Podcast Advertising: A Comprehensive Guide 2022

Podcast Advertising: A Comprehensive Guide 2022

Table of Contents
Table of Contents

“A Podcast is a Great Way to Develop Relationships with Hard-to-Reach People” ~ Tim Paige

Podcast advertisements have powerful subconscious impacts on our brains. It also imprints itself on our memories, making them memorable. When you're thinking about buying a product or service, the advertisements you heard on podcasts will flash up in your head.

Podcast advertisements, on average, have more memory encoding as compared to social media ads, according to NeuroLab research.

If you are planning to attract and convert huge masses to your brand or business— then Podcast Advertisement is the right choice for you.

In today’s article, we will learn about podcast advertising and its related concepts. Let’s take a look at the content we’ll cover further:

  • What’s Podcast Advertising?
  • Understanding Podcast Advertising
  • Working of Podcast Advertising
  • Statistics of Podcast Advertising
  • Types of Pricing Models for Podcast Advertising
  • Formats for Podcast Advertising
  • Two Types of Placing Podcast Ads
  • Why Does Podcast Marketing Effectively Work?
  • Benefits of Podcast Advertising
  • Examples of Podcast Advertising
  • Effective Tips to Successfully Run a Podcast Advertising Campaign
  • Frequently Asked Questions (FAQs) on Podcast Advertising

Let’s Explore!

What’s Podcast Advertising?

Podcast Advertising is a technique of advertising your brands or business through digital audio platforms. These ads are strategically placed during the beginning, middle, or end section of any podcast.

Furthermore, podcast advertising is often more powerful and tailored than mass media ads such as TV commercials. It is because podcasts often cover specific niches that generally target committed and attentive audiences.

Podcast Advertising is a technique of advertising your brands or business through digital audio platforms.

Moreover, podcast ads can be purchased directly from podcast presenters or through a programmatic audience-based buying technique. Further, the podcast host endorses your brand or business with a 60-second live-read audio ad.

Additionally, the radio ad includes details on your product/service, coupon codes, any personal experiences, ordering information, and more. It directly impacts listeners so that they can purchase your services when required.

Understanding Podcast Advertising

As stated previously, podcast ads impact on a subconscious level as well. When the listener is in need of any specific service or product— the first name that will pop up in their minds will be of your business or brand.

In simple words, podcast advertising makes listeners remember about your business or brand through podcast advertising.

Before launching your podcast advertising, you have to strategically plan all aspects of the podcast advertising. It includes space, medium, types, budget, and more.

You're ready to launch your promotion once you've completed each stage of podcast advertising. Let’s cover each aspect one by one in the following sections.

Working of Podcast Advertising

According to The Podcast Consumer survey, 54% of podcast listeners consider buying services or products, which they listened to on the podcast.

Interestingly, podcast advertising offers freedom to marketers to communicate with their listeners in a one-on-one setting. It also allows you to target and attract listeners by using a distinctive format.

Podcast advertising merges flawlessly with content that turns out to be more appreciated and effective. So, instead of frustrating the audience— you have to figure out unique approaches to get your listener’s attention. It can be implemented via storytelling, humor, and more.

Because of the essence of the podcast listening experience, advertisements that are meant to mix in flawlessly with the content are more appreciated and effective.

Ads Placement

As mentioned previously, podcast ads are strategically placed at the beginning, middle, or end section of the podcast program.

  • Pre-Roll: The ad spot that appears at the start of a podcast. It is a 15-second ad segment.
  • Mid-Roll: The ad spot that appears in the middle of a podcast.  It is a lengthier 60-second ad.
  • Post-Roll: The ad spot that appears at the end of a podcast.

The Mid-Roll works most effectively as compared to the other two. It is because the audience mostly skips over the first ad and ignores the last ad.

So, we are left with a mid-roll that generates significant engagement and has fewer skipping clicks. And, it will be charged accordingly.

3 Types of Podcast Advertising

Standard, affiliate and branded podcasts are the three types of podcast advertising available. Let's take a closer look at each of these three systems.


In this advertising agreement, the corporation or sponsor compensates the production team, podcast presenter, or organization for advertising space in their podcast.

Here, the advertising can be either read-live by the host or pre-recorded. Moreover, it can also be static or dynamic in nature. To stay on the same page, both parties must also agree to the placement of ads inside the audio clip. It could alter the advertising fees as well.


In this system, the podcast presenter advertises or endorse a product or service on your podcast under an affiliate marketing system. As a result, they are further compensated when their endorsement generates sales or conversion.


Some companies choose to proceed all-in on the podcasting scene by producing their own branded show. The primary purpose is to increase interaction, brand exposure, and ultimately revenue.

Although, this is a fantastic method to interact and engage with your consumers and potential audience and provide them with relevant, valuable content.

Statistics of Podcast Advertising

You will be able to recognize the effectiveness of podcast advertising from the following statistics. Check out:

  • According to 54 percent of podcast listeners, companies they hear advertised on podcasts are more likely to be considered. (Edison Research)
  • Millennials and Gen Z are 5% more inclined than older generations to engage in podcasts for professional reasons. (EX-IQ)
  • According to WARC, the global podcast market is expected to account for 4.5 percent of all audio advertising spending by 2022, totaling $1.6 billion. This is nearly double the expected ad spend of $885 million, or 2.5 percent of the audio market, for this year.
  • By 2021, income from podcast advertising is estimated to reach $1 billion. (According to the IAB Podcast Ad Revenue Report)
  • Approximately 64% of individuals discover about podcasts through social media, while 40% of listeners learn about them from other acquaintances or through word of mouth. (EX-IQ)
  • According to NPR, after listening to sponsored content, 75% of podcast consumers will respond or take action. (National Public Broadcasting)
  • While 49 percent of podcast listeners do so at home, 22 percent do so while driving. (Podcast Insights)
  • Eighty percent of podcast listeners stick around for most or all of the episodes. (Podcast Insights)

Types of Pricing Models for Podcast Advertising

There are three sorts of pricing structures for podcast advertising. Let’s learn them:


'Cost per mile' is the abbreviation for CPM. This is how pre-roll, mid-roll, and post-roll ads are normally charged.

For every play of an episode or cost per thousand listen or impressions, the advertiser will pay a specific amount. A thirty second ad CPM is $18 and a 1-minute ad CPM is $25, according to industry standards.

This pricing structure is typically better suited to longer podcasts with thousands of impressions every episode.

Remember: The way ‘impressions’ are measured can vary when attempting to negotiate an advertising deal.


The cost of obtaining a single consumer is represented here as the price. As a result, the corporation pays a pre-determined payment to the presenter each time the podcast refers a customer to the business.

Moreover, CPA can help you enhance your sales conversion rate if you're targeting a podcast. And, this podcast should perfectly match a specific item that you offer.

The volume of conversions is the key emphasis of this pricing structure. The business or sponsor earns a pre-determined amount each time an audience converts as a consequence of the podcast ad.

Remember: You'll need a mechanism to track conversions using this cost model. For example, you might utilize a one-of-a-kind promo code and so on.


Some podcast advertising partnerships stipulate a set fee for podcast promotion. However, this method is not widely used. The price will be negotiated between the contractual parties and will be influenced by a number of criteria, including the size of the audience.

Formats for Podcast Advertising

Following we have discussed three different types of formats associated with podcast advertising. Let’s learn:

Branded Podcasts

Branded podcasts are the ones where the entire broadcast is focused on a company, its industry, sector, or expertise. Moreover, it is the opposite of self-contained commercials which appear in other person’s shows.

Please keep in mind that this does not indicate that the entire program is a commercial. Businesses frequently aim to provide valuable material to their target audience in order to improve their brand's reputation and trustworthiness.

Fully-Generated/Hybrid Podcast Ads

The majority of fully produced podcast advertising is produced by the brand itself. Moreover, this provides the company with entire authority over the storyline, production quality, audio, tone, and other aspects of the campaign.

Once they're satisfied, they further send the ad to the podcast. It then incorporates it into its program in the manner you specified.

Read or Host-Voiced Podcast Ads

When a podcast host takes a short interlude from their program to endorse your services or product in their own words.

As the advertiser or sponsor, you can provide them some key points or facts to highlight, or even a narrative. However, the most important thing is that this promotion comes from the host himself. This is a fantastic method to capitalize on the podcast host's reputation and utilize it to your advantage.

Moreover, these ads are significantly less intrusive than others as the host is speaking in his or her own voice. Furthermore, these ads use the host's credibility to give the promotion more authenticity and credibility.

Two Types of Placing Podcast Ads

Ads for podcasts can be introduced in different ways. Check the following approaches:

Baked-in Ads

These advertisements are embedded in the main audio file of the podcast programs, rendering them a necessary component of the recording. This implies that each and every listener will encounter the same advertisements.

Dynamic or Data-Driven Ads

Dynamic ad insertion (DAI) matches listeners to different ads using the ad servers of podcast hosting companies. This is a considerably more customized and focused advertising strategy that produces far more sales and conversions as compared to others.

Another benefit of DAI is that you may keep the adverts up to date without interfering with the podcast's core audio.

Remember that this advertising must be pre-recorded; otherwise, it will seem like a disruption rather than a host-read advertisement.

Why Does Podcast Marketing Effectively Work?

Audio advertising effectively works when it comes to engaging the audience and delivering messages. Podcast advertising is undoubtedly a powerful medium to capture the audience’s attention from around the globe.

In addition to convincing facts and statistics, the following reasons will help you understand what makes podcast marketing so effective. Let’s check:

Wider Reach:

As we all know that podcasts have a wider audience base. And, it automatically makes the business target and reaches a diverse audience group.

As a result, fortune works in the favor of marketers as they are loaded with certain options to choose from. It includes demographics, audience, niche, specialty, and so much more.

Captive and Hyper-Targeted Audience

Podcasts have a highly targeted, loyal following that has chosen to listen to their content.

Furthermore, this is a successful marketing technique because companies can target their ideal customer, who they already know is interested in their industry.


Podcasters tend to develop a devoted following. This automatically converts to trust.

Mixing a highly active audience with a renowned presenter whom they recognize and respect is a great combination for marketers and advertising. The influence of podcast hosts can help the enterprise.

Benefits of Podcast Advertising

Check the following advantages associated with podcast advertising:

Enhances Brand Awareness and Reach:

The main objective of every business is to reach a huge number of audiences. And, podcast advertising effectively helps you to achieve that. It aids in the promotion of your products and services while also boosting brand awareness and reach.

If you want to endorse and connect with millions of users— then podcast advertising is the one for you.

Builds Strong Connection:

Podcasting helps you to substantially grow your audience and build a strong connection with them. When you have a wider community that trusts your service or products, then they further promote your services as well. It could be done by social media channels or word-of-mouth.

Furthermore, it can be achieved only when your brand or business offers them great service along with customer service. Therefore, make sure to build connections by offering exceptional services or products to them.

As a result, your business will automatically reach out to several new customers. And, it will boom much more than expected.

Generates Huge Traffic:

You can ask people who listen to you to consume additional material on your own website, which will increase your traffic. Listeners on podcasts pay attention to every ad as they are devoted to listening to podcasts and specific niches.

Moreover, if you are following the right pattern on targeting your customers, then you will generate a lot of traffic from all around the globe.

Builds Authority:

When people pay attention to you, learn from you, and follow you're advice. Then, you gain influence or build authority over them.

This further boosts your chances of persuading people to take the necessary action (e.g., use your service, buy your products) to recognize the potential you provide.

Conversions and Revenue:

When you build your community or connect with a wider audience, then you are all set to increase conversions and revenue. Your work as a marketer doesn’t end just at offering ads including podcast advertising. Instead, it's only the starting point of your business.

Once the audience reaches out to you, try to persuade them with your excellent services. As a result, your engagement and revenues will rise.

Examples of Podcast Advertising

Check the following example of Podcast Advertising:

Armchair Expert

Dax Shepard, the presenter of Armchair Expert, does an outstanding job of presenting genuine and emotive adlib ads.

In one of his episodes, he adores and mentions his Chrysler Pacifica; he calls it "the coolest van in the marketplace" and a "very sexy miniature van."

Dax seamlessly links the ad into a current event in the show with Malcolm Gladwell, noting how functional and large the van was for their recent visit to Disneyland.

Monica, his co-host, was able to join in because it wasn't scripted or pre-recorded.

They also give it a unique URL: PacificaandDax.com, which makes it incredibly easy for listeners to remember.

Dax also has a knack for narrating stories.

At minute 56 of the show, Dax discusses with Ashton Kutcher about his recent visit to the dunes, where he had been in a lot of physical discomforts, and how CBD MD took control with immediate relief for his muscles and joints.

You'll want to listen to the commercials because they're funny and sarcastic, and they're relevant.


At 2:19 in an episode with Chris D'Elia, he mentions the sponsor The New Yorker that goes:

"I just love deep diving into these long-form articles. I get euphoric when I read great writing like that. Sign me up for a 12-page article on the diminishing supply of sand, and I'm at a ten. It gets you interested in all of these things you couldn't even imagine were interesting.”

It makes no difference whether Dax read (and appreciated) a 12-page piece about how the planet is losing sand. However, it's silly that he'd be engaged in such a topic, but the idea that there are so many to pick from does stimulate your attention.


This podcast advertising example is a bit unique because of its Serial affiliation, MailChimp has become a runaway success.

The most popular section of the ad was not planned, according to Mark DiCristina, marketing director at MailChimp.

Serial's producers approached MailChimp in June, based on their previous engagement with This American Life, Serial's parent show.

Dana Chivvis, the show's producer, recorded several people on the streets of New York speaking the company's name for the commercial. It's not exactly pushing the envelope.

However, listeners have become fixated on one woman's embarrassing mispronunciation of "chimp," which she translated as "kimp." Is it keemp? or Qimp?

The 19-second commercial has captured everyone's attention for its unexpected comedy and charm.

MailChimp’s marketing director Mark DiCristina says this most popular element of the ad was not planned.

MailChimp has been a huge success as a result of its Serial connection.

Effective Tips to Successfully Run a Podcast Advertising Campaign

Following we have discussed some effective tips that will help you to successfully run your podcast advertising campaign. Let’s learn:

Recognize the Value of Podcast Advertising

You must first comprehend the medium, the space, and what works before you can launch an effective podcast advertising campaign.

This further includes the importance of ad placement, understanding the many sorts of ads, the differences between injected ads, and the various cost models.

Finally, once you strategically consider and decide the right options for your campaign. Then, you'll be able to run your podcast advertising campaign smoother.

Select the Appropriate Podcast (s)

You've already done half the work if you make the effort to choose the correct podcast to advertise on. Investing time in finding podcasts that are relevant to your company and have already captured the attention of your target audience will help your podcast ad campaign succeed.

Refine your Cost and Budget

Everything revolves around money and so is Podcast advertising. You'll need a firm grasp on your advertising expenses and the optimum cost strategy for you and your business.

Frequently Asked Questions (FAQs) on Podcast Advertising

Following we have discussed some crucial frequently asked questions on podcast advertising. Let’s check:

Que 1: What is the Revenue Model for Podcasts?

There are numerous ways for podcasters to profit from their work. Advertising isn't your only source of revenue. You may sell goods, offer paid podcast subscriptions, and more.

Que 2: What Does it Cost to Advertise on a Podcast?

Unfortunately, there is no one-size-fits-all solution. You might be able to locate some industry-standard pricing to use as a guide.

Furthermore, the rate you pay will be determined by your cost model and the terms you are able to negotiate. If you use a podcast network, you may be required to pay a modest fee to them.

Que 3: How do you Evaluate the Effectiveness of Podcast Advertising?

Fortunately, you can measure the success of your podcast advertising strategy using quantifiable data and insights. You can easily correlate your podcast ad's performance by monitoring the conversions and purchases that result from your ad.

By incorporating a unique discount code or URL, it's simple to monitor direct sales from a single ad. It's still tough to attribute indirect sales.

Que 4:  What is the Average Cost per Thousand Impressions (CPM) for Podcast Advertising?

Podcast advertisements are premium venues with premium prices. They're priced on a cost-per-mile (CPM) basis, with each episode's cost determined by the number of certified downloads it receives. Prices can range from $18 to $50 per thousand views, with the more popular shows costing more.

Que 5: How are Podcasts Measured?

Downloads are used to quantify ad impressions: how many instances an episode with an ad is downloaded. The download count is based on first-party statistics that reflect actual user behavior.

Que 6: What are the Differences between Radio Commercials and Podcast Ads?

Podcasts have a less ad load (ads per hour) as compared to radio. The best podcast commercials are voiced live, in the hosts' own words. This effectively integrates advertisements into broadcasts, keeping listeners engaged rather than urging them to tune out.

It also implies that podcast ads are more interesting and unique than pre-recorded radio commercials, which are boring and repetitive.

Que 7: What is the Best Way to Identify Podcasts that are Relevant to my Brand?

Starting with a key category from the menu bar is a good place to start. You can then filter postings based on your ad budget, prospective reach, and other factors.

Now carefully review each podcast listing to determine which podcasts are most appropriate for your company/brand.

Que 8: Are you Able to Afford to be on a Podcast?

This is a crucial issue to ask oneself at the outset.

Testing podcast advertisements as a channel properly can be fairly costly.

Every podcast has a unique listenership. In order for podcasts to be successful, the target audience must be a good fit for your product. And you'll have to run ad tests on a variety of podcasts to find the right fit.

If you only run ads on one podcast and they don't work, that doesn't mean podcast ads won't work for you; it simply means you need to find the appropriate show with the right audience.

Trying out many podcasts at once, on the other hand, might soon mount up.

Que 9: What Kinds of Businesses Can Benefit from Podcasts?

Typically, companies that provide self-improvement services use podcasts. These include:

Language courses, fitness coaches, marketing firms, and so forth.

Podcasts have also been shown to be effective in promoting high-cost services such as:

Psychotherapy, well-being, personal care, internet entertainment, and games, to name a few.

Que 10: Where Can You Put a Podcast on the Internet?

They usually discover them through music streaming services and blogs.

1. Streaming Music Services

You can find certain platforms for distributing podcasts. It includes Spotify, Podcasts, Apple Podcasts, many more similar services are available. You can easily create your podcasts on these popular platforms and reach millions of users in a minimum time.

These platforms, unlike hosting providers, do not store your show. Rather, they make it possible for people to find you and subscribe to fresh episodes.

2. Blogs and websites

If you're going to offer a podcast on a website as part of your content strategy, make sure the extra content doesn't slow the page down.

People listen to podcasts on the move, whether they're driving, cleaning, cooking, or traveling. Therefore, it's especially vital for the mobile version of the site.

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Final Takeaways

Great! You finally made it to the end of this detailed guide. For this last section, we’ll revise some crucial points for your future reference. Let’s take a look:

  • Podcast Advertising is a technique of advertising your brands or business through digital audio platforms.
  • Podcast ads are strategically placed at the beginning, middle, or end section of the podcast program.
  • Standard, affiliate and branded podcasts are the three types of podcast advertising available.
  • Podcasting helps you to substantially grow your audience and build a strong connection with them.
  • You'll need a mechanism to track conversions using this cost model. For example, you might utilize a one-of-a-kind promo code and so on.
  • When people pay attention to you, learn from you, and follow you're advice. Then, you gain influence or build authority over them.
  • Investing time in finding podcasts that are relevant to your company and have already captured the attention of your target audience will help your podcast ad campaign succeed.
  • The rate you pay will be determined by your cost model and the terms you are able to negotiate. If you use a podcast network, you may be required to pay a modest fee to them.
  • Podcast advertisements are premium venues with premium prices. They're priced on a cost-per-mile (CPM) basis, with each episode's cost determined by the number of certified downloads it receives.
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