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Why You Should Advertise on Podcasts

Podcasts offer a unique marketing opportunity to reach your target audience.

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Written by: Jennifer Dublino, Senior WriterUpdated Oct 17, 2024
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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If you’re an avid podcast listener, you’ve likely encountered advertisements for brands you hadn’t heard of before but now know well. Blue Apron, Squarespace, Casper, Audible and dozens of other brands that needed to generate leads on a budget have become household names thanks to successful podcast advertising. Most of these companies were startups when they began advertising on podcasts and have since exploded in popularity. 

If you don’t have the budget for traditional advertising, podcast advertising may be one solution. We’ll examine why podcast advertising is an effective part of a small business marketing campaign and share tips on getting started.

TipBottom line
If you're starting your own podcast, ways to get your podcast heard include sticking to a defined niche, sharing information about it on social media and implementing SEO best practices for your podcast.

Why you should advertise on podcasts

According to IAB’s U.S. Podcast Revenue study, podcast advertising is projected to approach the $2.6 billion mark by 2026 as more marketers, including behemoths like Amazon, Macy’s and Capital One, invest in it. 

Additionally, according to data from Edison Research, 47 percent of Americans aged 12 and older listen to podcasts at least once a month. Listenership has been steadily climbing since 2014, except for a slight dip in 2022. With those numbers, it’s hard to deny that podcasts are on the rise and can significantly impact consumer choices. 

If you’re considering getting into podcast advertising, weigh the following seven benefits. 

1. Podcasts cover a wide variety of subjects. 

Podcast advertisers can choose from a wide variety of shows and content to find podcasts compatible with their companies and products. For example, if you have a nursery or sell gardening products, you could advertise on a gardening podcast. If you’re in the tech field, you could advertise your new software on a technology podcast. A business services company might want to advertise on inspirational podcasts for entrepreneurs or one of the best business podcasts

Did You Know?Did you know
According to Nielsen's Podcasting Today report, 52 percent of marketers plan to increase their podcast advertising trend — an example of how technology is changing online advertising.

2. Podcasts provide a high degree of listener trust.

Podcast advertising is unique because listeners form relationships with podcast hosts and trust what they promote. “Over time, listeners often feel like they truly know the hosts, considering them friends they’ve never met,” explained John Sampogna, CEO and co-founder of Wondersauce. “This intimate connection translates into trust, making podcast ads highly impactful, especially for small businesses.”

Another IAB study found that listeners respond better to ads podcast hosts read than preproduced ads. Host-read ads are responsible for 55 percent of generated revenue. “Host readouts are particularly effective because hosts can tailor the advertisement in a way that resonates with their audience, delivering the message with authenticity and personal touch,” Sampogna noted.

Listeners typically welcome hosts’ personal takes and banter on a product or service. For this reason, brands often send podcast hosts product samples so they can discuss their experiences in depth. Consumers are more likely to respond to sincere and authentic conversations about a product than prewritten copy and talking points.

FYIDid you know
To encourage podcast listeners to take action, provide them with exclusive promo codes and discount offers. Coupons drive engagement and retention and can help you gauge your podcast ad's effectiveness.

3. Podcast advertising is memorable.

Podcast listeners are highly engaged with podcast content. For this reason, your ad will be memorable, especially if it falls in the middle of the broadcast. The Nielsen study found that podcast ads had an average 70 percent aided recall rate. 

Additionally, podcast listeners usually tune in while they’re doing something else, such as driving, cleaning or walking, so they are unlikely to skip over ads.

4. Podcast advertising is effective.

Podcast advertising can help you generate more sales leads that are friendly or warm. Warmer leads are more likely to purchase your product or service. 

Podcast leads are similar to those of affiliate marketing or word-of-mouth advertising. According to Acast data, podcast lead conversion rates are better than other channels, with 64 percent of listeners giving their full attention to the podcast and 95 percent of regular listeners taking action after hearing an ad. There was also an increase in visitors who purchased from an advertiser’s website after hearing a podcast ad.

5. Podcasts offer extended reach and repetition.

When you pay for an ad on a podcast episode, it’s usually a one-time charge. However, you’re likely to get more for your money because podcast ads are on episodes permanently and will be heard by any listeners replaying those episodes or binging the series in the future.

6. Podcasts present less competition.

There are thousands of podcasts out there, all competing for advertising dollars. This can lower the advertising rate and allow those who advertise on podcasts to stand out from the competition. You’re less likely to be drowned out by a multitude of competitors.

7. Listeners don’t mind podcast ads. 

Perhaps the biggest benefit of podcast ads is that listeners don’t mind them and may even enjoy them. According to Acast data, 68 percent of podcast listeners think podcast ads stand out and 54 percent consider them engaging. Furthermore, three-quarters of respondents purchased or considered purchasing something advertised on their favorite podcasts. This means they’re more likely to see the offering as memorable or enjoyable. 

Did You Know?Did you know
Podcasts often have corresponding business newsletters that listeners can sign up for via email to learn more about the subject or delve deeper into an episode.

How to get started with podcast advertising

Fortunately, getting started with podcast advertising is straightforward. Here’s how it works:

  1. Think about what you want to advertise: Advertising an exclusive deal for podcast listeners will make your ad more effective, especially if you’re a relatively unknown company.
  2. Create an ad: You can make a preproduced ad for the podcast to insert at the beginning, middle or end or you can leave it up to the podcast host to advertise your company. In this case, provide a few major talking points you’d like them to mention.
  3. Find a podcast: Baber Khan Javed, chief communications officer at Z2C Limited, advises selecting a successful podcast whose content aligns with your product’s or service’s target audience. “The success of a podcast depends on reviews, downloads, the number of listeners, website traffic, average listening time and the podcasts’ rating,” Javed explained. “Make your selection based on the factors and variables that matter to you the most.” Several services can help you find the right podcast to advertise on. 
  4. Decide where in the podcast you want your ad to be: Preroll ads appear before the podcast, midroll ads are in the middle and post-roll ads are at the end. Midroll ads garner the most attention because listeners are already engaged in the content, but they are more expensive.
  5. Book your ad: Draw up and agree on a contract for the advertisement, detailing how long you want to advertise, what the ads need to cover and how much you’ll pay. Advertising prices on podcasts are generally quite affordable (see more information on costs below).
  6. Track your results: Using a unique promo code makes it easy to identify the new business resulting from your podcast advertising. Calculate your podcast marketing return on investment to determine whether you want to continue advertising on that podcast.
TipBottom line
To find a podcast for your advertising, consider a service like SXM Media (formerly Midroll), which works with big advertisers and popular podcasts. Many podcasts are part of larger networks, such as Earwolf, NPR and Carolla Digital, so you can also contact these parent companies for advertising purposes.

Cost of podcast advertising

Podcast ad networks charge varying fees depending on podcast popularity, ad length, the number of spots you’ve purchased, campaign length, ad placement and more. Rates will also vary by the podcast network and specific audience targeting. Here’s some notable information about podcast costs: 

  • CPM: Many podcasts use the CPM pricing model. CPM stands for “cost per mille” (meaning cost per 1,000 listeners). The CPM rate can vary based on factors like the podcast’s audience size, engagement, content niche and ad placement (preroll, midroll or post-roll).
  • CPM ranges: You may spend as little as $15 to $18 for a 30-second spot or as much as $40 for a 60-second spot, depending on various factors. A podcast’s popularity or how well-established it is can influence the CPM. For example, more niche podcasts might charge lower rates, while top-tier shows can command higher fees.
  • Example CPMs: Podcast host Libsyn says the average CPM for a 60-second spot on its platform is $21.37. Podcast ad network Podchaser offers various payment tiers that differ by ad type and a podcast’s listener numbers. For example, a 25-second preroll ad might cost $15 for every 1,000 listeners, a midroll 60-second ad could average $30 CPM and a 25-second post-roll ad would only cost around $10 CPM. 
  • Minimum ad spends: Some popular podcasts also charge minimum ad spends. For example, BiggerPockets, a top real estate podcast, requires a minimum spend of $5,000 per podcast campaign.
Did You Know?Did you know
According to Influencer Marketing Hub, the industry average podcast advertising cost is $18 per 1,000 listeners for a 30-second ad and $25 per 1,000 listeners for a 60-second ad.

Access an engaged audience with podcast advertising

Podcasting is a marketing opportunity that’s been overlooked since its inception but is finally catching on. As the medium grows, so will the advertising industry that surrounds it. Adding podcast advertising to your marketing plan lets you capture a dedicated audience through popular podcasters and unique marketing tactics.

 

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Written by: Jennifer Dublino, Senior Writer
Jennifer Dublino is an experienced entrepreneur and astute marketing strategist. With over three decades of industry experience, she has been a guiding force for many businesses, offering invaluable expertise in market research, strategic planning, budget allocation, lead generation and beyond. Earlier in her career, Dublino established, nurtured and successfully sold her own marketing firm. At business.com, Dublino covers customer retention and relationships, pricing strategies and business growth. Dublino, who has a bachelor's degree in business administration and an MBA in marketing and finance, also served as the chief operating officer of the Scent Marketing Institute, showcasing her ability to navigate diverse sectors within the marketing landscape. Over the years, Dublino has amassed a comprehensive understanding of business operations across a wide array of areas, ranging from credit card processing to compensation management. Her insights and expertise have earned her recognition, with her contributions quoted in reputable publications such as Reuters, Adweek, AdAge and others.
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