n recent years, podcasts have become increasingly popular, and, as a result, many businesses are seeking opportunities to harness this medium for advertising. In fact, industry expert Influencer Marketing Hub predicts that podcast advertisement revenue will hit $2 billion by the end of this year and reach $3 billion by 2025.
Like most things, podcast ads cost money. Several factors contribute to podcast advertising costs including ad length, ad placement, and the popularity of the podcast. Podcasts with huge followings will charge more to run podcast ad campaigns.
This article will cover the typical cost of podcast advertising and the contributing factors. If you are interested in advertising on podcasts, read below to get started.
Benefits of podcast advertising
A study by Edison Research showed that in 2021, just over half of the US population had listened to a podcast, and about 116 million people had listened within the month. That’s a lot.
Some benefits of podcast advertising include: saving money on advertising costs, increased brand awareness, boosts in sales and web traffic. Think about it, a loyal audience within your target market that highly values the opinion of their favorite podcaster.
Podcasts are incredibly niche, so when you find a podcast with the same target audience as your brand, you can cut down on market research costs. Without a podcast, you may have only been able to reach a specific market in your region based on your advertising budget. Podcasts present your brand to a larger audience with an authoritative source to back it.
Factors affecting podcast advertising cost
So how much does podcast advertising cost? Your total campaign cost will depend on several factors, including placement, campaign length, and the sponsorship model.
Let’s take a closer look at some factors and how they can affect the cost of podcast advertising.
Advertisement placement and styles
When choosing ad types, there are two categories to consider: advertisement placement and advertisement style. Depending on the placement and the style, some ads may be pricer than others. Let’s break down each category.
Like any other advertisement campaign, placement plays an important role in determining the cost and the success of your ad.
Here are three podcast advertisement placements you should know:
- Pre-roll. These ads play towards the beginning or before the podcast. At 15 to 30 seconds long, they are often the shortest but are still effective since listeners are anticipating what is to come in the episode. The average rate ranges between $15 – $20 per ad.
- Mid-roll. These ads play during the middle and are often the longest at one to three minutes. Since listener engagement is at its peak, they are the most expensive and can run for about twice the cost of a pre-roll ad.
- Post-roll. These ads play after the podcast or towards the end and are between 30 to 60 seconds. Costing an average of $10, these are the least expensive since the lowest engagement rate is often at the end.
End placement can be an effective means of applying your CTA (call to action). The last thing listeners hear will be easiest to remember.
This refers to the presentation of the ad. A business is responsible for supplying the advertisement for the podcaster to use. There are two main styles of podcast advertising.
- Radio-style. Radio-style ads, as the name suggests, are read by a paid actor and supplied to the podcaster. Often companies use a third-party advertising company to create these ads. The benefit here is that you have full control of length and wording.
- Host-read. This is the most popular form of podcast ad because it’s often the most effective. The host reads the ad and can give a personalized experience of your product or service. Here, a podcaster personalizes the pitch like a friend giving a referral.
Depending on the size of the podcast and your business, some payment models may work better than others. Once you pitch to a podcaster, consider which sponsorship model you may want to use. Ultimately the model and rate will be decided between you and your podcaster as you develop a contract.
Here is a list of the three models you can use for your podcast advertising deal:
CPM – Cost Per Mille
This is one of the most common models and is often used for large podcasts with thousands of downloads and listens per episode. With this model, you pay the podcaster for every 1000 listeners (“per mille”).
If a podcaster with a listener base of 200,000 charges $26 for a 60-second mid-roll ad and $15 for a pre-roll ad, it will cost you $5,200 for the mid-roll spot and about $3,000 for the pre-roll spot.
This is another common model where you pay a fixed rate to promote your product. For smaller companies, this may work best as it allows you to always know the exact amount you’re paying. When creating an advertising budget, it’ll be easier to factor it into monthly expenses.
ArdorSEO gathered data from different podcast niches globally. While the exact amount will vary between podcasters, here are some prices from American shows:
- B2B Growth Show, a popular marketing podcast, gets about 160,000 downloads monthly and charges between $150 and $600 for ads.
- Mixergy, another marketing podcast, has package deals starting at three episodes for $5,250. Advertisers can choose between 30-second or 60-second ads.
- The Joe Fairless Podcast, a real estate investing show, will slot ads from 15 to 120 seconds long for a monthly rate of $7,500 to $8,000.
Affiliate or CPA – Cost Per Acquisition
If you have a link, this model could increase organic traffic to your website or social media pages. The podcaster will mention a link and include it in their description and then you pay them based on how many sales you get from link clicks.
According to a survey we took of our Podbean listeners, 61% of listeners purchased a product or service because they heard it in a podcast. If you want to track sales, this is the best option.
Find a podcast within your niche
Before you can decide on any contracts or payment plans, you need to find a podcast that fits your niche. While some platforms allow you to narrow down your search, this process can be tedious, especially if you are relatively new to the industry of podcasting.
How can you find a podcast that will suit your needs and your brand?
To find a podcast within your niche market and location, try using Podbean’s Podcast Monetization platform. While podcast ads are more affordable than traditional print or TV ads, they can still be expensive for start-ups. If you run a small business, Podbean can help podcast advertising cost less.
Podbean’s platform is affordable and simple to use, and with over 650,000 podcasters to choose from, you can be sure to find the best podcast to advertise your business.
Podcast ads are a great way to build traffic and promote your business. If you’re looking for a platform to advertise your business quickly and easily, Podbean’s monetization platform may be the tool for you.
To try Podbean’s marketplace solution and get the best out of podcast advertising, sign up as an advertiser today.