Podcasts are being listened to by people everywhere, all the time. The amount spent on podcast advertising by businesses is expected to reach half a billion dollars this year.
That’s some serious coin! Clearly, you don’t want to overlook this marketing opportunity.
So, what’s the average podcast advertising costs you could expect to pay?
The industry average costs for podcast advertising are:
- $15 for 10 seconds of ad time CPM
- $18 for 30 seconds of ad time CPM
- $25 for 60 seconds of ad time CPM
(CPM is the cost per thousand impressions)
For example, a podcast with 10,000 listeners will cost you $150 for a 10-second ad spot.
There is a bit more you need to know about the cost and options available to you, which will be explained below. Keep reading for more info.
The Cost Of Podcast Advertising
Let’s dive into what the current average costs are for podcast advertising.
AdvertiseCast, which lets you run ads on over 1,700 podcasts, released the following figures as the industry averages for podcast advertising:
- $15 for 10 seconds of ad time per thousand impressions (CPM)
- $18 for 30 seconds of ad time per thousand impressions (CPM)
- $25 for 60 seconds of ad time per thousand impressions (CPM)
The above rates are for CPM, which means, for example, that a podcast with a10,000 listener audience will charge about $150 for a 10-second ad spot. These prices will also vary depending on where you place them in the podcast.
The Pre-Roll (beginning of podcast) may have a different cost to the Mid-Roll (middle of the podcast) and the Outro (after the podcast ends) will have different costs, again.
You can easily find out how much to budget for podcasting advertising once you know how many listeners a particular podcast has that you want to advertise on.
I suggest looking at smaller podcasts if you’ve got a small budget. Also, you can keep the ads short and concise. Make every second packed with engagement and information to get the most out of your budget.
It can be challenging to figure out how and where to spend advertising dollars for maximum return on your investment. After all, you want to make sure that you’re capturing the attention of the right customers.
When you advertise your business or brand on a podcast, you are definitely going to get a better ROI (Return On Investment) when you advertise on the right podcast for what you are offering or promoting. Try and keep it relevant.
It’s also worth pointing out here that some podcast ads providers offer different services so its best to check a few and find what works best for you and the budget you have to work with. We go over some different types of podcast advertising and their costs, below.
Different Types Of Podcast Advertising
There are three primary options you have for advertising on a podcast. You can reach out to an individual podcast directly and advertise that way, you can contact a podcast network, or you can sign on with a podcast advertising network.
I’ll go over these three options below so you get a sense of the estimated costs and what sort of results you should expect from each.
#1. Individual Podcasters
Working directly with an individual podcaster could cost upwards of $50 per podcast episode. Obviously, this cost could be vastly different depending on the podcast type and popularity. You will not know for sure until you reach out to the podcaster.
This option could well be the most cost-effective type of podcast advertising. It’s great because you work directly with the podcast host. This can lead to better deals being negotiated.
If you niche down and find a podcast that matches your business or brand, then your ad dollars are going to have a very handsome rate of return. Also, you get to start a working relationship that can keep going after your first ad campaign is over. This could be massively valuable to you in the long run.
There are a few downsides to working directly with a podcast though. For one, it can take some time to find that perfect match. You need to do all the wheeling and dealing with them until you (hopefully) come to an agreement. Also, if the podcast host isn’t that well-versed in audio production, the ad can end up missing the mark in regard to what you were hoping it would sound like.
#2. Podcast Networks
When you work with a podcast network, you can expect the costs to begin at around $500 per quarter.
A podcast network gives you access to a wide range of podcasts that can match your niche. Podcast networks can boast much larger audiences than single podcasts and can be a way to stretch your advertising dollars.
Just like working with a podcaster directly, you will probably be speaking and dealing with one person. Often, this can be the owner of the podcast network. There won’t be any middlemen.
You can experiment with different kinds of podcast shows featured on the podcast network to see whether one podcast delivers a higher ROI than another. Once you find a podcast with a receptive audience to your ads, you can increase your budget and look for similar podcasts with similar audiences, also known as scaling up!
A disadvantage of working with a podcast network is that you may end up spending a lot of money on ads (requires a bigger budget). Also, sometimes the podcast selection is too broad and not relevant to your ads.
If you’re worried about your ad creativity being stifled, you may want to forego working with a podcast network. Also, your ad may end up not being the only one run on a podcast if it’s a big podcast network which means more competition.
#3. Podcast Advertising Networks
Prepare to spend the big bucks when running ads through a podcast advertising network. It can cost you up to five-figures to start. Like most things though, you get what you pay for.
With a podcast ad network, you’re going to have access to a massive amount of podcasts without having to contact every individual one. While the ad spends may be high, it is a fixed rate, so you know what you will be spending, as well as how many listeners will hear your ad.
A podcast advertising network will also give you some data on your ad campaigns so that you know how they are performing. You will be working directly with a knowledgeable and experienced salesperson who will help you develop a successful ad campaign.
On the flip side, you will obviously need a big budget for this from the start. Also, while your ad may be heard by a lot of people, the audience may be too broad for your ROI to be worth it. Best for ads targeting a broad audience.
Podcast Ads Terminology
When looking at podcast ads, you may see some unfamiliar terms pop up. So here we go over some of them to help you understand them.
The following terms are often used in the world of podcast advertising. Here are the main ones you should be familiar with.
- Pre-Roll – Ad that is mentioned at the start of a podcast
- Mid-Roll – Ad that is mentioned in the middle of a podcast
- Outro – The final words spoken on a podcast. Also an opportunity to share a call to action
- Offer Code – Coupon code provided by a podcast host to their audience that tracks ad campaign conversions
- Native Ads – Ads that match the platform they are delivered through
- Podcatcher – Platform or software used for playing a podcast
- Direct Response – Marketing or ads that can be easily measured and tracked, such as a URL or Offer Code
- CPM Rate – Stands for “cost per mille” meaning how much an ad costs per every one thousand listens
- CPA Rate – Stands for “cost per acquisition” meaning how much it costs to acquire a new customer received from an ad.
I can also recommend listening to some podcasts (with ads) related to something you are interested in. This can help you to become familiar with podcast ads and how they are formulated, and inserted into podcasts.
You can search on sites like PodBay to find popular podcasts that you might find interesting or entertaining. Listen to a few podcasts and see how the ads fit in, to get some ideas.
Podcasts are a great way to promote your business or product in a way that you may not have considered before. This is a fast-growing marketing strategy that can end up paying off big time for you, especially if you find a podcast within your niche. You can read more about niche selection in this article.
Now that you know the average podcast advertising cost, you can start budgeting out how much you will need to successfully market your business or product, and do so while receiving a high return on your investment.
Thanks for reading and good luck with your podcast ads.