Why You Should Invest In Podcast Advertising

The world of digital advertising has continued to get more competitive each year as we see an expansion of digital marketing and how businesses are monetizing their products and services. Traditional advertising is slowly phasing out as new industries like streaming services, YouTube, and podcasts have begun to incorporate digital ads onto their platforms. Podcast advertising has begun to find its home with specialized podcasting platforms like Spotify, Stitcher, Apple Podcasts, Google Podcasts, and more. While podcast advertising is fairly new, we’re seeing a surge in companies clamoring to partner and sponsor popular podcast shows which now has digital marketers discovering why they should invest in podcast advertising. 

 

Pricing via Cost Per Mile

 

The great news is that podcast advertising is still relatively new and fresh to marketing so there is plenty of wiggle room for those with a variety of budgets. Every podcast differs when it comes to pricing based on factors like the platform, show popularity, and host. However; the majority of podcasts use the CPM scale to determine costs which calculate the cost per how many listeners/downloads they get on a cost per thousand downloads basis. By using this model, it puts the power in the hands of the podcast by allowing them to set a standard price regardless of the advertiser. As you investigate other advertising structures you will also see ad spot pricing which can vary based on pre-roll, mid-roll, and post-roll packages. The other common pricing methods are cost per acquisition (CPA) or a freely negotiated price where you can discuss a larger package deal that benefits your business.

 

The Podcast Audience

 

If we’re talking diversity and versatility, the average podcast user has it all. Recent studies show that men and women both enjoy podcasts with the age demographic ranging between 18-54 which is great for podcast advertisers. Both of these metrics provide businesses to grasp a strong foothold in the podcast industry by having more opportunities to find a podcast show or host that aligns with their target audience. One of the biggest advantages of the average podcast user is that 64% listen to their favorite podcast on a smartphone and also love to listen on the go whether they are in a plane, automobile, taking public transportation, or traveling. This speaks to audience dedication, loyalty, and stability to their podcast of choice which means there’s an excellent chance your ad will definitely be heard at some point. 

 

Reaching a Niche Audience

 

Regardless of the industry you are in, if you’re involved in any type of marketing, you should already have a detailed understanding of the demographics that your brand is targeting. While you may not know your customers inside and out, you’ll need to understand key details about your audience in order to find a podcast that best fits your brand. You’ll need to align your efforts with their expectations before you can customize your podcast ad to meet their needs. In order to better understand your audience, it’s helpful to see how preliminary or competitive podcast advertisers were successful in the past. Did they use social media? What type of ad did they create? In the early years of podcast advertising, most of the people who listened were web developers and technology entrepreneurs, needless to say with over 2 million podcasts in rotation the net has widened significantly. The most successful companies that advertised through podcasts focused on their demographic and knew how to customize their message to their specific needs. Reaching a niche audience who shares similar interests as your target audience can help you reach new customers. Listening to a podcast is an extremely intentional act for an individual and it’s important your ad appeals to the person listening to it.

 

 

Who Should Try Podcast Advertising?

 

While podcasts have been around since the early 2000s, podcast advertising is relatively new, and companies are still figuring out the best ways they can use this for their marketing channel. However, with the right strategy in place, you can leverage this marketing opportunity no matter who you are. Deciding to invest in podcast advertising isn’t exclusive to enterprise organizations with big budgets, chances are you can find a great host, platform, and podcast that fits your budget whether you are a blogger or small business.

 

Let’s take a look at some of the people who should use podcast advertising as a means to grow their business.

 

Brands

 

With all the technology and media channels available, people tend to be more distracted and less loyal to brands. Although podcast advertising can be primarily used to build brand awareness, you need first to get in front of small but extremely engaged audiences. Develop a cost-effective marketing strategy and create content that you know your audience will love. Then approach podcasts that serve your target audience. Think of the way you want to tell your unique brand story and how you can connect it to a specific podcast audience. The heart of podcasts is about telling an audio story in some form or fashion whether it’s reporting the news or interviewing a guest. Podcast ads allow hosts and the brand to tell a story about a product or service that is fresh and appealing which is different from the traditional marketing model.

 

Authors and Bloggers

 

Along with podcasts, audiobooks are also gaining popularity among the younger generation who are consuming their favorite books through Kindles and Nooks. People who listen to podcasts on their daily commute even choose to listen to audiobooks in genres that they enjoy which of course span hundreds of topics. As an author, you can create audiobooks and promote them to users who already consume audio-first content. Look for podcasts that have an audience of book lovers which can include reviews, monthly round-ups, or dedicated podcasts to a specific genre. You can also include your ads in podcasts whose audience consists primarily of your target audience. In addition to authors, bloggers also frequently use podcast advertising to promote products like online courses and digital products. The podcaster either sells ad slots to the blogger or joins a blogger’s affiliate program, earning a commission on every sale. 

 

Startups

 

According to Comscore, “Compared to the average consumer, podcast listeners are more likely to have a college or higher education, $100k+ household income, and to be early adopters in multiple categories including movies, electronics, and CPG.” Since podcast listeners are first adopters and are tech-savvy, you can use ads as a way to get beta-users or further a proof of concept for your startup. For an up and coming startup podcast advertising provides a multitude of benefits such as creating brand awareness which will expose your business to new listeners.  This will keep your brand top of mind, allow for a seamless introduction into your brand personality, and create trust between you and the audience. In addition, this can help create organic sales by allowing you to provide further insight into your products and services throughout the series of podcasts you advertise on. Startups with lower marketing budgets can offer an exclusive discount code which can make the audience feel special and further encourage them to make a purchase.

 

Podcast advertising is a fluid medium of marketing that is bound to fit any audience or desired action you may require. Investing early can mean great success in a low-competition space & early data-gathering that can be used to optimize future campaigns as the space develops more robust tools & options. So what are you waiting for? Dive in head-first or have an agency like Iron Roots guide you through the process of advertising on podcasts.