How Podcast Advertisements Deliver the ROI Your Clients Want

BY Rachel Cagle
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Will the ads you’re considering give your client the ROI they want/​expect/​need? That’s the most important question to ask when planning upcoming ad campaigns. When thinking about ad media types that provide stellar ROI, your client’s mind probably goes straight to their old reliables, like email or digital ads. If they’re skipping podcast advertisements, they’re overlooking an ad format that can easily provide the ROI they’re hoping for.

How Podcast Advertisements Deliver the ROI Your Clients Want

The Power of Audio Ads

Before we delve into podcast advertisements specifically, let’s talk about the effectiveness of audio ads in general. According to a report by AdAge, 41% of audio ads generate brand recall. That’s higher than the 38% norm for other ad types. Additionally, “the average impact on brand choice metrics was a positive 10% for audio vs. a 6% norm for other ads.” And perhaps even more important: audio ads have an average of 10,216 attentive seconds per thousand impressions. The norms of other media types average only 6,501 seconds.

So, if your client is hoping to get and hold consumers’ attention and help them positively remember the brand, they need to invest in more audio ads. Like podcast advertisements.

Podcasts Get Attention

Podcasts are booming right now and have been for years. It seems impossible to go through conversations with friends, family and coworkers without them bringing up a podcast they’re addicted (or at least currently listening) to. Each show’s popularity makes it easy for podcast advertisements to reach hundreds if not thousands of people. And according to AdAge, consumers are actively listening to podcast ads.

An important aspect to remember is that your client should have their ads read by the podcast’s host(s) whenever possible. Why? “Ads read by podcast hosts performed better than traditional audio ads in podcasts at moving the needle on brand preference.”

Podcast Ads’ Return on Ad Spend (ROAS)

We talked concrete numbers in a previous SalesFuel article on podcast advertisements, based on research from Acast, when it comes to ROAS. “In 2020, ROAS was $2.4 for every $1 spend 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 on $0.50 to $0.99.”

That data makes podcast ads more likely to have an ROAS of over $6 than social media, online video, cinema, online display, and TV ads.

Placement is Key

The success of your client’s podcast advertisements will partially depend on placing them on the right shows. According to a previous SalesFuel post, based on research from Pew Research Center, podcast listeners tune in:

  • To learn: 88% of podcast listeners listen for this reason
  • For entertainment: 87%
  • For something to listen to while performing a task: 81%
  • To hear other peoples’ opinions: 71%
  • To stay up to date on current events: 64%
  • For encouragement or inspiration: 59%

To fulfill those goals, consumers turn to shows about:

  • Comedy: 47%
  • Entertainment: 46%
  • Pop Culture: 46%
  • The Arts: 46%
  • Politics and Government: 41%

Do any of those motivations or genres connect with the products/​services your client wants to advertise?

Learn More About Podcasts and Your Client’s Target Audience

How likely is your client’s target audience to respond to podcast advertisements? What kind of shows are they interested in? What types of products/​services do they plan to pay for within the next year? You can find all that information and more on their audience profiles on AudienceSCAN on AdMall by SalesFuel.

Photo by Good Faces