The world has seen enough of billboards, banners, and inboxes that are stuffed. Where does one find a more creative way to stay ahead of the trend and position their brands in front of the right people?

In 2024, the once-overlooked medium of podcast marketing has now finally gained its rightful attention. Now, podcast advertising isn't just another marketing tactic – it's a direct pass to the hearts and minds of an audience that's all ears.  While most social media channels focus on visual entertainment, podcasts capture different types of people who are interested in the speaker's actual knowledge.

Let's see how the podcast advertising campaigns will be a game changer for the B2B marketing space:

What is Podcast Advertising?

It is nothing different from your traditional advertising. Unlike Instagram and YouTube personalities who attract audiences using their visual skills, podcasters focus on storytelling. Podcasts currently reach over 42% of Americans every month, and the number is said to increase by 5% in 2025!

Cracking growth for your brand is all about finding new channels to attract potential customers and get better results. While other advertising channels have a chance of being missed, people listen to podcasts intentionally, which helps you reach a wider, more focused audience segment.

The podcast ad formats is pretty diverse too. You can choose to add pre-recorded digital audio as an ad or let the podcast host read the sponsorships. To drive their brand awareness, marketers also opt for podcast sponsorships which are composed of long-form branded episodes and even multiple podcast episodes.

With over 3.2 million podcasts available on various topics and interests, one does not have to worry about finding the right fit for a successful podcast advertising campaign. Whatever your niche is, there are abundant podcasts that will help you reach your audience.

Advantages of Podcast Advertising

Podcasts have become a popular medium for entertainment and information. The part about podcasts is their accessibility. One does not require a screen to view your ad space - people can listen to a podcast episode while driving, cooking, exercising or getting ready for work.

The podcast hosts build a connection with their audience, which is why 67% of podcast listeners perceive the roll ads positively. In fact, many people also say that they trust ads on podcasts more than other types of advertising.

1. High Engagement Rates

Podcasts on average have a low dropoff rate with 68% of listeners willingly sticking around for the entire length of the episode. This high retention rate offers you a unique opportunity for brands to reach a captive audience. This focused audience also sits through pre-roll, mid-roll and post-roll ads.

What sets podcast advertising apart is the effectiveness of host-read ads. These ads are integrated into the content seamlessly, delivered by trusted podcast hosts and have become the most listened-to ad format across all media channels. To help you filter out the best podcast for your campaign, Passionfroot lets you choose from a list of hosts where you can see their metrics and drive conversations with them easily.

2. Trust and Influence

Let's think of it this way - when listening to a podcast, people feel like they are getting advice from a trusted friend of theirs. This helps the host build an emotional connection with the listener.

When brands include a roll ad in a podcast, especially when the host reads the sponsorship, it is the same as getting a recommendation from a trusted source. This unique relationship between the listener and the host, also known as the parasocial relationship, makes people tune in for a new podcast episode week after week.

According to a study by Nielsen,  80% of the listeners trust the recommendations those hosts make. Moreover, 62% of podcast listeners will likely buy a product or service advertised during a podcast.

3. Targeted Reach

Podcast hosts are passionate creators talking about subjects they love the most. And guess what? They've attracted listeners who are just as passionate about these topics as they are. Think about it: If you're selling high-end solutions, wouldn't you love to reach folks who tune in to listen to podcasts about the same? That's the beauty of podcast advertising - you're reaching an audience that's already interested in what you're offering.

Unlike other media platforms, podcasts are distributed across numerous streaming platforms and hosting providers. They can be found on YouTube, Twitch, Spotify and a lot more. This dispersion makes it difficult for advertisers to find a centralized source for all podcasts, complicating the process of identifying and reaching desired audiences efficiently.  With Passionfroot, marketers can take off the strain of searching through a number of podcasts and find the ones that suit their voice. It's a direct line to podcasters’ inboxes, increasing your response rates and speed.

Types of Podcast Advertisements

Podcast sponsorships allow brands to be more creative and explore various options for their dynamic ads. Let's what are some types of ads you can have:

1. Host-Read Ads

This is when the podcast host reads the content of the native ad and presents the message to the listeners. It is like having a close friend give you advice and it works like a charm in building trust. Most consumers prefer a host-read ad as they come across are more believable and authentic than having an unfamiliar voice deliver a message.

Host-read ads are something that we recommend to get the most out of the channel. This is one of the best ways to build authenticity and integrate your ad within the podcast episode.

2. Pre-Recorded Ads

Pre-recorded ads in podcasts are like having a brand's own mini-commercial placed right in the middle of the consumer's favourite show. This is perfect for brands that want to experiment with their voice and want to deliver the message themselves. One can create and record the ad on their own, making sure it sounds exactly like they want it to. As an advantage, the brand creates standard audio ads that can be used in multiple shows and builds consistency.

3. Dynamic Ad Insertion

With both host-read ads and pre-recorded ads, brands have one chance to place the ad in a podcast. Once published, it cannot be changed. Most brands like to have the capability to update the information and keep their audience updated with all the latest information. With Dynamic Ad Insertions (DIA), brands can place ads through an ad server which allows them more flexibility when it comes to updating the ad and keeping the content fresh.

DIAs are a highly effective method which makes sure the brands get the most out of podcast sponsorship. This distribution method allows brands to change the ad content even after the podcast is published.

Ad Placement Strategies

Now that we understand ad types, let's talk about ad placements. There are majorly three types of ad placements:

1. Pre-roll ads appear at the very beginning of a podcast episode right after the host kicks off with the main content. These are great for grabbing the attention of the listener right from the start ensuring that your message gets heard.
2. Mid-roll ads are placed in the middle of the episode often as a natural break in the conversation. These ads tend to be the most engaging since listeners are already invested in the content, making them more likely to pay attention. The host also has a chance to set the tone of the podcast and make sure the audience gets your message.
3. Post-roll ads are found at the end of the episode. While they might not get the same level of engagement as pre- or mid-roll ads, they are most effective in reaching the actually engaged audience that has stuck around to the very end, showing a higher level of interest and commitment.

How Much Podcast Sponsorships Cost

The cost of a podcast sponsorship can vary based on factors like the host's audience, ad length, and ad type. When partnering with the host, both parties can discuss the podcast ad rates. Some common pricing models are:

1. Flat Fee: The brand can pay a one-time fee to the host. This fee might range differently based on the host's podcast metrics. You should ask for their total audience count, total listener count and average listening time and arrive at a reasonable price based on CPM.
2. Cost per mile: With CPM, you’re paying for every 1,000 impressions. Podcast ad networks that typically use a Cost Per Mille (CPM) model, have rates varying based on placement

• Pre-Roll Ads: $15-$30 CPM
• Mid-Roll Ads: $20-$50 CPM
• Post-Roll Ads: $10-$25 CPM

3. Affiliate Marketing: The brand can partner with the host in an affiliate model where they get a share of the revenue for each customer coming through the ad placement. Brands can also give special promo codes to the podcast host to boost sales. Affiliate marketing is a great way to manage your ad spend and partner with podcast hosts.

Athletic Greens’s Approach to Podcast Advertising

When it comes to podcast advertising, AG1 is at the top of the game. They understood the importance of podcast advertising and caught up to it pretty early. They allocated and spent a big chunk of their funds, nearly $2.2 million a month on podcast advertising alone. To make the most of the channel, they’ve collaborated with some of the biggest shows, such as The Tim Ferriss Show and Huberman Lab.

At one point, they were even partnering with 100s of hosts to create brand awareness! They kept their strategy pretty simple - while most ads are about displaying the product to the audience, they focused on creating podcast ads that blend in with the host’s show. It wasn’t about selling, it was about making the service part of their natural everyday life.

The result? Their extensive advertising made them one of the world’s top-performing vitamin drink retailers and even boosted their valuation to a staggering $1.2 Billion in 2022

Podcast advertising offers a unique combination of engagement, trust, and targeting capabilities. 79% of listeners get motivated with podcasts and build a deep connection with the host. As the podcast market continues to grow, advertisers who effectively leverage this medium can gain a significant advantage in growing their business.

Among a pool of options, are you finding it hard to find the right podcasts for your brand? Let Passionfroot do it for you. We'll help you build your B2B brand with Podcast influencers in 90% less time.

‍