Podcast Playbook
IAB Just Dropped New Guidance on Podcast Ads: Here’s What You Need to Know
Podcast advertising revenue is predicted to hit $220 million in 2017— that’s an 85% leap from last year’s take of $119 million. This explosion in growth has brands more curious than ever. The blue chip advertisers who dipped their toes into the pool have now opened the door for others to experiment, but the industry is still new and rapidly changing. How do brands continue to navigate the nuances of this space efficiently and effectively?
To help guide the process, the IAB has literally written the playbook on podcast advertising. In a collaborative effort with several leaders in the industry, the first ever podcast buyer’s guide is its most comprehensive to date. We’re extremely proud to be a part of that team working towards empowering the advertising community with audience insights, delivery options, and best practices.
“It’s no question that consumers are all about on-demand content, and podcasts are benefitting from this shift in media. Advertisers want to be involved, but it can be challenging to understand an emerging media, especially one that is growing so quickly. The IAB’s support of not only podcasts but digital audio over the last few years has been huge. We hope this guide shines a light on the unique benefits and opportunities that all kinds of brands can take advantage of.” — Ilwira Marciszek, VP Digital Sales Strategy
The industry’s findings on the podcast audience have been consistent across the board, painting a picture of a listener who is young, educated, and affluent. They are consumers who are becoming increasingly hard to reach through traditional channels but are found to be more receptive to podcast ads. Recent studies highlight the recall power of podcast ads with 67% of respondents naming an actual product feature or specific promotion mentioned in a podcast ad, and 61% indicating that they purchased a product or service they learned about from a podcast ad (source: Midroll).
How podcast consumers are listening is a valuable factor too. Two-thirds of digital media minutes are being spent on mobile (2016 U.S. Mobile App Report by comScore), making it a key touchpoint for advertisers. With 85% of podcast listening occurring on mobile devices (source: Podcast Analytics, May 2017), the messaging travels with the audience. And whether listening occurs while doing chores at home, working out, or in the car, no screen is necessary to engage them.
It’s time to put podcasting’s value to work with the right creative. Availability may vary depending on the length and format of the show, but the standard units include pre-roll, post-roll, and mid-roll ads. While host read ads are the bread and butter of podcast advertising, new technology is giving brands more options as to how those ads are delivered. The Playbook breaks down the differences between “baked in” and “dynamically inserted” ads. Both methods have their advantages and disadvantages — the right delivery method will ultimately depend on your brand’s goals.
The creative options don’t have to end with the post-roll. Branded episodes, custom features, even presenting sponsorships should be considered to intuitively weave your message into the fabric of the program. As new and different types of brands test the waters, we can expect to see more and more “outside-the-box” creative integrations.
The Playbook also addresses downloads — the metric that has become the standard unit of measurement. Downloads per episode may not be a perfect, but most hosting platforms now offer tracking data that aligns with industry standards. While podcast apps have no standard for reporting on whether an episode was listened to at all, Apple’s anticipated analytics may be a huge game changer as the Apple app represents a huge percentage of the podcast audience. You can check out the IAB Podcast Ad Metric Guidelines for even more on the development of reliable and standardized audience tracking.
If you’re a brand that’s new to podcasting — either you’ve done your research but don’t know where to start, or a complete newbie — the options can be overwhelming. The good news is, as new content is created and new listeners join the growing audience, this is the most exciting time to jump in. There’s a captive audience out there that’s ready and willing to hear what you have to say.
