The data is clear: podcast ads work! Market research by Edison Research says so:

• 67% of the population has listened to a podcast at least once.

• 47% listen to one at least three times a week.

• 23% of weekly listeners spend at least 10 hours listening to podcasts.

• Interest spans all generations: 29% of children ages 6-12, 59% of those 12-34, 55% of those 35-54, and 27% of seniors over 55 listen to podcasts.

• Podcasts are very popular among listeners with high incomes and advanced education.

• 46% of listeners have purchased a product or service recommended during a podcast.

• Podcast listeners don't skip ads, especially those at the beginning and middle of the show.

Now that you're equipped with the data, it's the perfect time to start promoting your product or service through a podcast.

Creating an effective podcast ad is an ambitious challenge, and a number of factors do have to be considered.

Nothing should be left to chance if you want to achieve great results!

If you're considering promoting your brand or product within a podcast, this is the right place for you!

While if you're a podcaster seeking business opportunities and want to find out more about ads in corporate podcasts, read this article, too: "Podcast Advertising Services - The Ultimate Guide."

How to Choose the Right Podcast for My Brand?

• Firstly, pick a podcast that covers topics related to your products or services. Advertising baby diapers on a hunting and fishing podcast might not be the best idea.

• Examine your demographics: the fact that podcast ads allow to target a specific audience is their greatest advantage. However, if you don't know who your target audience is, your campaign may not deliver the results you need.

  You can see how demographic data can influence your advertising here below:

  

• Study the competition to understand which types of podcasts companies similar to yours prefer and if their traffic has increased.

• If you opt for formats with sponsored content or a sponsored guest, ensure that the episodes have the right duration and sufficient space for your brand. There's no sense in inserting a 90-second ad into a 5-minute weather podcast—it would disrupt the content and likely irritate the listeners.

• Consider the number of downloads and engagement rate of a podcast, but don't forget that if a podcast is in the right niche and is growing, you might achieve better results than advertising on a more popular but less targeted one

• Check social media presence: if the podcast is active and has a good engagement rate, you will benefit from it too.

• Ensure that episode sharing occurs with the frequency you want (e.g., every week) and that the producer maintains the schedule. You wouldn't want to end up with an unprofessional host who produces episodes sporadically, perhaps every second month

What to Consider When Creating a Podcast Ad?

As mentioned, to ensure that the presence of an advertisement in a podcast yields a satisfactory return on investment, several factors must be considered:

• Ad format

• Content development of the advertisement

• Placement within the episode

• Type of ad (dynamic or integrated)

• Type of compensation

Let’s now develop all these points in detail.

Ad Format

Native Ads: These are ads created by the company but broadcast by the host within the episode.

Generally, they reflect the podcast's content to ensure more appeal to the audience.

They are best placed in the middle of the episode and typically last 60 seconds. The call-to-action is not aggressive and is framed as an invitation to try.

Example of a native ad:

Host: "You know how important it is to gently hydrate babies' skin, but finding the right solution isn't always easy. Lately, I've been using Baby Skin oil, and it's fantastic. It keeps my child's skin hydrated all day, is light and delicately scented, and is perfect for those like him who suffer from diaper irritation. If you're looking for a natural and highly softening baby oil, I really recommend trying Baby Skin. And if you go to their website and use the code BABY10, you'll get 10% off your first purchase!"

Sponsored Content

In this case, part of the episode content is dedicated to the sponsor.

The advertising segment is inserted as part of the conversation, making it very effective, as it is promoted by the host as a product or service that has earned their trust.

For example, while discussing his trip to Australia, the host might describe in detail how the trekking boots from the sponsored brand accompanied him through the toughest terrains, significantly enhancing the experience.

He then invites listeners to try them or visit the website, and offers a promo code.

Sponsor Guests

The brand pays the host to interview a corporate representative to promote their product or service.

Direct Response Ad

This advertising service has a structure similar to the native ad, but features a direct and more assertive call-to-action. It's crafted by the company and read without personalization.

Example:

Host: "Today's episode is sponsored by TOPMato Tomato Salsa. If you can't give up pasta and pizza and want a five-star tomato sauce, TOPMato is for you. It contains only natural ingredients, is low in calories, and is available in 500 and 1000 gram sizes. Don't miss this opportunity: go to TOPMato.com and use the code HEALTHY20 to get 20% off today!"

Season Sponsorship

When a brand sponsors an entire season of a podcast, the advertisement will be inserted multiple times as a single ad within the episode.

Content of the Ad

The average podcast ad can range from 30, 60, or 90 seconds, depending on its placement and the type of ad chosen.

This might seem quite a short time to make your product sound astonishing and engage the audience, but with the right strategy, you can create an ad that's hits the target and generate amazing results.

Here are some tips. They are not intended for any specific type of ad; you'll need to choose the ones that best fit your format:

• You're writing an advertisement to be inserted in a podcast, not a novel. Therefore: establish the important points, include them in your ad, and don't stray too much. That said, you need to be brief but engaging.

• Stick to the general tone of the podcast, especially if the ad will be read by the host. This will make it more effective.

• Adapt the language to the type of average listener. If you are promoting a mass product, avoid difficult terms; your ad must be understandable to everyone.

• Try to hit the audience with an engaging intro.

• Ensure your advertisement addresses a common question or concern that your product or service can solve. This can engage your audience and spark their interest.

• Highlight the strengths or benefits of your product.

• Specify why your product or service is better among those similar in the same market segment.

• Include promotional codes or other types of offers.

• Conclude with a call-to-action that matches the ad's tone and format.

• Make sure you have respected the standard times for message processing.

• If you are producing the ad also at the sound level, assess the technical part and have others listen to ensure you have produced engaging content.

Example of an ad using the points described above:

Host: "Today's episode is sponsored by Vita Pro. If you have ever wondered how to increase your general health and minimize stress, this is the supplement. Personally, since using Vita Pro, I feel more energetic, concentrate better, and sleep much better. It has truly become a valuable ally for my daily well-being and that of my family. Plus, Vita Pro guarantees 30% more active content compared to similar products. If you also want to stay healthy naturally, visit vitapro.com and use the code VITA20 to get 20% off your first purchase. Don't miss this offer: Vita Pro is the only supplement that keeps its promises. Go to vitapro.com and use the code VITA20 today!"

Placement of Ads

The cost of an advertisement also partly depends on its placement within the episode:

Pre-Roll Ads are inserted at the beginning of the episode. They last about 30 seconds, but the placement guarantees excellent results, as the audience is attentive and focused.

Mid-Roll Ads are those inserted in the middle of the program. Unlike TV commercials, they are very effective, as podcast listeners usually do not stop listening during breaks, and at that precise point, the content of the podcast is fully developed. They can last up to 90 seconds, allowing the ad to be developed in detail.

Post-Roll Ads are instead those inserted at the end of the program. They can last 30 seconds or less and are the most affordably priced. When choosing a post roll placement, keep in mind that part of the audience may leave the podcast before the actual end of the episode, so you might achieve less satisfactory results.

Types of Ads

This is an important factor to consider:

Dynamic Ads:

These ads are pre-recorded and inserted into the episode selectively, to be targeted to a specific consumer target.

These ads are indeed personalized based on the demographic data of the audience. To clarify, if the same episode is shared in the United States and in Mexico, the ad might be different in the two countries.

 Dynamic format allows podcast ads to be updated or replaced after the episode has been published.

This means advertisers can insert timely and relevant ads into both new and existing episodes. Ads that are no longer relevant can be removed and replaced with up-to-date content.

Integrated Ads:

These ads, on the other hand, are permanently embedded in the content and therefore an integral part of the episode. Typically, they are read by the host to provide more relevance and to benefit from the host's popularity. While dynamic ads offer flexibility for the host, integrated ads provide lasting value for the sponsor, as they remain in the episode indefinitely.

The topic can be tricky for those inexperienced in advertising or podcasts, so I've created a summary table to help you decide which ad is best for you:

How to Pay for Advertising in a Podcast

The formulas for monetizing an advertising campaign in a podcast are as follows:

1. CPM (Cost per Thousand): Calculated based on the number of episode downloads. The indicative figure paid for every thousand downloads of a given episode varies between 10 and 25 euros. To simplify, if the episode reaches 10,000 downloads, the return will be €2,500. It's the most common monetization system, as it ensures that the payment corresponds to good visibility. The figure may increase depending on the podcast's popularity.

2. CPA (Cost per Action): Calculated on a specific action that allows promoting the company's marketing objectives. This can be subscribing to a service or purchasing a product, generating leads, downloading an app, or subscribing to a newsletter. In this way, the sponsor only pays when they achieve a result, and they can precisely determine the success of the advertising campaign. The price, similar to a commission, varies based on the value of the product or service purchased.

3. Affiliation involves payment of a commission through a sale generated by a link or discount code.

4. Fixed Payment, or flat rate, is the remuneration for each episode and can vary based on agreements between the podcaster and the company. The amount will be evaluated based on factors such as downloads, host popularity, engagement... but there isn't a real rule.

It’s important to evaluate beforehand how you want to monetize the campaign. According to that, you can opt for the most efficient call-2-action.

To determine if your campaign has been successful, this is what you want to analyze:

• Conversion rate: the number of leads converted into a successful action compared to those generated but not followed through. For example, how many people downloaded the promo code vs how many actually purchased the product.

• Number of unique listeners: this metric defines the number of listeners exposed to your ad at least one time.

• Effectiveness of the call-to -action: this metric can be verified by tracking the results of specific action, which can be determined by the number of promo codes that have been redeemed, the increase of traffic on the web site and the number of items purchased, the amount of new subscribers to the newsletter, the number of visits to the landing page.

• Survey: Surveys can be a practical tool to know your audience better. For example, by asking "How did you hear about us?

It's important to know the analytics of each episode in order to make adjustments and improve the advertising campaign when necessary

What should I expect from my podcast marketing campaign?

Each campaign is the result of unique factors, so I cannot tell you which results you should expect from it,  but I can help with some general metrics

The podcast attribution platform Podsights report in this research from 2023 that the average conversion rate for podcast ads resulting in website visits corresponds to about 1.32% across all industries.

Are you thinking it's not stunning? then know that the equivalent conversion rate for social media (we we calculated as the average click-through rate for Facebook and Instagram ads), is currently 0.90%.

As you can see, choosing a podcast as a channel to promote your products or services could be the winning idea you've been waiting for!

Now you have all the data you need to create an advertisement to be broadcast within a podcast.

By creating a correctly developed and targeted advertising campaign to the right audience, the results will be excellent.

Author's Note:

Have you ever imagined turning your content into a podcast but thought you didn’t have the time or tools to make it happen? Enter PodcastAI, the revolutionary AI-powered software that transforms your blog posts, newsletters, and even news articles into podcast episodes—using your own voice.

It takes care of the entire process, from writing episodes to creating show notes, cover art, and transcripts. But there’s more—PodcastAI publishes your podcast on platforms like Apple and Spotify, creates promotional clips for social media, and even provides a dedicated website for your show.

Whether you’re a solo content creator or a marketing agency, PodcastAI makes it easier than ever to engage your audience and expand your brand without the typical time investment.