It seems like everyone is starting a podcast these days, and there is a good reason for it. Not only can running a podcast be therapeutic, but with the proper advertising, it can also be very lucrative.

According to Statista, the number of people who listen to podcasts has more than doubled in the previous ten years, with no indications of slowing down. When traditional marketing channels are becoming less effective, podcast advertising provides a viable marketing channel for advertisers. Podcast advertising is appealing since it allows advertisers to reach out to a growing audience. Podcast listeners are typically interested in the content and listen attentively, making it a very successful tool for marketers to communicate with their audience.

Although there are no explicit advertising regulations for podcasts, context is critical, and advertisers must understand how to apply the rules in this environment. By being read by the podcast host, podcast adverts may appear to be part of the editorial material. They can also take the shape of a more traditional pre-produced ad that appears as "paid-for space" in the show.

Format and disclosure of ads

There are three sorts of commercial placements:

●  Pre-roll (at the beginning)

●  Mid-roll (middle, frequently as an intermission)

●  Post-roll (at the end)

Alternatively, the entire podcast could be a product or service promotion.

When an ad appears in a podcast, it will be evident in some contexts. Sound effects, tone, and topic matter are all likely to help distinguish the ad from editorial content, but it's not enough for consumers to recognise that a part of the podcast is different; they must know that they're listening to an ad. Assume the ad is similar to the podcast's editorial feature (i.e. it is engrained so closely into the content that the listener cannot tell it is a commercial message). It may not be obvious that the content is an ad in that situation. This is more than likely where the presenter reads out the ad.

When a segment of a podcast (or the entire podcast) is not immediately apparent as an ad, ASA guidance states that the most reliable strategy to ensure that it is obvious is to include an explicit disclosure at the start of the podcast. The notion is that consumers shouldn't discover they're listening to an advertisement after the fact. It should be clear from the outset and appear early in the podcast, not halfway through or at the end.

If most of the podcast content is truly editorial yet incorporates advertising, the advertising must be clearly differentiated from the editorial content. This includes commercial breaks and product references from affiliates. Consumers must be able to determine where the ad section begins and ends without difficulty. Advertisers should also be aware of how information is shown on various devices. To summarise, there should be no room for

Precise targeting

We've got some exciting news for you! 75% of podcast listeners not only pay attention to advertising but also take action after hearing them (source: Spotify). Podcasts can provide highly targeted material and attract a highly engaged audience, which is one of their benefits.

According to Edison Research, podcast listeners are 54% more inclined to consider businesses mentioned in their favourite episodes. Furthermore, Millennials listen to podcast episodes in more significant numbers than any other generation and prefer this new form of advertising to more traditional channels. This age group is also technologically sophisticated and more likely to respond to advertising. According to Comscore, this demographic's higher education and income make them more likely to be earlier adopters of brands such as movies, gadgets, and other consumer packaged goods (makeup, food, clothes, household products, etc.).

Other advertising platforms, such as websites and banner ads, have become less common as podcasting has grown in popularity. The typical website's display ad click-through rate, for example, is merely 0.16% (source: Forbes). Ad blockers have made it so that fewer adverts reach their intended audience. Advertisers are aware of the decreasing returns on these channels and are willing to pay more for more effective commercials.

The relationship with the audience is crucial. GirlBoss, for example, hosts several successful podcasts that are almost entirely focused on women's interests and have a predominantly female audience. An advertisement targeted towards male consumers (such as a razor club) may not be the ideal fit for a GirlBoss podcast, despite its large following. Don't try to force your ads into places where they don't belong based merely on audience size. On the other hand, before you start spending money, be sure you're targeting the right group, but don't make any assumptions about buying habits that are too subtle. It's all about creating an emotional connection with the audience. The message will be diluted, and credibility will be lost without it.

Fortunately, since the practice of engaging podcast listeners to influence consumer behaviour has become increasingly popular in recent years, podcast holding platforms like Apple and Spotify have incorporated extensive analytics systems. They aid in the identification of audience behaviour and the tracking of user metrics. Advertisers have had more options to perfect their podcast advertising methods thanks to new tools and better analytics. Now that you've figured out how to discover the ideal listeners, it's time to figure out how to attract their attention.

How to buy ad space?

You have a few alternatives once you've decided on a message to distribute. They all have advantages and disadvantages, but there are a few things to keep in mind.

Doing your campaign might give you more control over ad placements and provide you with greater negotiating power when it comes to pricing. However, depending on how many podcasts you want to advertise on, the process can take a long time. Individual podcasters will not be able to use targeted ad placement or dynamic ad insertion. Because of this

limitation, most advertising is host-read only, with no option to edit the ad's content later. This strategy can work if you want to get your message out to a few select podcasts or run a brief ad campaign to sell a book or online course, for example. However, if you want to run a more extensive campaign, an ad network is undoubtedly a better choice.

The majority of the work in discovering podcasts wishing to sell ad space is done by podcast networks, saving advertisers a lot of time. However, access to a network's resources is costly, and advertisers are restricted to the programmes available on that network. Dynamic ad insertion, which allows marketers to develop time-sensitive commercials that can be swapped out and updated quickly, is also available to networks. On the other hand, working with a network is usually a better fit for more prominent businesses with the financial means to invest due to the upfront cost commitment.

Final thoughts

When you think about it, podcast advertising is rather revolutionary; sponsors benefit by getting their product or service in front of an engaged audience, and listeners only hear recommendations relevant to their interests.

And podcast listeners appear to recognise that hosts need to monetise their work to continue producing the content they enjoy.

Still, leveraging podcasts as a marketing medium is a novel concept, and success, like any marketing strategy, necessitates preparation on the front end.

Find out more about ad placement and marketing your podcast by getting in touch with a marketing team member!