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Podcasts offer a unique marketing opportunity to reach your target audience.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Fortunately, getting started with podcast advertising is straightforward. Here’s how it works:
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:
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.