If your client is still on the fence about podcast ads or not utilizing them as much as you think they should, maybe it’s because they’re unaware of current podcast advertising rates. They’re only getting better with age. Here’s what you and your client need to know, according to research from Acast.
Have You Shared These Podcast Advertising Rates with Your Clients?
Podcasts’ Return on Ad Spend
One of the most important podcast advertising rates that your client should be familiar with is their current return on ad spend (ROAS). Over the past few years, podcasts’ ROAS has continued to climb. In 2020, it was $2.4 for every $1 spent on podcasting. Now, according to Acast, most podcast marketers have an ROAS of between $4 and $6 per $1 spent on ads:
- $4-$6: 37%
- $2-$4: 30%
- $6+: 20%
- $1-$2: 10%
Only 3% of marketers who utilize podcast ads say that every $1 they invest in podcast ads returns only $0.50 to $0.99.
Additionally, according to Acast, podcast ads are the most likely to have an ROAS of $6+ compared to other media studied, including:
- Social Media: 16%
- Online Video: 16%
- Cinema: 16%
- Online Display: 15%
- TV: 15%
So, if your clients are looking for media to invest in with high ROAS, show them these podcast advertising rates.
Of course, ROAS of $6+ don’t just happen. Your client needs to know and take action on the best practices for better results.
Invest in Smaller Shows
You and your client may think that placing their ads on larger shows is a good plan. After all, the larger the show, the more consumers tuning in to be influenced by the ads, right? Well, Acast’s research disagrees.
Acast’s research shows that “smaller podcasts have a higher percentage of listeners saying ads on the podcast are influential and are welcoming of more ads.”
Here’s the data:
- Smallest Shows: 24% of listeners would welcome more ads and 20% say ads are very influential
- Small Shows: 19% would welcome more ads and 22% say ads are very influential
- Medium-Sized Shows: 14% would welcome more ads and 18% say ads are very influential
- Large Shows: 10% would welcome more ads and 17% say ads are very influential
- Largest Shows: Only 9% would welcome more ads and 16% say ads are very influential
So, yeah, larger shows give your client’s ads a larger audience. However, it’s the smaller shows that have audiences most likely to take action based on the ads they hear.
Try Business Podcasts
While it’s always a good idea to place your client’s ads in places that are relevant to what’s being advertised, there are a few genres that have the overall best podcast advertising rates. According to Acast, the podcast genres that generate the strongest ROAS are:
- Business: 38% of podcast marketers agree
- TV and Movies: 16%
- Sports: 9%
- Society, Arts and Culture: 6%
- Comedy: 5%
- Travel: 5%
If your client’s ads are related to any of those genres, they’re in luck!
Set Podcast Ad Frequency to 6–9
The frequency of your client’s podcast ads could also effect podcast advertising rates. According to Acast the optimal frequency of ad exposure that generates the highest ROAS is between six and nine. A frequency of between two and five is close behind, while 10+ and just one are left in the dust. Plan your client’s podcast ad frequency to between two and nine and they’ll be just fine.
Podcasts and Your Client’s Target Audience
These podcast advertising rates are worth nothing if your client’s target audience doesn’t listen to podcasts. Chances are they do. However, if you want to make sure they’re worth your client’s budget, check out their target audience’s profile on AudienceSCAN on AdMall by SalesFuel. There, you’ll be able to see what percentage of the audience took action after hearing podcast ads within the last year, as well as they types of programming they’re the most interested in.
Photo by Steinar Engeland