000 podcasts and working with 2,700 advertisers, so we want to share our expertise with brands and marketers looking to add podcasting to their marketing strategy.
The ultimate guide to podcast advertising is the perfect introduction and ongoing guide to knowing everything you need to know about running podcast ads.
What is Podcast Advertising?
Podcast advertising is a type of paid marketing that takes place within a podcast episode. There are different podcast ad formats, from pre-recorded ads, host-read sponsorships read by the podcast host, and longer-form branded episodes or even entire series.
There are over 3.2 million podcasts out there covering every topic, interest, and passion under the sun—meaning there’s a relevant podcast audience for every kind of business to reach through podcast ads, so it’s becoming an increasingly popular way for companies to reach customers.
The Benefits of Podcast Advertising
Podcast consumption has rapidly increased over time, with expected worldwide listeners to reach 504.9 million by 2024. The medium of podcasting has truly hit the mainstream, meaning there’s reach to be enjoyed by ad buyers for brands of all industries and sizes. According to Insider Intelligence, podcast ad spend is expected to grow to $3.53 billion by 2026.
Let’s break down the key benefits of podcast advertising, and why advertisers should continue to invest:
Incremental Reach
Incremental reach refers to the unique audience that you can reach with podcast ads, in addition to the people you’re reaching through other advertising channels such as TV and radio. This is critical for growth marketing because if you’re looking to scale your conversions, you need to replenish the top of your marketing funnel with new customers to convert.
A recent study by Sounds Profitable found that among the 25-54-year-old age group podcasting extends the reach of weekly radio listeners by 12% and 15% of television viewers. This is even greater among the 18-34 age group, where podcasting reaches a significant 18% of those who don’t listen to radio and 19% of those who don’t watch traditional broadcast TV.
Podcasting is reaching a younger audience that is increasingly retreating from traditional broadcast media, so if you’re targeting this demographic and advertising on broadcast, podcast ads can avoid a duplicative audience buying and maximize budget efficiency.
Podcast Advertising is a Marketing Multiplier
Adding podcasts to your media mix doesn’t mean dropping other channels. In fact, studies show that the addition of podcast advertising to your marketing mix improves performance across the board.
Acast surveyed marketers and discovered that podcasts pair fantastically well with other forms of media by reaching young and engaged audiences. In combination with most media, most marketers say that podcasts improve campaign effectiveness by 21-40%.
The Guardian also looked at the compounding effect of podcast ads as part of a media mix and found that the overall effectiveness of an advertising campaign is maximized by adding podcasts. Their study showed that the response to marketing campaigns of “it tells me something new about the brand” increased by 34% when podcasts were added alongside a radio campaign.
They also found that combined with digital display advertising, podcast advertising makes campaigns more memorable and trustworthy, with the data showing trust levels increasing from 45% to 63% when podcasts are added to the media mix.
Podcast advertising is fuel to the flames of marketing success.
Build Brand Trust
We like to think podcast advertising, especially host-read sponsorships, is like a recommendation from a trusted friend. That’s because of the unique parasocial relationship between listener and podcast host, with listeners who spend week after week listening to their favorite shows developing a bond similar to a real-life friendship.
A recent study from Acast looked into the trustworthiness of media personalities among US consumers, and found that 64% of podcast listeners actively seek out podcasters and create time for their content—the most of any other tested media personality—making the time spent with podcasts highly engaging and intentional.
For advertisers, podcast advertising offers a way to tap into these relationships and benefit from a halo effect that builds trust with your brand.
Further supporting this is our study with Nielsen, where 63% of respondents said the hosts of the podcasts they listen to are trustworthy, and 80% said they trust recommendations from hosts they currently listen to.
Low-Barrier to High-Profiles
Leading on nicely from the previous reason is the unparalleled access to the biggest names in podcasting, who are also the biggest names in their chosen field. Whether that’s entertainment, health & wellness, history, culture and arts, and much more.
Podcast advertising is a media channel where businesses can work with high-profile names such as Peter Crouch, Anna Faris, and Marc Maron easier than ever—as well as respected publishers such as the BBC, Economist, and The Guardian.
These audio partnerships offer the same, if not higher, engagement for budgets much lower compared to TV spots, and allow you to position your brand within exactly the right niche.
Reach Audiences Away From Their Screens
Unlike most other forms of digital advertising—TV, social media, display—podcast advertising has a unique characteristic: it reaches audiences when they are not glued to their screens.
Picture this: an office-goer is stuck in traffic, their phone is connected to the car stereo, listening to their daily news podcast. Or consider someone running on a treadmill, breaking a sweat while they tune into their favorite podcast. Even for someone doing chores or running errands, podcasts are their constant companion. These are moments when traditional digital ads would miss the mark, but podcast ads hit right on target.
Through Acast, you’re able to reach listeners no matter which app they choose to use; including Apple Podcasts and Spotify.
Podcast ads are non-intrusive yet attention-grabbing, it's subtle yet impactful. It gives advertisers the power to communicate with their target audience during those off-screen moments that were previously inaccessible. And the best part? The listener is already engaged, already attentive because they have chosen to tune in.
Creative Freedom
Podcast advertising offers an avenue for creativity for brands that they can’t achieve in other mediums. Unlike standard radio or TV spots, podcast advertisements can be crafted to seamlessly fit into the podcast episode, allowing marketers to weave their brand's narrative into the podcast's storyline. This integration provides an opportunity for brands to create more engaging, memorable, and impactful ads that resonate with listeners.
Moreover, host-read sponsorships are a popular format in podcast advertising where the host personally endorses a product or service. This format is particularly potent as it allows the host to infuse their personality, authenticity, and credibility into the advertisement. Listeners often view podcast hosts as trusted figures and are therefore more likely to be receptive and responsive to their endorsements.
The Effectiveness of Podcast Advertising
We’ve collated the most important learnings we’ve found while working with our research partners to outline why podcast advertising is one of the most effective channels for brands and advertisers:
1. Podcast advertising gets attention
The level of attention podcasts attract is even more impressive when you compare it to another, more traditional audio medium: radio. In our research with Mumbrella, respondents said radio is more likely than podcasts to be listened to as “background noise”, while podcast listeners are more likely than radio listeners to actively try to reduce distractions before hitting ‘play’.
It’s the same in some of the other traditional mediums too. While many consumers face ad fatigue across music streaming and television, the same can’t be said for podcasts. The same report from CUMULUS MEDIA found that, of 10 tested advertising mediums, podcasts were the one where consumers were least likely to avoid ads.
In Acast’s research with Nielsen, 60% of listeners said they pay attention to the ads in a podcast, and 25% said they pay attention to every or most of the podcast advertising they hear. Podcasts also rank second — and first versus all other forms of audio — when it comes to how immersed listeners are when engaging with the medium, showing the engagement, attention, and focus this medium can bring.
In a further study conducted by Acast, it was revealed that 98% of marketers for Direct-to-Consumer brands said podcasts are effective in reaching consumers, meaning podcasts are the most effective audio medium to reach DTC shoppers.
2. Podcast advertising motivates people to take action
Podcasts offer advertisers one of the most engaged audiences available, and we have the data to prove it. Key takeaways of our research with Nielsen highlighted that there was a significant increase in the number of listeners taking action after hearing an ad:
- 30 million visited a website for more information after the product was advertised, up 32% vs 2019
- 17 million visited a website to purchase or order a product advertised, up 44% vs 2019
- 1.3 million called a telephone number provided in an ad, up 25% vs 2019
- 4 million visited a retail location to get more information about a product advertised, up 14% vs 2019
- 4 million visited a retail location to purchase a product advertised, up 36% vs 2019
3. Podcast advertising is a trusted medium
Luckily for advertisers, podcast advertising is considered more trusted than other media channels. A Magna Global study illustrated that 48% of UK listeners said they trust podcast hosts more than hosts of other traditional media, including radio or TV shows. A recent Guardian study also found that trust levels increased from 45% to 63% when podcasts were added to a brand’s media mix.
One of the most important learnings from our research with Nielsen is just how much our listeners trust podcast advertising. 63% of respondents said the host of the podcasts they listen to are trustworthy, and 80% said they trust recommendations from hosts they currently listen to.
In fact, podcast hosts are almost as trusted for recommendations as family (85%) and friends (84%) — that’s understandable, because podcast hosts build authentic relationships with their listeners over weeks, months, or even years of weekly episodes.
YouGov research also found that UK listeners are more likely to “feel deeply connected” to a brand when they can hear “a voice” — and, more specifically, their favorite host’s. Brands should tap into this ready-made authenticity and trust, to help consumers further connect with their brand.
Why advertise on podcasts?
Who Can Benefit From Podcast Ads?
You may think you need to be an established business or a consumer-facing-only brand to even start thinking about advertising on podcasts, but that’s not the case. As the medium has grown with new technology available, podcast ads are accessible to all types of businesses, organizations, and people.
Brands of all sizes and industries
Podcast ads and Sponsorships offer the opportunity for brands to connect with an attentive and engaged audience no matter the size of the business.
For startups, advertising through podcasts can prove to be a differentiator as it allows them to target the right podcasts to reach niche audiences that may be interested in their products or services. Podcast ad campaigns don’t require huge budgets either, with campaigns using Acast’s self-serve platform starting from $250.
For larger enterprises, podcasting offers extensive reach to all types of audiences. Whether you’re looking to generate large-scale brand awareness for a new product launch or drive conversions for a SaaS platform, there’s a podcast advertising strategy that can deliver results.
Media Agencies
If you work for a media agency, podcast advertising can put your clients at the heart of the conversation. No matter who your client is, Acast has millions of listeners across over a hundred thousand shows, which means there’s a perfect audience for every business. There are many targeting options available to reach audiences, from interest targeting to first-party data integration, podcast ads allow you to target the right people, at the right time. There are also programmatic buying routes, and Acast works with all the major Demand-Side Platforms. Acast also offers robust measurement capabilities, from pixel-based attribution to track visits and conversations, to in-depth brand studies to understand the impact of campaigns.
Podcasters
If you are a podcaster, utilizing podcast advertising within your promotion strategy can supercharge your growth. It makes sense that the best way to reach podcast listeners is through podcast advertising, so there’s no better place to introduce your show to potential new listeners, and by targeting shows with similar interests, you can drill down into your perfect audience.
Influencers and content creators
Similarly to podcasters, podcast advertising can be a valuable tool for influencers and other content creators to connect with a devoted and engaged audience who share an interest in passion or content themes. This strategy can lead to more brand partnerships and sponsorships and increased engagement on their other platforms
Podcast Advertising Formats and Placements Explained
Types of podcast ads
Podcasting offers various ad placements and formats. There are three main advertising formats in podcast advertising - host-read sponsorships, pre-recorded ads and branded content.
Host-read sponsorships (also known as host-read ads, sponsor reads, or sponsorships)
Host-read Sponsorships are longer, editorialized commercial messages delivered by the podcasters themselves. Brands and advertisers can work with podcast hosts ranging from household names to niche influencers, to deliver native, creative, and authentic audio advertising. You may also hear these referred to as ‘live-reads’.
Sponsorships are typically a 60-second ad but can run to a couple of minutes in length, and pricing terms have a higher CPM. Acast’s podcast network has over 100,000 shows to choose from, so there’s a perfect audience for every advertiser.
Sponsorships sound like an organic part of a podcast, where the podcaster puts your messaging brief into their own words and style which makes for an improved listening experience for the podcast’s audience—making them more likely to be engaged with the products or services they’re talking about. They are typically recorded by the host of the show and seamlessly fit into the episodes.
Pre-recorded ads (also known as announcer-read ads or pre-produced ads)
Pre-recorded podcast ads are commercial messages supplied by the advertiser, usually featuring a voice-over artist and not a podcast host. Acast often refers to these simply as ‘audio ads’ or just ‘ads’, but you might also hear these referred to as announcer-read or pre-produced ads.
Pre-recorded ads offer meaningful reach at scale, that can be bought through Acast's self-serve platform, through our ad sales team, and programmatic .
Ads typically run for 15-30 (30-second ad max) seconds and the audio file for the ad is provided by the advertiser or agency. Advertisers also have the option of working with Acast’s in-house creative team to make an audio ad that cuts through.
Pre-recorded ads are dynamically inserted into podcast shows using a set of criteria called targeting. Targeting includes criteria such as campaign dates, geographic location, podcast categories, and audience demographics; which you set up before launching a campaign to determine which listeners should hear your ad or not.
Ads can be placed into podcast episodes during pre-roll, mid-roll, and post-roll ad slots.
Branded content
Branded content isn’t as common as ads or host-read sponsorships, but it’s still a growing and effective ad format in podcast marketing. Branded content integrates promotional or advertising messaging within the editorial content of podcasts, either as a branded segment, or branded episode, and you can even have an entire branded podcast series.
Branded content is effective as it aligns the advertisers’ products or services with the podcast’s content and the interests of the host, creating an entertaining listener experience for the audience. It’s specifically designed to be informative, engaging, and entertaining, seamlessly blending promotional messages with the overall podcast experience. This allows brands to reach their target audience in an authentic and non-intrusive manner, enhancing brand awareness and customer engagement.
There’s also opportunities to extend the podcast campaign beyond the podcast itself, such as events or social promotion on platforms like Instagram, LinkedIn and YouTube.
How can podcast ads be inserted?
When it comes to ad placement, there are two methods used to fill the ad slots in an episode - ads can either be “baked-in” or automatically inserted using a technology called Dynamic Ad Insertion:
Baked-in ads
Baked-in ads are added to the audio file itself, making them permanent - that means that all listeners will hear the same ad when they listen to the episode. These can appear anywhere in an episode.
Dynamic ad insertion
On the other hand, dynamic ad insertion stitches ads into chosen ad spots (pre, mid, or post-roll) which can be targeted to the person listening. This allows advertisers to get more value as their ads are heard by their target audience at the right time. It also allows podcasters to keep the advertising on their shows fresh, helping them to monetize their back catalogs.
Here at Acast, our podcast advertising campaigns are focused on using dynamic ad insertion, so we can maximize the effectiveness of our client’s campaigns, and provide a better listening experience for our show’s audience. Say goodbye to out-of-date ads in a podcast’s back catalog.
We’ve written an article around the benefits of dynamic ad insertion which you can read here.
One of the reasons why podcast advertising is so effective is that podcast listeners can be reached across many different platforms. Once your ad is added to an episode, it can be heard on podcast apps like Spotify, Apple Podcasts, Google Podcasts, Amazon Music, Audible, and many others. Acast supports the open ecosystem of podcasting, which means our podcast network can be heard across every listening app, and the same goes for our advertiser’s commercial messages.
There is also the opportunity to target contextually, as customers are moving more and more towards craving a more personalized approach to their marketing. Using our conversational targeting, advertisers can match brands within our podcast category collections or identify specific episodes they want to insert themselves into using our IAB episode targeting, inserting an ad within relevant topics or conversations. If you want to know more about the offering, take a look at this blog post breaking it down even further
Where are podcast ads placed in episodes?
Now you know what the different ad formats are, we’ll explain where these ads will be heard when a listener hits play on a podcast episode. These are collectively known as ad spots or ad spaces, and they come in three variations detailed below. Note: we give our podcasters the ability to choose exactly where these ad spots take place, ensuring a smooth listening experience for listeners.
Pre-Roll Ads
Pre-roll ads usually play at the start of episodes but can be moved up to 25% at the start of the episode by the podcaster. Pre-rolls are considered effective as while people may still be closer to their device after hitting play, there’s a good chance they will just let the ad play since it is leading up to the episode.
Mid-Roll Ads
Mid-roll ads can be placed in any episode that is at least 10 minutes in length or longer (this is to avoid ad fatigue on short episodes for listeners). This is the most lucrative ad spot, mid-roll advertisements have the best position because they are placed in the middle of an episode. During this time, listeners are often engaged in activities such as working out or doing the dishes, which makes them less likely to skip through the ad content.
Post-roll Ads
Post-roll ads play at the end of podcast episodes but can be moved up to 50% from the end of the episode by the podcaster. Post-roll advertisements are seen as the lowest value because many listeners tend to stop listening to the show when the episode ends, especially if they are only listening to a single episode. However, post-rolls still can be effective as people often have their hands full with their activities while listening to the podcast. They prefer to let the ad play and have the next podcast episode start automatically rather than skipping.
What can you buy with Acast?
Where to buy podcast advertising?
If you’re ready to take advantage of this medium, you’ll need to know how to set up a campaign. Here are the main routes for buying podcast advertising:
Acast’s self-serve platform
This is by far the easiest and fastest way to buy podcast advertising. You can run pre-recorded ad campaigns and host-read sponsorship campaigns from the same platform. Set up a campaign that runs across multiple shows with the option to target your audience by gender, age, location, Nielsen Audience Segments, and other demographic categories.
Unlike working with sales reps or the podcaster directly, the self-serve platform does not involve any back and forth or negotiating CPMs with multiple shows - it's a fully automated solution and available at any budget level, with campaigns starting at $250. You can read more about Acast’s self-serve podcast advertising platform here.
Advertisers are often tempted to purchase show-by-show basis, looking at a small pool of top-ranked shows with a large number of listens and downloads. In the US, for example, this results in about 44% of advertising dollars going to the top 500 shows- but those shows only reach 12% of the total podcast audience. That means advertisers are missing out on reaching 88% of podcast listeners. That’s why Acast recommends purchasing advertising based on the audience you want to reach, rather than on a show-by-show basis. Mid-sized and smaller shows with niche audiences can offer advertisers the reach they need but at much more affordable pricing.
Getting started with Acast's self-serve ad platform
Through podcast advertising networks
The most popular podcasts are often represented by a podcast network that has a dedicated sales team, like Acast or AdvertiseCast. Working directly with a podcast network’s sales team can deliver bespoke campaigns that include a custom selection of shows, a combination of ad formats of sponsorship, ads, and even branded content. They’ll also provide a PCA (post-campaign analysis) to report on the results of the campaign. These campaigns can require budgets to be a minimum of $10,000-$15,000, although this can vary.
Directly through the podcaster
Successful podcast creators, usually smaller and mid-sized podcasters, are very open to working directly with advertisers. If these shows are not part of an ad network, advertisers will likely only be able to purchase host-read sponsorships, and often these will be baked-in rather than dynamically inserted. With millions of podcasts available, it can be tough to find shows that are the perfect fit. Platforms such as Podchaser offer excellent tools to help brands identify the best podcasts to work with.
Create an Affiliate or Commission Scheme
An affiliate or commission scheme in podcast advertising is a way for advertisers to pay or incentivize podcasters to promote their products or services. When a podcaster participates in an affiliate scheme, they receive a unique link or promo code that they can share with their listeners. If someone from the audience clicks on the link or uses the code to make a purchase, the podcaster earns a commission or a percentage of the sale. This allows podcasters to monetize their content and earn income based on their ability to drive sales or conversions. It's a win-win situation where advertisers only pay for the conversions they want.
How much does podcast advertising cost?
Understanding the costs of a podcast advertising campaign can be confusing, especially when you’re new to podcast advertising. If you want the “TL;DR” (too long, didn’t read):
The average CPM (cost per mille/1000 listens) of podcast ads is between $15 to $30 for pre-recorded ads up to 60 seconds. Host-read sponsorships can cost between $25 to $40 CPM.
Ultimately, podcast advertising rates vary based on the type of ad, audience size, targeting criteria, and other factors.
What Are the Types of Cost Models?
Commonly, podcast advertising is sold to advertisers in two main ways which are by CPM and CPA. There’s also the option buy at a flat rate. We’ll explain what these are and how they work.
CPM
Podcast advertising is most often sold on a CPM (cost per mille) basis, which means costs per a thousand impressions. In podcasting specifically, it means the advertiser will pay a set price per 1000 ads served. So the cost of a podcast advertising campaign depends on the number of downloads or listens you’ve booked for your advert to be heard.
Podcast advertising rates vary, so while host-read sponsorships and regular ads are priced by CPMs, various formats, and placements have different CPMs based on their value and effectiveness.
Podchaser detailed average podcast advertising rates for host-read slots as follows:
- Podcast Pre-roll Ad CPM
- The average 15-25 second pre-roll ad spot will have a $15 CPM.
- It’ll cost approximately $1,500 to purchase a pre-roll ad on a podcast that generates 100,000 listens.
- Podcast Mid-roll Ad CPM
- The average 30-60 second mid-roll ad spot will have a $30 CPM.
- It’ll cost approximately $3,000 to purchase a mid-roll ad on a podcast that generates 100,000 listens.
- Podcast Post-roll Ad CPM
- The average 15-25 second post-roll (also known as an “end-roll”) ad spot will have a $10 CPM.
- It’ll cost approximately $1,000 to purchase a post-roll ad on a podcast that generates 100,000 listens.
CPA
A CPA cost model in podcast advertising is a method that determines the pricing structure based on the number of desired actions, such as sign-ups or purchases, rather than the traditional method of paying for impressions or downloads (CPM). With this model, advertisers pay only when listeners take specific actions that align with their marketing goals. This approach allows for better cost control and ensures that advertisers are only paying for the desired outcomes. By focusing on performance-based metrics, the CPA cost model provides a more effective way to measure the success of podcast advertising campaigns.
The CPA model is often used by affiliates and direct response (DR) where unique promo codes used in the campaign can be used to accurately track conversions.
Flat rate
A flat rate cost model is a method of pricing podcast advertising where a fixed fee is charged for a specified duration or number of podcast episodes. This means that advertisers pay a set amount regardless of the number of listens or downloads the podcast receives.
This is very uncommon for established podcasts so usually only applies to niche, smaller shows with a limited but dedicated group of subscribers. Although it’s straightforward for both the advertiser and the podcaster, it lacks transparency of how many impressions the advertiser is paying for.
You can read our full guide to podcast advertising costs and rates in this article.
How to measure podcast advertising effectiveness
If you’re new to podcast advertising, you may be tempted to use the same performance metrics as paid search and social media, such as CTR, CPC, or CPA. But podcasting is a cookieless, audio-based medium that requires a different approach to measurement. The podcast audience is mostly listening, not scrolling or clicking. For a full breakdown of how to measure the impact of podcast advertising, you can take a look at our full article on it here.
So what metrics should you look at?
At the most basic level, start with reach. For podcast ads, reach is defined as the number of unique people who listened to your ad at least once, including streams and downloads. This metric is especially important for brand awareness campaigns, where the goal is to reach as broad an audience as possible. Always look for IAB-valid reach, like the one provided by Acast, to make sure your numbers are accurate.
In this case, reach is similar to what you’ll see with search and social - it’s the summation of how many people were exposed to your ads. Now comes an important part: how to measure results for a call-to-action (CTA).
This is where podcasting’s unique attribution requirements come into play. How you measure attribution depends on the content of your ad and the structure of your funnel. Popular ways to measure podcast advertising include:
- Promo codes, discount codes, and coupon codes: This is often known as “Direct Response” or “DR” for short. This is when your podcast ad or sponsorship mentions a unique code that can be redeemed at checkout, so you can accurately track the purchases and new customers that are a direct result of your podcast ad campaign.
- Pixel-based attribution: If you’re looking to measure cost-per-acquisition (CPA) or return on ad spend (ROAS), you can use 3rd party tracking services that leverage tracking pixels to tell you how many people heard your ad on a podcast that ultimately visited your website, purchased an item or signups for an account. Acast supports 3rd party attribution vendors such as ArtsAI, Podsights, Podscribe, and Claritas. Acast's preferred attribution partner is Podscribe, as we offer our advertisers free tracking using their pixel.
- Vanity URLs: Telling listeners to visit a unique URL or landing page (that you are only using for podcast ads). Just make sure the URL is short and easy to both pronounce and remember. You can spell out potentially confusing words in your ad read to make sure.
- Surveys: Adding podcasts to your “How did you hear about us” survey
Remember that since the audience is hearing your podcast ad, a clear & memorable call to action is necessary if you want to bring them into your digital marketing funnel.
Looking for guidance on how to create an audio ad using one or more of the attribution methods above? Check out our guide to creating the perfect audio ad here. Generally, along with strong content and a clear call to action, you’ll also want to make sure your ad sounds great. The higher the quality of your ad—the better the conversion rate.
What conversion rates should you expect?
Podcast listeners are less distracted and more engaged, making them a more receptive audience for advertising. According to the Edison Super Listeners report, podcast ads are the most recalled type of ad – with 86% of respondents saying they remember seeing or hearing a podcast ad. For social media, it was 80% and for websites 79%. So how does this translate metrics-wise?
According to the podcast attribution platform Podsights, the average conversion rate for podcast ads to website visit events is about 1.32% across industries*. If you wanted an equivalent conversion rate for social media, you could compare this to the average click-through-rate for Facebook and Instagram ads, which is currently 0.90%
Using some quick back-of-napkin math, you can estimate the required ad spend and CPC based on these benchmarks. Let’s say you run a podcast ad with 200,000 impressions at a $15 CPM. This works out to be a $3,000 ad spend. If you set your frequency cap to three, this means that about 66,700 unique listeners will hear your ad a maximum of three times. We can use the 1.52% conversion to estimate around 1,014 visitors, which equates to a CPC of $2.95. Keep in mind that this is a very broad estimate and actual performance depends on a mix of factors like creative quality, ad spend, and total unique impressions.
Like any new media channel, you’ll want to test and learn how podcast ads can work for your brand and customers. The good news is that podcast advertising offers something for everyone - whether you’re running a brand awareness or direct response campaign, and whether your budget is $100,000 or $1,000.
Start podcast advertising with Acast today
You can start a podcast ads campaign with Acast today, just head to our website. There you’ll find more information about advertising with Acast, get started building your first podcast ad campaign using our self-serve platform, explore the different podcasts on our network and their listener demographics, or get in touch with us for more details.
If you've landed on this article, chances are that you’re interested in podcast advertising. And why wouldn’t you be: podcast advertising works. Whether you’re looking for bang for your buck, listener attention, or to follow in the footsteps of household-name brands, podcast ads can deliver real impact for businesses of all sizes.
Acast is the world’s leading podcast marketplace hosting more than 100,000 podcasts and working with 2,700 advertisers, so we want to share our expertise with brands and marketers looking to add podcasting to their marketing strategy.
The ultimate guide to podcast advertising is the perfect introduction and ongoing guide to knowing everything you need to know about running podcast ads.
What is Podcast Advertising?
Podcast advertising is a type of paid marketing that takes place within a podcast episode. There are different podcast ad formats, from pre-recorded ads, host-read sponsorships read by the podcast host, and longer-form branded episodes or even entire series.
There are over 3.2 million podcasts out there covering every topic, interest, and passion under the sun—meaning there’s a relevant podcast audience for every kind of business to reach through podcast ads, so it’s becoming an increasingly popular way for companies to reach customers.
The Benefits of Podcast Advertising
Podcast consumption has rapidly increased over time, with expected worldwide listeners to reach 504.9 million by 2024. The medium of podcasting has truly hit the mainstream, meaning there’s reach to be enjoyed by ad buyers for brands of all industries and sizes. According to Insider Intelligence, podcast ad spend is expected to grow to $3.53 billion by 2026.
Let’s break down the key benefits of podcast advertising, and why advertisers should continue to invest:
Incremental Reach
Incremental reach refers to the unique audience that you can reach with podcast ads, in addition to the people you’re reaching through other advertising channels such as TV and radio. This is critical for growth marketing because if you’re looking to scale your conversions, you need to replenish the top of your marketing funnel with new customers to convert.
A recent study by Sounds Profitable found that among the 25-54-year-old age group podcasting extends the reach of weekly radio listeners by 12% and 15% of television viewers. This is even greater among the 18-34 age group, where podcasting reaches a significant 18% of those who don’t listen to radio and 19% of those who don’t watch traditional broadcast TV.
Podcasting is reaching a younger audience that is increasingly retreating from traditional broadcast media, so if you’re targeting this demographic and advertising on broadcast, podcast ads can avoid a duplicative audience buying and maximize budget efficiency.
Podcast Advertising is a Marketing Multiplier
Adding podcasts to your media mix doesn’t mean dropping other channels. In fact, studies show that the addition of podcast advertising to your marketing mix improves performance across the board.
Acast surveyed marketers and discovered that podcasts pair fantastically well with other forms of media by reaching young and engaged audiences. In combination with most media, most marketers say that podcasts improve campaign effectiveness by 21-40%.
The Guardian also looked at the compounding effect of podcast ads as part of a media mix and found that the overall effectiveness of an advertising campaign is maximized by adding podcasts. Their study showed that the response to marketing campaigns of “it tells me something new about the brand” increased by 34% when podcasts were added alongside a radio campaign.
They also found that combined with digital display advertising, podcast advertising makes campaigns more memorable and trustworthy, with the data showing trust levels increasing from 45% to 63% when podcasts are added to the media mix.
Podcast advertising is fuel to the flames of marketing success.
Build Brand Trust
We like to think podcast advertising, especially host-read sponsorships, is like a recommendation from a trusted friend. That’s because of the unique parasocial relationship between listener and podcast host, with listeners who spend week after week listening to their favorite shows developing a bond similar to a real-life friendship.
A recent study from Acast looked into the trustworthiness of media personalities among US consumers, and found that 64% of podcast listeners actively seek out podcasters and create time for their content—the most of any other tested media personality—making the time spent with podcasts highly engaging and intentional.
For advertisers, podcast advertising offers a way to tap into these relationships and benefit from a halo effect that builds trust with your brand.
Further supporting this is our study with Nielsen, where 63% of respondents said the hosts of the podcasts they listen to are trustworthy, and 80% said they trust recommendations from hosts they currently listen to.
Low-Barrier to High-Profiles
Leading on nicely from the previous reason is the unparalleled access to the biggest names in podcasting, who are also the biggest names in their chosen field. Whether that’s entertainment, health & wellness, history, culture and arts, and much more.
Podcast advertising is a media channel where businesses can work with high-profile names such as Peter Crouch, Anna Faris, and Marc Maron easier than ever—as well as respected publishers such as the BBC, Economist, and The Guardian.
These audio partnerships offer the same, if not higher, engagement for budgets much lower compared to TV spots, and allow you to position your brand within exactly the right niche.
Reach Audiences Away From Their Screens
Unlike most other forms of digital advertising—TV, social media, display—podcast advertising has a unique characteristic: it reaches audiences when they are not glued to their screens.
Picture this: an office-goer is stuck in traffic, their phone is connected to the car stereo, listening to their daily news podcast. Or consider someone running on a treadmill, breaking a sweat while they tune into their favorite podcast. Even for someone doing chores or running errands, podcasts are their constant companion. These are moments when traditional digital ads would miss the mark, but podcast ads hit right on target.
Through Acast, you’re able to reach listeners no matter which app they choose to use; including Apple Podcasts and Spotify.
Podcast ads are non-intrusive yet attention-grabbing, it's subtle yet impactful. It gives advertisers the power to communicate with their target audience during those off-screen moments that were previously inaccessible. And the best part? The listener is already engaged, already attentive because they have chosen to tune in.
Creative Freedom
Podcast advertising offers an avenue for creativity for brands that they can’t achieve in other mediums. Unlike standard radio or TV spots, podcast advertisements can be crafted to seamlessly fit into the podcast episode, allowing marketers to weave their brand's narrative into the podcast's storyline. This integration provides an opportunity for brands to create more engaging, memorable, and impactful ads that resonate with listeners.
Moreover, host-read sponsorships are a popular format in podcast advertising where the host personally endorses a product or service. This format is particularly potent as it allows the host to infuse their personality, authenticity, and credibility into the advertisement. Listeners often view podcast hosts as trusted figures and are therefore more likely to be receptive and responsive to their endorsements.
The Effectiveness of Podcast Advertising
We’ve collated the most important learnings we’ve found while working with our research partners to outline why podcast advertising is one of the most effective channels for brands and advertisers:
1. Podcast advertising gets attention
The level of attention podcasts attract is even more impressive when you compare it to another, more traditional audio medium: radio. In our research with Mumbrella, respondents said radio is more likely than podcasts to be listened to as “background noise”, while podcast listeners are more likely than radio listeners to actively try to reduce distractions before hitting ‘play’.
It’s the same in some of the other traditional mediums too. While many consumers face ad fatigue across music streaming and television, the same can’t be said for podcasts. The same report from CUMULUS MEDIA found that, of 10 tested advertising mediums, podcasts were the one where consumers were least likely to avoid ads.
In Acast’s research with Nielsen, 60% of listeners said they pay attention to the ads in a podcast, and 25% said they pay attention to every or most of the podcast advertising they hear. Podcasts also rank second — and first versus all other forms of audio — when it comes to how immersed listeners are when engaging with the medium, showing the engagement, attention, and focus this medium can bring.
In a further study conducted by Acast, it was revealed that 98% of marketers for Direct-to-Consumer brands said podcasts are effective in reaching consumers, meaning podcasts are the most effective audio medium to reach DTC shoppers.
2. Podcast advertising motivates people to take action
Podcasts offer advertisers one of the most engaged audiences available, and we have the data to prove it. Key takeaways of our research with Nielsen highlighted that there was a significant increase in the number of listeners taking action after hearing an ad:
- 30 million visited a website for more information after the product was advertised, up 32% vs 2019
- 17 million visited a website to purchase or order a product advertised, up 44% vs 2019
- 1.3 million called a telephone number provided in an ad, up 25% vs 2019
- 4 million visited a retail location to get more information about a product advertised, up 14% vs 2019
- 4 million visited a retail location to purchase a product advertised, up 36% vs 2019
3. Podcast advertising is a trusted medium
Luckily for advertisers, podcast advertising is considered more trusted than other media channels. A Magna Global study illustrated that 48% of UK listeners said they trust podcast hosts more than hosts of other traditional media, including radio or TV shows. A recent Guardian study also found that trust levels increased from 45% to 63% when podcasts were added to a brand’s media mix.
One of the most important learnings from our research with Nielsen is just how much our listeners trust podcast advertising. 63% of respondents said the host of the podcasts they listen to are trustworthy, and 80% said they trust recommendations from hosts they currently listen to.
In fact, podcast hosts are almost as trusted for recommendations as family (85%) and friends (84%) — that’s understandable, because podcast hosts build authentic relationships with their listeners over weeks, months, or even years of weekly episodes.
YouGov research also found that UK listeners are more likely to “feel deeply connected” to a brand when they can hear “a voice” — and, more specifically, their favorite host’s. Brands should tap into this ready-made authenticity and trust, to help consumers further connect with their brand.
Why advertise on podcasts?
Who Can Benefit From Podcast Ads?
You may think you need to be an established business or a consumer-facing-only brand to even start thinking about advertising on podcasts, but that’s not the case. As the medium has grown with new technology available, podcast ads are accessible to all types of businesses, organizations, and people.
Brands of all sizes and industries
Podcast ads and Sponsorships offer the opportunity for brands to connect with an attentive and engaged audience no matter the size of the business.
For startups, advertising through podcasts can prove to be a differentiator as it allows them to target the right podcasts to reach niche audiences that may be interested in their products or services. Podcast ad campaigns don’t require huge budgets either, with campaigns using Acast’s self-serve platform starting from $250.
For larger enterprises, podcasting offers extensive reach to all types of audiences. Whether you’re looking to generate large-scale brand awareness for a new product launch or drive conversions for a SaaS platform, there’s a podcast advertising strategy that can deliver results.
Media Agencies
If you work for a media agency, podcast advertising can put your clients at the heart of the conversation. No matter who your client is, Acast has millions of listeners across over a hundred thousand shows, which means there’s a perfect audience for every business. There are many targeting options available to reach audiences, from interest targeting to first-party data integration, podcast ads allow you to target the right people, at the right time. There are also programmatic buying routes, and Acast works with all the major Demand-Side Platforms. Acast also offers robust measurement capabilities, from pixel-based attribution to track visits and conversations, to in-depth brand studies to understand the impact of campaigns.
Podcasters
If you are a podcaster, utilizing podcast advertising within your promotion strategy can supercharge your growth. It makes sense that the best way to reach podcast listeners is through podcast advertising, so there’s no better place to introduce your show to potential new listeners, and by targeting shows with similar interests, you can drill down into your perfect audience.
Influencers and content creators
Similarly to podcasters, podcast advertising can be a valuable tool for influencers and other content creators to connect with a devoted and engaged audience who share an interest in passion or content themes. This strategy can lead to more brand partnerships and sponsorships and increased engagement on their other platforms
Podcast Advertising Formats and Placements Explained
Types of podcast ads
Podcasting offers various ad placements and formats. There are three main advertising formats in podcast advertising - host-read sponsorships, pre-recorded ads and branded content.
Host-read sponsorships (also known as host-read ads, sponsor reads, or sponsorships)
Host-read Sponsorships are longer, editorialized commercial messages delivered by the podcasters themselves. Brands and advertisers can work with podcast hosts ranging from household names to niche influencers, to deliver native, creative, and authentic audio advertising. You may also hear these referred to as ‘live-reads’.
Sponsorships are typically a 60-second ad but can run to a couple of minutes in length, and pricing terms have a higher CPM. Acast’s podcast network has over 100,000 shows to choose from, so there’s a perfect audience for every advertiser.
Sponsorships sound like an organic part of a podcast, where the podcaster puts your messaging brief into their own words and style which makes for an improved listening experience for the podcast’s audience—making them more likely to be engaged with the products or services they’re talking about. They are typically recorded by the host of the show and seamlessly fit into the episodes.
Pre-recorded ads (also known as announcer-read ads or pre-produced ads)
Pre-recorded podcast ads are commercial messages supplied by the advertiser, usually featuring a voice-over artist and not a podcast host. Acast often refers to these simply as ‘audio ads’ or just ‘ads’, but you might also hear these referred to as announcer-read or pre-produced ads.
Pre-recorded ads offer meaningful reach at scale, that can be bought through Acast's self-serve platform, through our ad sales team, and programmatic .
Ads typically run for 15-30 (30-second ad max) seconds and the audio file for the ad is provided by the advertiser or agency. Advertisers also have the option of working with Acast’s in-house creative team to make an audio ad that cuts through.
Pre-recorded ads are dynamically inserted into podcast shows using a set of criteria called targeting. Targeting includes criteria such as campaign dates, geographic location, podcast categories, and audience demographics; which you set up before launching a campaign to determine which listeners should hear your ad or not.
Ads can be placed into podcast episodes during pre-roll, mid-roll, and post-roll ad slots.
Branded content
Branded content isn’t as common as ads or host-read sponsorships, but it’s still a growing and effective ad format in podcast marketing. Branded content integrates promotional or advertising messaging within the editorial content of podcasts, either as a branded segment, or branded episode, and you can even have an entire branded podcast series.
Branded content is effective as it aligns the advertisers’ products or services with the podcast’s content and the interests of the host, creating an entertaining listener experience for the audience. It’s specifically designed to be informative, engaging, and entertaining, seamlessly blending promotional messages with the overall podcast experience. This allows brands to reach their target audience in an authentic and non-intrusive manner, enhancing brand awareness and customer engagement.
There’s also opportunities to extend the podcast campaign beyond the podcast itself, such as events or social promotion on platforms like Instagram, LinkedIn and YouTube.
How can podcast ads be inserted?
When it comes to ad placement, there are two methods used to fill the ad slots in an episode - ads can either be “baked-in” or automatically inserted using a technology called Dynamic Ad Insertion:
Baked-in ads
Baked-in ads are added to the audio file itself, making them permanent - that means that all listeners will hear the same ad when they listen to the episode. These can appear anywhere in an episode.
Dynamic ad insertion
On the other hand, dynamic ad insertion stitches ads into chosen ad spots (pre, mid, or post-roll) which can be targeted to the person listening. This allows advertisers to get more value as their ads are heard by their target audience at the right time. It also allows podcasters to keep the advertising on their shows fresh, helping them to monetize their back catalogs.
Here at Acast, our podcast advertising campaigns are focused on using dynamic ad insertion, so we can maximize the effectiveness of our client’s campaigns, and provide a better listening experience for our show’s audience. Say goodbye to out-of-date ads in a podcast’s back catalog.
We’ve written an article around the benefits of dynamic ad insertion which you can read here.
One of the reasons why podcast advertising is so effective is that podcast listeners can be reached across many different platforms. Once your ad is added to an episode, it can be heard on podcast apps like Spotify, Apple Podcasts, Google Podcasts, Amazon Music, Audible, and many others. Acast supports the open ecosystem of podcasting, which means our podcast network can be heard across every listening app, and the same goes for our advertiser’s commercial messages.
There is also the opportunity to target contextually, as customers are moving more and more towards craving a more personalized approach to their marketing. Using our conversational targeting, advertisers can match brands within our podcast category collections or identify specific episodes they want to insert themselves into using our IAB episode targeting, inserting an ad within relevant topics or conversations. If you want to know more about the offering, take a look at this blog post breaking it down even further
Where are podcast ads placed in episodes?
Now you know what the different ad formats are, we’ll explain where these ads will be heard when a listener hits play on a podcast episode. These are collectively known as ad spots or ad spaces, and they come in three variations detailed below. Note: we give our podcasters the ability to choose exactly where these ad spots take place, ensuring a smooth listening experience for listeners.
Pre-Roll Ads
Pre-roll ads usually play at the start of episodes but can be moved up to 25% at the start of the episode by the podcaster. Pre-rolls are considered effective as while people may still be closer to their device after hitting play, there’s a good chance they will just let the ad play since it is leading up to the episode.
Mid-Roll Ads
Mid-roll ads can be placed in any episode that is at least 10 minutes in length or longer (this is to avoid ad fatigue on short episodes for listeners). This is the most lucrative ad spot, mid-roll advertisements have the best position because they are placed in the middle of an episode. During this time, listeners are often engaged in activities such as working out or doing the dishes, which makes them less likely to skip through the ad content.
Post-roll Ads
Post-roll ads play at the end of podcast episodes but can be moved up to 50% from the end of the episode by the podcaster. Post-roll advertisements are seen as the lowest value because many listeners tend to stop listening to the show when the episode ends, especially if they are only listening to a single episode. However, post-rolls still can be effective as people often have their hands full with their activities while listening to the podcast. They prefer to let the ad play and have the next podcast episode start automatically rather than skipping.
What can you buy with Acast?
Where to buy podcast advertising?
If you’re ready to take advantage of this medium, you’ll need to know how to set up a campaign. Here are the main routes for buying podcast advertising:
Acast’s self-serve platform
This is by far the easiest and fastest way to buy podcast advertising. You can run pre-recorded ad campaigns and host-read sponsorship campaigns from the same platform. Set up a campaign that runs across multiple shows with the option to target your audience by gender, age, location, Nielsen Audience Segments, and other demographic categories.
Unlike working with sales reps or the podcaster directly, the self-serve platform does not involve any back and forth or negotiating CPMs with multiple shows - it's a fully automated solution and available at any budget level, with campaigns starting at $250. You can read more about Acast’s self-serve podcast advertising platform here.
Advertisers are often tempted to purchase show-by-show basis, looking at a small pool of top-ranked shows with a large number of listens and downloads. In the US, for example, this results in about 44% of advertising dollars going to the top 500 shows- but those shows only reach 12% of the total podcast audience. That means advertisers are missing out on reaching 88% of podcast listeners. That’s why Acast recommends purchasing advertising based on the audience you want to reach, rather than on a show-by-show basis. Mid-sized and smaller shows with niche audiences can offer advertisers the reach they need but at much more affordable pricing.
Getting started with Acast's self-serve ad platform
Through podcast advertising networks
The most popular podcasts are often represented by a podcast network that has a dedicated sales team, like Acast or AdvertiseCast. Working directly with a podcast network’s sales team can deliver bespoke campaigns that include a custom selection of shows, a combination of ad formats of sponsorship, ads, and even branded content. They’ll also provide a PCA (post-campaign analysis) to report on the results of the campaign. These campaigns can require budgets to be a minimum of $10,000-$15,000, although this can vary.
Directly through the podcaster
Successful podcast creators, usually smaller and mid-sized podcasters, are very open to working directly with advertisers. If these shows are not part of an ad network, advertisers will likely only be able to purchase host-read sponsorships, and often these will be baked-in rather than dynamically inserted. With millions of podcasts available, it can be tough to find shows that are the perfect fit. Platforms such as Podchaser offer excellent tools to help brands identify the best podcasts to work with.
Create an Affiliate or Commission Scheme
An affiliate or commission scheme in podcast advertising is a way for advertisers to pay or incentivize podcasters to promote their products or services. When a podcaster participates in an affiliate scheme, they receive a unique link or promo code that they can share with their listeners. If someone from the audience clicks on the link or uses the code to make a purchase, the podcaster earns a commission or a percentage of the sale. This allows podcasters to monetize their content and earn income based on their ability to drive sales or conversions. It's a win-win situation where advertisers only pay for the conversions they want.
How much does podcast advertising cost?
Understanding the costs of a podcast advertising campaign can be confusing, especially when you’re new to podcast advertising. If you want the “TL;DR” (too long, didn’t read):
The average CPM (cost per mille/1000 listens) of podcast ads is between $15 to $30 for pre-recorded ads up to 60 seconds. Host-read sponsorships can cost between $25 to $40 CPM.
Ultimately, podcast advertising rates vary based on the type of ad, audience size, targeting criteria, and other factors.
What Are the Types of Cost Models?
Commonly, podcast advertising is sold to advertisers in two main ways which are by CPM and CPA. There’s also the option buy at a flat rate. We’ll explain what these are and how they work.
CPM
Podcast advertising is most often sold on a CPM (cost per mille) basis, which means costs per a thousand impressions. In podcasting specifically, it means the advertiser will pay a set price per 1000 ads served. So the cost of a podcast advertising campaign depends on the number of downloads or listens you’ve booked for your advert to be heard.
Podcast advertising rates vary, so while host-read sponsorships and regular ads are priced by CPMs, various formats, and placements have different CPMs based on their value and effectiveness.
Podchaser detailed average podcast advertising rates for host-read slots as follows:
- Podcast Pre-roll Ad CPM
- The average 15-25 second pre-roll ad spot will have a $15 CPM.
- It’ll cost approximately $1,500 to purchase a pre-roll ad on a podcast that generates 100,000 listens.
- Podcast Mid-roll Ad CPM
- The average 30-60 second mid-roll ad spot will have a $30 CPM.
- It’ll cost approximately $3,000 to purchase a mid-roll ad on a podcast that generates 100,000 listens.
- Podcast Post-roll Ad CPM
- The average 15-25 second post-roll (also known as an “end-roll”) ad spot will have a $10 CPM.
- It’ll cost approximately $1,000 to purchase a post-roll ad on a podcast that generates 100,000 listens.
CPA
A CPA cost model in podcast advertising is a method that determines the pricing structure based on the number of desired actions, such as sign-ups or purchases, rather than the traditional method of paying for impressions or downloads (CPM). With this model, advertisers pay only when listeners take specific actions that align with their marketing goals. This approach allows for better cost control and ensures that advertisers are only paying for the desired outcomes. By focusing on performance-based metrics, the CPA cost model provides a more effective way to measure the success of podcast advertising campaigns.
The CPA model is often used by affiliates and direct response (DR) where unique promo codes used in the campaign can be used to accurately track conversions.
Flat rate
A flat rate cost model is a method of pricing podcast advertising where a fixed fee is charged for a specified duration or number of podcast episodes. This means that advertisers pay a set amount regardless of the number of listens or downloads the podcast receives.
This is very uncommon for established podcasts so usually only applies to niche, smaller shows with a limited but dedicated group of subscribers. Although it’s straightforward for both the advertiser and the podcaster, it lacks transparency of how many impressions the advertiser is paying for.
You can read our full guide to podcast advertising costs and rates in this article.
How to measure podcast advertising effectiveness
If you’re new to podcast advertising, you may be tempted to use the same performance metrics as paid search and social media, such as CTR, CPC, or CPA. But podcasting is a cookieless, audio-based medium that requires a different approach to measurement. The podcast audience is mostly listening, not scrolling or clicking. For a full breakdown of how to measure the impact of podcast advertising, you can take a look at our full article on it here.
So what metrics should you look at?
At the most basic level, start with reach. For podcast ads, reach is defined as the number of unique people who listened to your ad at least once, including streams and downloads. This metric is especially important for brand awareness campaigns, where the goal is to reach as broad an audience as possible. Always look for IAB-valid reach, like the one provided by Acast, to make sure your numbers are accurate.
In this case, reach is similar to what you’ll see with search and social - it’s the summation of how many people were exposed to your ads. Now comes an important part: how to measure results for a call-to-action (CTA).
This is where podcasting’s unique attribution requirements come into play. How you measure attribution depends on the content of your ad and the structure of your funnel. Popular ways to measure podcast advertising include:
- Promo codes, discount codes, and coupon codes: This is often known as “Direct Response” or “DR” for short. This is when your podcast ad or sponsorship mentions a unique code that can be redeemed at checkout, so you can accurately track the purchases and new customers that are a direct result of your podcast ad campaign.
- Pixel-based attribution: If you’re looking to measure cost-per-acquisition (CPA) or return on ad spend (ROAS), you can use 3rd party tracking services that leverage tracking pixels to tell you how many people heard your ad on a podcast that ultimately visited your website, purchased an item or signups for an account. Acast supports 3rd party attribution vendors such as ArtsAI, Podsights, Podscribe, and Claritas. Acast's preferred attribution partner is Podscribe, as we offer our advertisers free tracking using their pixel.
- Vanity URLs: Telling listeners to visit a unique URL or landing page (that you are only using for podcast ads). Just make sure the URL is short and easy to both pronounce and remember. You can spell out potentially confusing words in your ad read to make sure.
- Surveys: Adding podcasts to your “How did you hear about us” survey
Remember that since the audience is hearing your podcast ad, a clear & memorable call to action is necessary if you want to bring them into your digital marketing funnel.
Looking for guidance on how to create an audio ad using one or more of the attribution methods above? Check out our guide to creating the perfect audio ad here. Generally, along with strong content and a clear call to action, you’ll also want to make sure your ad sounds great. The higher the quality of your ad—the better the conversion rate.
What conversion rates should you expect?
Podcast listeners are less distracted and more engaged, making them a more receptive audience for advertising. According to the Edison Super Listeners report, podcast ads are the most recalled type of ad – with 86% of respondents saying they remember seeing or hearing a podcast ad. For social media, it was 80% and for websites 79%. So how does this translate metrics-wise?
According to the podcast attribution platform Podsights, the average conversion rate for podcast ads to website visit events is about 1.32% across industries*. If you wanted an equivalent conversion rate for social media, you could compare this to the average click-through-rate for Facebook and Instagram ads, which is currently 0.90%
Using some quick back-of-napkin math, you can estimate the required ad spend and CPC based on these benchmarks. Let’s say you run a podcast ad with 200,000 impressions at a $15 CPM. This works out to be a $3,000 ad spend. If you set your frequency cap to three, this means that about 66,700 unique listeners will hear your ad a maximum of three times. We can use the 1.52% conversion to estimate around 1,014 visitors, which equates to a CPC of $2.95. Keep in mind that this is a very broad estimate and actual performance depends on a mix of factors like creative quality, ad spend, and total unique impressions.
Like any new media channel, you’ll want to test and learn how podcast ads can work for your brand and customers. The good news is that podcast advertising offers something for everyone - whether you’re running a brand awareness or direct response campaign, and whether your budget is $100,000 or $1,000.
Start podcast advertising with Acast today
You can start a podcast ads campaign with Acast today, just head to our website. There you’ll find more information about advertising with Acast, get started building your first podcast ad campaign using our self-serve platform, explore the different podcasts on our network and their listener demographics, or get in touch with us for more details.
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