Spotify announced this month it has acquired podcast development company Gimlet Media and back-end podcasting services firm Anchor. The acquisition helped position Spotify as the second largest podcast player behind Apple.
Originally introduced in the early 2000s with the release of the iPod, podcasts have been gaining massive traction in the past five years. Apple confirmed that there are over 525,000 active podcast shows and over 18.5 million episodes in 2018. More than 73 million Americans listen to podcasts each month.
Typically attracting more educated and affluent listeners, podcasts have become an exciting and effective tool for marketers. National Public Radio, which produces popular podcasts like How I Built This and Ted Radio Hour, claims that 88% of NPR podcast listeners have taken action in response to a sponsorship announcement in an NPR podcast and 65% of NPR podcast listeners prefer to buy products or services from NPR podcast sponsors. One explanation is that listeners usually have respect for the hosts and therefore are more likely to have positive opinions of the products the hosts advertised.
For a podcast advertisement, there are three types of placement:
Pre-roll: 15-30 seconds at the beginning of the show
Mid-roll: 60-90 seconds in the middle of the show
Post-roll: 15-30 seconds at the end of the podcast
According to Hailey Friedman, Head of Marketing at Improvado.io, the most valuable time slot is the mid-roll since the listeners are the most engaged at that time and less likely to skip the ad. Typically, it costs $18 per 1,000 listens (CPM) for a 15-second pre-roll and $25 per 1,000 listens (CPM) for a 60-second mid-roll. In other words, depending on the popularity of the podcast and placement of time slot, buying podcast advertising can cost from $200 per episode to $25,000 per episode.
Sources:
https://www.growthmarketingpro.com/comprehensive-guide-podcast-advertising/
https://www.singlegrain.com/blog-posts/content-marketing/podcast-advertising-what-you-need-to-know/
http://nationalpublicmedia.com/wp-content/uploads/2015/08/NPR-Podcast-Sponsorship.pdf
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