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The Evolution of Podcast Advertising

The podcasting industry has experienced extraordinary growth over the past few years, creating new opportunities for the advertising space. 

In the third quarter of 2023, it was reported that 32% of adults in the UK listen to podcasts at least once a week. This provides new and unique options for brands to capitalise on and reach their target audience in a relatively unexplored environment for many. 

 

The Rise of Dynamic Ad Insertion and Podcast Advertising

Traditionally, podcast advertisements were ‘baked-in’ to the individual episode, so the same ad would play for everyone, no matter where you were, or when you listened. This means if you downloaded an old episode, the ad that would play would be from the time of release, and not current. 

Over the past few years, the industry has seen a shift from baked in ads to dynamic ad insertion (DAI), which now accounts for 90% of podcast ad sales.

Dynamic ad insertion allows brands to develop more targeted and timely campaigns, reaching unique audiences with bespoke creatives, and ensuring even if you’re listening to an older episode, you’re still served an ad from the current day.

 

Types of Podcast Advertisements

Alongside the way advertisements are inserted into podcast episodes, the types of ads brands can choose from also vary. There are a few popular ad formats in the industry right now:

  • Host read – Advertisements that are voiced by the podcast host. These are often personalised to fit the style and tone of the podcast, so they appear more authentic to listeners and are endorsed by the host themselves.
  • Spot ads – Advertisements that are typically voiced by the advertiser. These are often shorter than host read ads, and are dynamically inserted into episodes, similar to Radio.
  • Sponsored content – Advertisements that are editorialised to fit more naturally into the original content, either as a branded segment or episode, with a less obvious ‘ad break’ than other formats. This form of advertising is beneficial when the podcast audience heavily overlaps with the audience the advertiser is looking to reach.

 

Measurement and the Podcast Landscape

So you’ve chosen how you want your advertisement read and inserted into a podcast, but how do you know if it’s actually driving sales and conversions? Measurement is key, so brands can optimise their strategies for success.

There are different metrics that brands can use to measure the effectiveness of podcast ads, beyond that of standard impressions and reach. 

Through pixel placements on site, advertisers are now able to measure more than ever, looking at incremental visits to site post-exposure to a podcast ad, all the way to incremental purchases that have taken place after the user hears the content. This now comes as standard for many podcast advertising providers that have partnerships with measurement platforms.

 

Top Tips for Running Podcast Ads

Clearly, there are so many options for brands who want to run podcast ads, so it can be confusing to know where to start. 

Here are a few simple takeaways for running an effective podcast advertising campaign:

  • Know your audience – understanding the demographics of podcast listeners and how your target audience matches up with this is key. Do not expect your audience to only listen to content they are in the market for or the vertical that you are, related interests are key.
  • Choose a show and message that resonate – select a show or target audience that lines up with your audience and brand values, and make your message relatable, whether that’s through a host-read or a spot ad, making sure your UPSs are highlighted is essential. 
  • Measure your success – continue to monitor how your campaign is performing, so you can optimise if necessary to achieve your campaign objectives.

For brands looking to implement podcast ads into their advertising strategies, Tug’s Programmatic & ATL Account Director James Kirwan shares his top tip: 

“With all the targeting and measurement capabilities that now come with podcast advertising, ensure you are using them to their full potential, and have done your audience research before entering the space,” he says. 

“Understanding what the right opportunity is for your business and your budget is key, looking primarily at what you would want to achieve (i.e. awareness, visits, acquisition), and making sure you can measure that in the first place.”

In this evolving industry, there’s no doubt that there are so many opportunities for brands looking to explore the podcast advertising space. To achieve the best results for your campaign objectives, be sure to do your audience research and create a tailored campaign that will resonate with your target audience.