Podcast Advertising in the UK. What is it? Why do you need it – and everything you need to know about how it will change your 2021.
This is a quick explanation of podcast advertising – how to monetize your podcast and how to showcase your brand into the world through podcasts. For more details, go check out our website and take advantage of the quickly expanding audio world!
The podcast industry is growing at an exponential rate with nearly 17 million listeners in the UK this year alone. To put this growth rate into perspective, the Research Department at Statista carried out a survey last year in 2020 which concluded that there were 15 million podcast listeners in the UK. They further estimated there would be 20 million listeners by 2024. However, from this year’s growth trajectory, we can already suggest that the total listeners in 2024 will be higher!
Although these figures may seem intimidating, a crucial investigation carried out by Midas provided by RAJAR in 2020 showed that over 10 million people listen to podcasts every week. These are consistent loyal customers who turn up each week to listen to voices they trust. Therefore this proves that whilst Live Radio and Tv still dominate media entertainment, the podcast industry is a hot, non-saturated industry on the rise.
If you’re still not convinced that the podcast industry is here to take over, take a look at this data. In 2019, Joe Rogan from ‘The Joe Rogan Experience’ was named the highest earning podcaster in America after he received around 200 million downloads a month of his show. This made him a total of 50 million US Dollars. That sounds like a pretty convincing reason to invest in this industry to me!
Podcast advertising an ad-block resistant platform that allows you to reach an audience unlike any other form of advertising – just ask Joe Rogan!
This unique form of advertising and marketing, benefits not only the podcaster but also the advertiser. Podcasters are given the possibility to monetise their podcast through host read ads and package deals with brands. However, advertisers are also given the opportunity to showcase their products through ads placed in podcasts!
“The beauty of podcasting and the power of audio lies in its accessibility.”
It’s easy to put an ad on Facebook or niche chat forums but these pages quickly become saturated, therefore ads easily get lost and it no longer becomes cost affective.
Nowadays it is slightly easier to find the right brand to help you monetise your podcast as there are companies such as Podder who have aggregate platforms which bring brands to audiences through Host-read Ads in podcasts.
Setting up a campaign with companies such as Podder will give you access to thousands of different podcasts and advertisers on their database to find you your perfect match. For example, if your product is a new reflective sports top for running then you might want to consider advertising with running podcasts as they will have the same target audience and potential customers.
It is also equally important that the owner of the podcast believes in your brand, as host-read ads are far more effective than ads scripted by the advertiser. This allows for the podcaster to appear more fluent, keeping to their own brand which has earned them the trust of their audience and more often this leads to more sales of the product.
There are many ways to advertise a product in a podcast but the most common are using pre-roll, mid-roll and post-roll ads:
Some advertisers and brands may offer a sponsorship package or bundle. For a set price they will offer to promote a podcast in their newsletter, social media or promote episodes across their website.
The average cost per episode for podcast advertising based on CPMs (cost per mile – number of downloads per episode) would be around £14 for a 15 second pre-roll ad, £19 for a minute mid-roll ad and £8 for a 30 second post-roll ad. Therefore, if your podcast has a larger following, eg. 10,000 listeners then you could be making a decent earning per episode.
Let’s put this in perspective. Let’s say that I have a podcast about dog hairstyles which averages 10K listeners per episode, with 6 episodes a month. If an advertiser who wants to promote their dog shampoo through my podcast buys a 15 second pre-roll ad, 60 second mid-roll ad and a 30 second post-roll ad, then my earnings would look something like this.
Months of Advertising vs. Total Earnings from one advertiser
Month 1 - £2,460
Month 3 - £7,380
Month 6 - £14,760
Month 12 - £29,520
In one year a podcaster with 10 CPM could profit nearly £30,000 just from one advertiser alone and producing only 6 podcasts a month.
As important as it is to choose a podcaster with the same target audience, it’s also important to choose a host with great metrics to secure your return of investment.
How do we measure ROI? – There are many factors that enter the equation for example: Podcast Reviews, Site traffic, Sponsorships, Networking and referrals etc. But a simple way to put it is: ROI = Total Ad Revenue – Total Production Time & Expenses.
Things to look out for in a podcast to ensure a great ROI are
Research carried out at Just. Marketing suggests that 80% of podcast listeners react positively to adverts during a podcast. A further 59% of the same listeners are actually willing to trust in the podcaster and purchase an item from the brand discussed. A final 22% of listeners are actually buying the exact item discussed.
This is also leading to a higher acknowledgment rating for brands and more traffic to their websites either during podcasts or immediately after the episode has finished.
Here at Podder, we are a one-stop-shop powered by AI. Our mission is to revolutionize and simplify the podcast industry with our disruptive solution platform, connecting brands to audiences through podcasts.
The podcast industry is not an industry to be underestimated. The market is constantly growing, gauging its successes, sharing freedom of speech and bringing communities together.
Nowadays, there are so many different ways to launch businesses, products or share ideas and philosophies. Podcast advertising is the new revolutionary marketing scheme. It benefits both podcasters and advertisers in a non-saturated market allowing them to focus on bringing the best content to their shared target audience every day.