Podcast Advertising: How It Works

Podcasting Advertising

I still remember the first time I seriously paid attention to podcast advertising. It wasn’t on a giant news show or a celebrity interview—it was during a small business podcast I stumbled on while working late. The host’s ad for a productivity app didn’t feel pushy. It felt personal, like a recommendation from a friend. And it got me thinking: podcast advertising isn’t just noise between content; it’s one of the most effective, trust-based marketing channels today.

In fact, according to the Interactive Advertising Bureau (IAB) and Pwc, podcast ad revenues hit $2.3 billion in 2023, up from just $842 million in 2020 — a sign that businesses across industries are waking up to the power of spoken trust. (Source: IAB U.S. Podcast Advertising Revenue Study 2023).

So, whether you’re in tech, healthcare, fashion, education, or real estate, podcast advertising is something you can no longer afford to ignore. Let’s unpack everything you need to know — not just the what, but the how, why, and how to do it right.

What Is Podcast Advertising?

Podcast advertising is the practice of promoting products, services, or brands during podcast episodes. It usually involves either host-read ads (where the podcast host reads the ad in their voice) or pre-recorded dynamic ads inserted before, during, or after the show.

Host-read ads are considered the gold standard because they blend naturally with the show, making them sound more like trusted recommendations than traditional ads. In fact, Edison Research found that 64% of podcast listeners are more willing to consider buying a product they heard about on a podcast. (Source: Edison Research, Podcast Consumer Report).

From personal experience, when I tested a small podcast sponsorship last year for a project, the ROI was higher than a Facebook ads campaign I had running for a month. It wasn’t just reach — it was the quality of the audience engagement that stood out.

Why Is Podcast Advertising Effective?

Podcast advertising works for a few powerful reasons:

  • Intimacy: Podcasts create a personal connection. You’re literally in someone’s ears.
  • Audience loyalty: Regular listeners trust hosts and stick around for recommendations.
  • Attention span: According to Podnews, podcast ads have an average completion rate of 80%, which is higher than that of YouTube or social media ads.
  • Niche targeting: There’s a podcast for almost every niche, from vegan baking to financial literacy, letting you target specific audiences.
  • Ad blockers don’t work: Unlike web ads, podcast ads are baked into the content.

In my own business campaigns, podcast ads have brought some of the most loyal customers. People often emailed me, mentioning they heard about us “through [host name]”—something that rarely happened with traditional Google ads.

How Much Does Podcast Advertising Cost?

Podcast ad pricing usually follows a CPM (Cost Per Mille, or Cost Per 1,000 Impressions) model.

Typical costs:

  • $18 to $25 CPM for a 30-second ad
  • $25 to $40 CPM for a 60-second ad

So, if a podcast has 10,000 listeners per episode, a 60-second ad might cost around $300–$400.

But it’s not just about the audience size. Factors like niche focus, host influence, and engagement rate can raise or lower that price.

When I negotiated a deal with a mid-sized podcast host last year, we agreed on a lower upfront fee plus a small affiliate commission per conversion. That hybrid model protected my budget and gave the host more incentive to promote sincerely. Win-win.

What Are the Types of Podcast Ads?

There are three major types:

  • Pre-roll: Ads are played at the start of a podcast. These ads are typically brief, lasting between 15 and 30 seconds.
  • Mid-roll: Ads inserted in the middle. These ads are typically longer (30–60 seconds) and often cost more due to their higher engagement rate.
  • Post-roll: Ads at the end. While this method is more cost-effective, it may result in fewer listeners remaining until the end.

Another big distinction is host-read vs. programmatic ads:

  • Host-read ads feel natural and have higher trust rates.
  • Programmatic ads are dynamically inserted, like radio ads, and can scale faster but sound more generic.

Programmatic is excellent for scaling awareness fast when you’re ready to splash big budgets.

Step-by-Step Guide on How to Start Podcast Advertising

If you’re thinking about jumping into podcast advertising, trust me — having a clear plan saves you money, stress, and frustration.
Here’s the complete step-by-step guide I use when setting up podcast ad campaigns:

Step #1: Set Your Budget (Be Honest About It)

Before proceeding, please determine a comfortable budget that won’t cause stress if results take time. Podcast ads aren’t always instant wins.

What is a suitable budget for a beginner?
$500 to $2,000 for testing across multiple podcasts.

Why: You want enough money to spread across different shows, different styles (host-read vs. dynamic), and maybe different ad placements (mid-rolls usually cost more but work better).

Step #2: Define Your Audience (Get Laser Specific)

You can’t afford to be vague here. Ask yourself:

  • Who exactly am I trying to reach?
  • What are their hobbies, values, fears, and dreams?
  • What types of podcasts would they listen to during their week?

Example:
When I advertised a journaling app, I didn’t just target “health” podcasts — I specifically targeted mental health, mindfulness, and emotional resilience podcasts. Narrow beats broad every time.

Step #3: Research Podcasts (Use the Right Tools)

There are wonderful tools that make finding the right podcast partners easier:

  • Podchaser – Search podcasts by category, audience size, and guest history.
  • Podcorn – Directly pitch to hosts, filter by budget or topic.
  • Spotify Ad Studio – Run programmatic ads based on listener data.
  • ListenNotes – Massive database for podcast research.

What to look for when researching:

  • Audience size (5k–20k is usually perfect for first campaigns)
  • Engagement (do listeners comment, share, review?)
  • Previous sponsors (are there brands similar to yours?)
  • Host credibility (are they trusted by their audience?)

Step #4: Reach Out Directly (Especially for Small-Mid Podcasts)

Don’t be shy — many smaller podcasts prefer personal outreach to middleman platforms.
Here’s a simple outreach formula that’s worked for me:

“Hi [Host Name],
I’m a fan of your podcast and I noticed your audience aligns closely with [target market].
I’d love to sponsor an upcoming episode and collaborate in a way that feels natural for your listeners.
Would you be open to discussing options? Happy to work with your preferred style.
Thanks, [Your Name]”

Always mention a recent episode you liked — it shows you’re serious.

Step #5: Negotiate Terms (Clarity Saves Headaches)

When you connect with a host or ad manager, discuss and lock down:

  • Ad Type: Pre-roll (intro), mid-roll (middle), post-roll (end)
  • Ad Length: 30-sec, 60-sec, or custom
  • Format: Host-read or pre-recorded
  • Number of episodes: (single, series package, monthly)
  • Timeline: (air date, promotion periods)
  • Performance expectations: (Are you expecting reports?)

Ask for a media kit if available — many serious podcasters have one showing listener stats.

Step #6: Prepare Your Ad Script (But Leave Room for Personality)

You want to send key talking points, not a stiff script.
Emphasize these key talking points:

  • What the product/service is
  • The ONE biggest benefit it offers
  • A personal angle the host can tie into
  • Clear action step (“Visit this URL,” “Use this promo code”)

Bad ad: “Try BrandX! It’s affordable and great!”
Better ad: “When mornings are chaotic, BrandX helps me organize my life before my first coffee.”

Step #7: Track Results (This Separates Winners from Losers)

You must have a system in place to measure ad performance. I always set up

  • Custom promo codes (e.g., “PEACE15”)
  • Special landing pages (e.g., yoursite.com/podcastdeal)
  • UTM parameters, if you know how to add them
  • Direct questions (“How did you hear about us?” on checkout or sign-up)

Without tracking, you risk wasting your budget and operating blindly

That’s precisely how I structure my beginner test runs; it keeps risk low and learning high.

How to Measure Podcast Advertising Success

If you want to know whether your money was well spent, you need a simple but strong measurement system.

#1. Use Promo Codes (Classic and Effective)

Offer a special discount or bonus that’s only available to podcast listeners.

Example:
“Use code PEACE15 at checkout for 15% off—just for listeners of [Podcast Name]!”

Promo codes make it easy to trace which customers came directly from the podcast ad.

#2. Create Custom Landing Pages

Instead of sending everyone to your homepage, create a unique, simple landing page just for podcast listeners.

Example:
“Visit journaltree.com/podcastbonus to get your first month free.”

Landing pages allow you to monitor visits, conversions, and time spent on the page—way better than guessing.

#3. Survey New Customers

When someone signs up, downloads your app, or buys something, ask them how they heard about you.
Keep it easy:

  • “How did you hear about us?”
  • Options: Podcast ad / Social media / Referral / Other

It sounds old-school, but I’ve captured vital feedback from simple, non-intrusive surveys.

#4. Monitor Traffic and Sales Spikes

When your ad drops, watch your Google Analytics like a hawk:

  • Did traffic spike?
  • Did email sign-ups increase?
  • Did sales go up the week the ad aired?

Even if promo codes aren’t used, traffic patterns and organic growth can hint at podcast ad impact.

#5. Set KPIs Before You Start

Don’t wait until the end to wonder if your campaign worked.
Define what success means to you before launching.

GoalKPI to Track
AwarenessLanding page visits, social mentions
SalesPromo code redemptions, checkout conversions
LeadsEmail list signups from podcast-specific offers
Brand loyaltyDirect survey mentions

Podcast Advertising vs. Traditional Advertising

FeaturePodcast AdsTraditional Ads
Audience engagementVery highMedium to low
Cost efficiencyHigh for niche marketsOften expensive
Ad skippingLowHigh
Trust levelVery highMedium
PersonalizationEasyHarder

In simple terms, podcast ads are like whispering into a friend’s ear, while traditional ads are shouting on a crowded street.

What Are the Best Platforms to Run Podcast Ads?

Selecting the appropriate platform can significantly impact the success of your podcast advertising campaign. I’ve personally explored a few of these tools, and depending on your budget and goals, here’s what you should know about each one, beyond the one-liners.

#1. Podcorn

Podcorn is the ideal starting point for small brands or newcomers. It’s like a podcast ad marketplace where you browse shows by category, audience size, location, or topic.
What makes Podcorn stand out is direct access to podcast hosts. You can pitch your campaign idea, suggest pricing, and even negotiate a custom deal. There is no need for an intermediary agency.

Pro tip: Use their performance tracking tools and always ask the host for listener demographics before finalising the deal.

Use Case: I ran a host-read ad for a journaling app on a mental health podcast with 8,000 listeners. The show charged $100 per episode, and I gave the host full freedom on how to present it. The engagement rate skyrocketed, with 400 visits to our custom landing page in just 48 hours.

#2. Spotify Ad Studio

Spotify offers dynamic, programmatic podcast ad placements through Ad Studio, its self-serve ad platform. It’s best if you’re aiming for a wide reach, especially among mobile users and music+podcast hybrid audiences.

You can target by:

  • Age, gender, location
  • Podcast categories
  • Type of device (mobile, tablet, desktop)
  • Listening behavior

Great for: Awareness campaigns, big product launches, and audience expansion.

While the targeting is great, dynamic ads don’t carry the same trust factor as host-read ads.

Use Case: One of my clients, a language learning platform, used Spotify Ad Studio to push their new app in Canada. They used a 30-second audio ad across business and education categories. The CTR was lower (0.4%), but impressions reached over 300,000 people in two weeks — fantastic for brand lift.

#3. Gumball

Gumball’s design prioritises simplicity, particularly for advertisers who have a well-defined product and a limited budget. It lists ad slots from major and mid-sized shows, complete with prices, demographics, and audience data. It’s like shopping for ad space.

It’s ideal for brands that:

  • Want predictable pricing
  • Prefer host-read ads
  • Want access to polished podcasts with structured publishing schedules

Use Case: A startup I consulted used Gumball to get on a few comedy and lifestyle podcasts with a combined reach of 200,000+. They used a humorous host-read script, and while they paid about $2,000 across five shows, their product’s waitlist grew by over 1,000 users.

#4. AdvertiseCast

If you’re ready to scale or want to work with popular, well-established podcasts, AdvertiseCast is one of the largest podcast ad networks around.

You can:

  • Filter podcasts by category, audience size, pricing, and delivery method
  • Get bundled pricing for podcast ad campaigns across multiple shows
  • Choose between baked-in or dynamically inserted ads

Use Case: A finance brand I worked with used AdvertiseCast to lock in a 3-month series of mid-roll ads on a top investing podcast. It was pricey ($6,000+), but the returns in app downloads and subscriber loyalty made it worth every penny.

#5. RedCircle

RedCircle is a rapidly emerging leader in the field of podcast ad technology. It offers dynamic ad insertion (DAI), real-time analytics, and host-read opportunities, all with a self-service dashboard. This platform is ideal for brands seeking data-driven decision-making and scalability.

It works well for:

  • Brands with performance marketing goals
  • Those who want to A/B test messaging
  • Agencies managing multiple campaigns

Bonus: RedCircle gives post-campaign performance summaries, including delivery, geography, and estimated impressions.

How to Choose the Right Platform

NeedBest Platform
Budget-friendly testingPodcorn
Broad programmatic reachSpotify Ad Studio
High control with real-time dataRedCircle
Predictable pricing and structureGumball
Large-scale campaignsAdvertiseCast

When I’m advising a first-time advertiser, I always suggest Podcorn for pilot campaigns, then move to RedCircle or Gumball once they have data to scale.

What Kind of Businesses Should Invest in Podcast Ads?

Podcast advertising is not just for tech startups or DTC brands. It can work for practically any business that has a clear value proposition and a story worth telling.

Here’s a breakdown of business types that thrive on podcast ads, along with examples I’ve worked with or observed:

#1. E-commerce & Product Brands

If you sell physical products online, especially niche or problem-solving ones, podcasts give you a way to reach targeted, loyal audiences.

Example: A cruelty-free skincare brand I know ran mid-roll ads on a beauty and wellness podcast. They got hundreds of new orders in one week using a 20% off code.

#2. Digital Tools & SaaS Products

Podcast ads are popular among SaaS businesses due to their tracking capabilities. Listeners who try a tool usually stay if the onboarding experience is smooth.

Example: An accounting tool ran ads on entrepreneurship and solopreneur podcasts — right where business owners hang out. Their sign-up rate increased by 27% during their podcast ad push.

#3. Online Courses, Coaches, and Info Products

If you sell knowledge, podcast listeners are your goldmine. They’re learners, thinkers, and action-takers.

Example: A business coach I work with advertised a free webinar on a time-management podcast. Not only did she fill up the webinar, but half of the attendees converted into coaching clients.

#4. Local Services with a Strong Community Angle

Even plumbers, gyms, or delivery services can benefit from regional podcast sponsorships.

Example: A Lagos-based food delivery service partnered with a popular Nigerian lifestyle podcast. The campaign boosted their app installs by 45% in 30 days.

#5. Authors, Speakers, and Personal Brands

Podcast audiences love authentic voices. If you’re building a brand around your name, story, or expertise, podcast ads can fast-track your growth.

Example: A nonfiction author promoted his book on five writing and psychology podcasts. Not only did he boost sales, but podcast hosts later invited him on their shows, giving him free exposure.

Common Mistakes to Avoid in Podcast Advertising

Let me guide you through some specific and preventable pitfalls, as podcast ads are not as straightforward as Google Ads.

#1. Picking the Wrong Podcast

Don’t choose based on popularity. Choose based on relevance and alignment with your values and offer. Ask for listener demographics, past ad performance, and episode engagement stats.

#2. Writing a Robotic Script

Podcast listeners want warmth, not infomercials. Avoid phrases like “buy now!” or “limited offer!” unless it’s natural for that host’s vibe. Instead, say, “I use this tool every day,” or “My mornings changed after I found this.”

#3. Underestimating Ad Frequency

A single ad rarely changes behavior. Repetition builds memory and trust. I recommend booking at least 3 episodes per podcast for a stronger impact.

#4. Not Measuring Anything

Are there any UTM parameters available? Is there a landing page available? There is no discount code available. How will you know what works?

You don’t need fancy software — just a simple landing page with a podcast in the URL (e.g., yourbrand.com/podcast) and a code like “LISTENER20” can make tracking easy.

#5. Ignoring Smaller Podcasts

Podcasts with 1,000–10,000 listeners often have better engagement rates than shows with 100k+ audiences. Why? This is primarily due to their greater focus on community development.

Key Takeaways

  1. Trust is the currency: Hosts act like micro-influencers. Their recommendation carries serious weight.
  2. Niche targeting beats massive reach: It’s better to reach 1,000 die-hard fans than 10,000 casual listeners.
  3. Ad timing matters: Mid-roll ads have the highest engagement because listeners are already locked in.
  4. Creative freedom pays off: Let hosts adapt the message to their style for maximum impact.
  5. It’s a long game: Podcast ads keep working long after the episode is published.

Conclusion

Podcast advertising isn’t just another trendy platform—it’s a high-trust, high-engagement channel that can bring real customers to your business, no matter your industry. I’ve seen firsthand how a few good partnerships can outperform months of traditional digital ads. It’s not magic; it’s smart alignment between audience, message, and trust.

If podcast advertising can provide enduring influence and loyal customers, may I ask what factors are preventing you from getting started?

References

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