When and Where Are People Listening?
In 2019, research conducted by CivicScience revealed that one in three Americans aged 13 or older (32%) listen to podcasts daily, while 39% tune in at least weekly. Most people prefer to listen at home (49%), but smartphones play a significant role in podcast consumption, enabling listening in the car (22%), at work (11%), and even while on the move (3%), according to data from Podcast Insights.
While podcasts are an excellent source of entertainment and information, they’re also driving consumer action. The same CivicScience study highlighted that 22% of podcast listeners made a purchase after hearing a podcast ad. For marketers, this translates to a golden opportunity to allocate a substantial portion of their digital ad budget to podcast advertising.
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Types of Ads That Run on Podcasts
Podcast advertising offers a variety of formats to suit different marketing goals. Ads can either be read by the host—providing a more personal touch—or delivered as pre-recorded content, similar to traditional radio ads. However, unlike radio, which bombards listeners with numerous ads, podcasts typically feature fewer than three ads per episode. This integration makes podcast ads feel more natural and valuable to listeners.
Here are the three primary ad placements in podcast episodes:
- Pre-roll: A brief 15-second ad at the beginning of the podcast.
- Mid-roll: A more detailed 60-second ad placed mid-episode.
- Outro: A final call-to-action during the closing words of the podcast.
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Why Podcast Advertising Works
The Interactive Advertising Bureau (IAB) reported that podcast advertising revenue neared $678 million in 2018, with projections exceeding $1 billion by 2021. What makes podcast advertising so effective?
- High Purchase Intent: Podcast listeners frequently buy products featured in ads, driven by trust in their favorite hosts.
- Enhanced Engagement: Podcasts cultivate loyal audiences who are highly receptive to the host’s endorsements.
The secret lies in the unique connection podcasts foster. Listeners trust their hosts and are often open to products or services the hosts personally endorse. This level of trust, combined with an intimate and engaging medium, makes podcasts one of the most effective advertising channels available today.
Types of ads that run on podcasts. With podcasting, there are a few different ways to advertise. Ad content can be read by the host during the podcast, or ads can be delivered to the podcaster intact, like with radio advertising. However, unlike radio, where listeners are spammed with multiple ads throughout the broadcast, podcasts generally have fewer than three ads per episode, weaving them into podcast content more naturally, making them intrinsically more valuable. Basically, there 3 places to showcase an ad during a podcast.
- Pre-roll (15 seconds at the beginning of a podcast)
- Mid-roll (60 seconds in the middle of a podcast)
- Outro (during the last few words of a podcast, as a final call to action)
Why podcast advertising works. The Interactive Advertising Bureau estimates revenue from podcast advertising last year approached $678 million. By 2021, they’re projecting this amount will break $1 billion. Why do podcasts deliver effective results?
- Listeners buy products from podcast ads
- Podcasts drive engagement
It’s simple really. Podcasts are engaging mediums for delivering messages. People trust their host and are generally receptive to the ads he or she personally decides to endorse.
