Podcast Advertising (Podvertising) and Sponsorship

Podcasts are all the rage. Marketers can’t seem to stop talking about podcasting and how it changes communication in corporates, B2B, and B2C. Content niche publishers are excited about the low cost publishing channel with global reach available with podcasting.

According to Arbitron, a research firm serving the radio industry, 11 percent of all Americans have listened to audio podcasts. This translates into approximately 27 million Americans that have tried podcasts (based on a research published in early 2006).

Marketers have tremendous opportunity to get their message out to their audience. There are many ways businesses and publishers can use podcasts as a marketing channel. But if starting one is not an option for one reason or another, they can tap into podcasts by taking the role as advertisers.

Podcast advertising or podvertising is different than traditional media. Listeners turn to podcast because they can freely choose their content and consume it at their own time and place. They also try to avoid straight to the face ads, which turn them off.

Podcast producers have to be careful not to disappoint their listeners with excessive and aggressive ads. The consumers have more control than ever. If they decide that your podcast is not worth their time, unsubscription is just one click away.

eMarketers forecast in early 2007 that spending on podcast advertising in the US market will grow nearly tenfold in the next five years. In 2006, spending on podcast advertising reached $80 million and will grow to $240 million and $400 million in 2008 and 2011, respectively. The figure includes advertising and sponsorship spending.

Different ways podcasters can tap into advertising

Usually podcast advertising refers to placing audio ads into podcast episodes. But if you look further, there really are several ways podcasters can tap into the world of advertising:

Ads in podcast episodes. This is what most people refer to when they talk about podcast ads. It is a pre-determined length marketing messages from third party for a brand, product or service that the podcast producers place as part of their podcasts — either manually or through podcast advertising network. Podcast advertisers pay for ad placement in podcasts.
Podcast sponsorship. This format of ads is different from podcast advertising. In sponsorship, the sponsor pays the podcast producers to support the podcasts directly. As part of the sponsorship, the sponsor get a spot on the podcast, usually a mention of their brand or product.
Site or blog advertising. Podcast shows also have their own sites or blogs to publish episode notes and other information about the podcasts. Web site advertising through direct ad buying or ad networks are easy to integrate now. Especially in ad networks, site owners can put a piece of code on the site template and immediately get relevant ads on the each page.

Podcast advertising is still in its infancy

Podcast advertising and sponsorship is revving up quickly, but still in its infancy. For now if you measure them in one of the ad metrics like CPM (cost per mille), it ranges at $10 - $30 CPM.

It is not the amount of advertising dollar that matters though, but more about what podcasting as a marketing channel has to offer. Podcasting as an emerging channel gives marketers unique opportunities:

Interactive audience. As part of the social media, podcasts encourage participation instead of me-to-you communication. Consumers are here to gain control. Blogs and podcasts make this a reality. Everyone can now post comments on a blog, start their own blog or podcast.
New market penetration. Podcasts open up new market that are really interested about what you have to offer. When people listen to a podcast, they can only listen to one at a time instead of hopping from one to another in seconds, unlike in web browsing. Podcast listeners are Internet savvy and more likely to spend money online. Refer to podcast statistics and marketing with podcasts pages for more information about benefits of podcasting and demographics of the audience.
Qualified audience. No one will listen to a podcast unless they choose to do so. Podcast subscription is entirely opt-in and spam free. Due to its narrowcast feature and topic, podcasts reach a specific group of very targeted audience.

Tips for successful podcast advertising

Podcast advertising is a different beast. The target audience, or podcast listeners, expect different experience when listening to podcasts. In the page about marketing with podcasts, you can find out about the common traits of podcast audiences.

For the same reason, podcast producers are afraid to turn off their audience and lose their attention forever. How do you create a successful podcast advertising campaign?

Create short messages. From numerous studies and experiences, it has been proven that podcast audience don’t mind ads as long as they are short. A 15-second spot is better than 30- to 60-second spots. Brevity is critical. If you need more than that to deliver the pitch, then split it into segments of short messages.
Keep it engaging. Don’t bore podcast audience into listening the same message creative again and again. You should include different formats of ads that address each of the product’s benefit. Some examples would be different ads based on events, interview with customers about their experience with the product, practical how to on using the product, etc.
Targeting, targeting, targeting. Podcast listeners are very targeted. And so, they are less tolerant to messages that are not created for them. You must know the audience of the podcast better than other media. If you are promoting sophisticated software and the audience are technically knowledgeable, you should focus on the practical use of the software more than explaining the basic features because they already know them.
Be responsible to the listeners. Podcast consumers have subscribed to the podcast to listen to what you get to say. This is the beginning of their trust. Current audience still subscribe and listen because they like what they hear. When the trust is high, they are more likely to buy. Podcast listeners who regularly listen to podcast episodes pay attention to the podcasts. As you may have known, attention is the new business currency in the online world nowadays. Only after getting their attention should you try to deliver your marketing message. Although chances are better listeners will listen to your ads if they are at the beginning of the podcast, it is also beneficial if the audience has the chance to listen to the content and feel more open to offers before you run the ads.
Quality content over the rest. Podcast audience subscribe to your podcast for one reason only: to get quality content. In return, they don’t mind a bit of promotional content or ads or marketing messages. Keep these messages very relevant though. Not only does it convert better, but because listeners will see them as recommendation instead of hard selling.