Podcast Ads: Programmatic, Dynamic, and Host-read Podcast Advertising Basics

Microphone with headphones around it on a teal background imprinted with $5 bills

Podcasts & Advertising — A Mutual Media Match

Over time and many episodes, podcasters and their audiences grow increasingly interconnected. This partnership is what makes podcast advertising so effective.

Podcasters thrive on audience feedback and enthusiasm and, in turn, provide an in-your-ear audio experience that reflects this sincere, open dialogue.

When was the last time you wrote into a T.V. show with a special request, and BOOM, your wish was granted the next episode? In podcasting, this happens all the time — every day, worldwide.

Podcasters can react to and include audience requests in the next episode, creating trust and building community in a way other entertainment channels can’t achieve. 

The idea of podcast monetization via podcast ads has dramatically expanded, with ad networks and ad buyers now handling the bulk of the podcast advertising work.

For podcast creators, podcast ads provide the opportunity to support their craft and even profit by partnering with brands that sell products and services their listeners find relevant.

For advertisers, podcast ads provide access to hard-to-find audiences and communities.

Libsyn focuses on taking creators from the basics of starting a podcast to the nuanced conversation of how to make money podcasting.

In this article, we will cover:

  1. The Power of the Podcast Influencer
  2. Podcast Ad Types & Examples
  3. Podcast Ad Placement
  4. Success Metrics & Podcast Advertising Revenue
  5. Working with an Ad Marketplace

The Power of the Podcast Influencer

The podcaster plays a unique and esteemed role for their audience. They are listened to because they offer value — advice, experience, insight, humor, a personal story — that their monthly podcast listeners enjoy and come to trust. This trust comes from the fact that popular podcast hosts also tend to be good at listening to their audience. Podcast Advertising is tapping into that connection and the anxious ears of listeners waiting for the next episode to drop.

Hosts often interact with listeners in a personal way that builds intimacy, and even the consistent episodes (something to look forward to) provide a layer of reliability. Listeners care what their podcast hosts think and value their opinions.

So, if a podcast host recommends a product or service, that recommendation comes weighted with trust and history. It’s a game-changer.

Demand Sage Data, 2023:

Clearly, there is an audience out there — one that listens to 5 million+ podcasts across the globe.

90% of podcast listeners feel that podcast advertising influences their purchasing decisions. (MarketSplash, 2023)

Podcast advertising is just for direct response advertisers— For many more prominent brands with broader campaign objectives; there are new capabilities in podcasting that level the playing field with other digital media. Sure, podcasts are great for a direct response ad, but now they can also be dynamically timed to play seasonally and geographically — and change often.

Common Podcast Ad Myths

Over time, many misconceptions about podcast advertising and its ability to reach and convert have emerged. In this article, Debunking 3 Podcast Myths, Dave Hanley, Chief Revenue Officer at Libsyn’s Advertisecast Marketplace, tackles these myths one-on-one.

  • All podcast ads are created equal — Much like other media advertisements, this is untrue. Learn about the approaches and nuances that make a podcast ad successful.
  • Smaller, independent podcasts are a risky investment — Not only NOT true, but niche podcasts with popular podcast hosts are often the best target audience if skillfully managed.
  • Podcast advertising is just for direct response advertisers— For many more prominent brands with broader campaign objectives; there are new capabilities in podcasting that level the playing field with other digital media. Sure, podcasts are great for a direct response ad, but now they can also be dynamically timed to play seasonally and geographically — and change often.

Today, podcast advertising presents an enormous opportunity to connect with incredibly hard-to-find market segments while offering great flexibility.

For creators, Libsyn’s AdvertiseCast marketplace provides opportunities to get started with podcast monetization upon reaching certain audience thresholds. Podcast ads are just one of those opportunities available to creators at every Libsyn plan level.

Podcast Ad Types Explained

Graphic Listing the variety of podcast ad types to be explained: Dynamic, Programmatic, Host-Read and Baked-In

Like any industry, podcast advertising has its vocabulary for categorizing, producing, running, and measuring advertisements. It is helpful to get to know these terms as you begin to consider podcast advertising for your podcast. The information below will help you understand what podcast ad rates and formats are available AND help you assess if your podcast is ready for ads.

1. Host-Read Podcast Advertising

This is as simple as it sounds: YOU, the podcast host, record the audio advertising as part of your raw recording (baked-in advertising) OR as a separate audio recording inserted (via ad server technology) into your podcast at pre-determined ad slots (dynamic advertising). The primary benefit is that it is YOUR voice and sounds like a native ad. Podcast listeners tend not to skip over these as readily as audio from some strange voice in your content.

The host-read ad is like a real friend recommending a product or service. This is especially true when the host uses the product or service themselves and provides a first-hand account of its usefulness within podcast advertising plays.

This ad format can be placed anywhere within traditional pre-, mid-, and post-roll ad slots. We talk about ad slots more below.

Note: host-read ads tend to perform better than all other forms of podcast advertising and are highly sought after, commanding a higher CPM.

✅ Advertiser and Creator Benefits
  • The podcast ad sounds natural to your audience
  • The advertising can play throughout the content. Note that the vast majority of podcast advertising calls for mid-roll positioning (within your content and not at the beginning or end of an episode).
  • The ad can be recorded with your regular content (the ad is “baked-in” to the episode’s audio file) or as a separate audio clip to be dynamically inserted where appropriate.

Video Tip: Watch the Podcast Advertising video. We answer the most common podcast advertising questions from Libsyn’s AdvertiseCast Marketplace team.

2. Baked-in Podcast Advertising

Baked-in ads are any ads recorded or edited into the original mp3 or wav file of a podcast episode. These ads are typically host-read and recorded within the original podcast recording.  

✅ Creator Benefits
  • Some brands will pay a premium for this opportunity.
  • The ads can be recorded within your regular content workflow.
  • Some brands provide products to the creator to test or try before ad creation.
✅ Advertiser Benefits
  • Ads are baked into your content for life — a permanent brand endorsement with longtail value, particularly within shows producing “evergreen” content that will continue to see listener traffic over time.
  • The ad is natural sounding and flows within the content.
  • The target audience, who perceives the brand’s endorsement as one that supports the creator they have come to love, forms a potentially deeper relationship with the brand.
⚠️ Creator Considerations

Baked-in ads live in your content … forever. Or at least unless you edit them out and replace the episode file. So, a year from now, the ad risks being outdated. For instance, say a True Crime podcast runs an ad for a clothing company offering 20% off inventory before the holiday season. Suppose a new listener discovers the show in June of the following year. In that case, they’ll likely listen to older episodes, at which point the deal and promo code promoted are no longer valid/available.

Also, if you and your advertiser ever break up, your old episodes won’t.    

There is a lot to consider when recording a baked-in ad. If the relationship with the advertiser is more of a podcast sponsorship, you know it will endure the test of time and be more ever-green in its offer. This may be an ad format to consider, and your advertiser may be willing to pay a premium.

3. Dynamic Podcast Advertising

Dynamic, host-read ads are the solution to the cons of baked-in advertising. They can still be host-read and sound natural, or they can be a pre-recorded audio ad provided by the advertiser. In both cases, the placement is determined by ad markers you create via your ad platform or podcast host.

Platforms like Libsyn help you easily create ad markers in your podcast episode if you are enrolled in our automatic ads program or are working with AdvertiseCast. The ad can be placed in natural conversation breaks when creating content for your episodes. Libsyn will never automatically insert advertising into your podcast without your permission.

✅ Creator Benefits
  • Monetize all podcast episodes — not just newly recorded content.
  • Accept ads they did not personally record or create.
  • Retain control over what brands can advertise in your content.
✅ Advertiser Benefits
  • Ads can be host-read or pre-recorded creative.
  • Deploy time-sensitive campaigns & promotions.
  • Geographic targeting is possible — optimizing ad spend and budgets.
  • Consecutive campaigns can be planned based on seasonal business needs — product launches or sales.
  • Updated creative can be quickly deployed.
  • Better measurement and reporting data options are available.
  • Ability to work with a variety of attribution partners (also referred to as pixel tracking — a feature often required by advertisers — without the need to install multiple RSS prefixes. Instead, publishers can simply attach a dynamic “tracking pixel” to their ad read.)
⚠️ Creator and Advertiser Considerations

Download and/or impression requirements for podcasters to participate in these campaigns are higher and not ideal if you are a small show just learning how to start a podcast. Be advised that dynamic campaigns are tracked by “impressions,” which are always lower than the standard “download” metric used to track baked-in spots. 

Many more prominent national brands are making big media buys and looking for 10,000 to 15,000 minimum monthly U.S. downloads per show to invest. 

4. Programmatic (or What We Call Automatic) Ads

Programmatic podcast ads are an automated buying and selling of podcast ad inventory that allows advertisers to reach specific audience segments based on data. These work differently than baked-in or dynamic host-read ads. 

With programmatic podcast ad delivery, the creator opts out of ad categories and designates traditional ad slots of pre-, mid-, and post-roll. The advertising platform technology delivers the ad to the listener based on targeting criteria: geo-location, demographic, and ad categories selected.

Programmatic ads are usually pre-produced by an outside agency and typically not host-read. They are placed with ad marketplaces like Libsyn’s AdvertiseCast into a podcast network or aggregated group of podcast shows that have audience demographics aligning with their target market.

✅ Creator Benefits
  • Lower download and audience size requirements to participate.
  • You can enroll in Libsyn’s Automatic Ads by meeting 2000 monthly U.S. downloads.
  • Hands-free, passive monetization of current and back-catalog.
  • Exclude IAB Ad categories that don’t align with your brand.
  • There is no need to record or create new ads — just the podcast you love.
✅ Advertiser Benefits
  • Target the niche audiences of smaller podcast shows.
  • Brands can provide their ad creative to ensure ad and messaging consistency.
  • Same great opportunities as dynamic host-read ads:
    • Deploy time-sensitive campaigns & promotions
    • Geographic targeting is possible — optimizing ad spend and budgets
    • Consecutive seasonal campaigns — product launches or sales
    • Updated creative can be quickly deployed
    • Better measurement and reporting data options
⚠️ Creator Considerations
  • CPMs for programmatic ads are almost always lower than CPMs on host-read ads — in some cases, significantly lower. It’s important to understand that many creators utilize host-read ads — both baked-in and dynamic — and programmatic ads in conjunction with one another. If a podcaster’s ad inventory is not completely sold out with host-read opportunities, they can still supplement their income by accepting programmatic ads to help fill in the gaps.
  • As a podcaster, you do not have the opportunity to approve the specific advertiser. Ads are grouped into specific IAB (International Advertising Bureau) categories. So, when you sign up for Programmatic Ads, like Libsyn Auto Ads, you can select which categories you would like to omit, but you do not choose specific advertisers or brands. This allows Libsyn to deliver ads to your podcast more efficiently, maximizing the earning potential and contributing to a higher fill rate.

Learn more about Libsyn programmatic ads offering: Automatic Ads.

Video Tip: IAB stands for Interactive Advertising Bureau and provides the industry standard in podcast stats measurement. IAB stats are what advertisers look for when selecting podcasts to buy, making their decisions based on the strength of these trusted numbers rather than just on “how many downloads.” All Libsyn Stats are IAB certified.

IAB categories are determined based on the IAB Content Taxonomy. The Content Taxonomy provides a “common language” that can be used when describing podcast content. This language is accepted and used across the industry to categorize podcasts and is commonly used for contextual targeting and brand safety.

Podcast Ad Placement

Regardless of the type of audio ads your podcast is running, they will play everywhere your podcast is distributed. This includes places like Apple Podcasts. Podcast advertising platforms and ad networks insert the audio ads into your episodes and deliver them to the podcast listening app of your audience’s choice. One of your super fans might be listening to your podcast on Spotify and another on Apple Podcasts, but both will hear the same advertisements.

Graphic showing how ad slots are placed in podcast audio pre-, mid-, and post-roll.
Podcast ads are generally grouped into three types of ad slots. These include pre-roll, post-roll, and mid-roll. Regardless of the type of ad you are running — baked-in, dynamic, programmatic, or podcast sponsorship — ad buys are made with these ad slots in mind. Whenever you create an ad marker in an episode on a service like Libsyn, it will fall into one of these categories and contribute to your overall ad inventory. Your ad inventory is what is sold to advertisers. The ad’s placement can impact the ROI for both the podcaster and the advertiser. However, the more ad slots, the better should not be your strategy. Careful consideration of your audience and the length of your content should be top of mind. Never risk alienating your podcast listeners with too many ad slots. Note that your audience is the most important thing to remember when selling ad space in your podcast.
Pre-Roll Ads
    • These are ad spots placed BEFORE the episode runs OR within the first few minutes of the episode.  
    • You can have more than one.
Mid-Roll Ads 
    • These ads are placed DURING the podcast episode’s run. 
    • Mid-roll ads represent the most sought-after ad position by advertisers and typically produce higher CPMs than pre- or post-roll ads. 
    • You can also have more than one Mid-roll ad.
Post-Roll Ads
    • These are ads placed AFTER podcast episodes run.
    • Again, you can have more than one, but we advise in the 1-2 range.
Libsyn podcasters who work with Libsyn’s AdvertiseCast Marketplace can allow AdvertiseCast to automatically place pre-and post-roll ads without the work of manually adding markers for each episode, but can also place ad markers using Libsyn’s slot picker as seen below.

However, you want to avoid exploiting your listeners’ generosity. Be sure to consider how long your episode is before including multiple ads. Building and protecting your podcast audience experience is critical to maintaining your authority/popularity as a host when considering how many ads you want to include.

Recommended Number of Ads Per Episode for Episode Length

    • <15 min. 1-2
    • 15-45 min. 2-3
    • 45-60 min. 4-5
    • 60+ min. Depending on the length, use your judgment

Podcast Advertising Success Metrics

Success metrics for the advertiser or media buyer who is investing in podcast advertising can vary from one podcast ad campaign to the next and are impacted by the ad buy, advertiser, and ad type. However, there are common forms of measurement used to verify that podcast consumers are listening to the campaigns’ ads.

This is what measurement is all about for brands — ROI. If I invest in podcast advertising, will I see a bump in sales, will brand awareness increase, will codes be redeemed, will my ads run, and will the podcast listeners take action? From the stats above, we know the answer is yes, and that success is verified with the tracking and measurement options below.

Impressions

Impressions, when referring to podcast ads, are the number of times a podcast audience member is presented with an advertisement in totality on a podcast episode. This term is only utilized in reference to dynamic or programmatic inserted audio ads — never baked-in.

Impressions offer a more precise view of how many people have heard an ad by considering variables like listener drop-off, skipped ads, etc. For example, your latest podcast episode was played 100 times. Inevitably, some of those listeners may choose to skip through the ads. The download metric cannot account for this scenario. Episode downloads measure interaction at the episode level, while impressions track interaction with the ad.

Attribution

Attribution is the term used when referring to tracking the performance of an ad. There are two primary means of Attribution: Pixel tracking and Prefix Tracking. Both validate impressions.

Pixel tracking

Pixel tracking uses a piece of code in a dynamically inserted ad that can have a corresponding code on an advertiser’s website. When an audience member listens to an ad with pixel tracking, that counts as an impression. When they visit the advertiser’s website, that impression becomes a conversion. 

Prefix tracking

Prefix tracking uses a code placed on the RSS feed called a Prefix that connects to an external tracking service, such as Podtrac.

Downloads

Podcast downloads may still be the critical measurement metric in some ad buys, like baked-in ads or sponsorships. It is essential as a qualifying and measurement metric. Your podcast’s downloads help inform the ad networks and media buyers approximately how many monthly impressions you might have and indicate the popularity of your podcast.

Revenue from Podcast Ads

Podcast Advertising payouts for podcasters are typically based on CPM (cost per thousand) rates. This is per 1000 impressions, not per 1000 downloads for dynamic ads. Baked-in ads still use the download metric.

Despite some popular beliefs, a gigantic podcast sponsorship payout is uncommon. Large brands don’t frequently sponsor podcasts long-term as their internal ad budgets fluctuate. Just like advertising budgets for purchasing podcast ads go up and down, podcasters should also expect some fluctuation in ad revenue from their podcast.

Think about how many commercials you see for seasonal products or services. Tax-related services do more advertising around tax season, so we expect them to have a larger ad budget around that same time. They may invest in a pre-recorded ad for their services and want to buy ad space in a personal finance-related podcast, but those same ad dollars won’t be spent mid-summer.

Your ad revenue may spike during a couple of months of the year and stay relatively flat during other months. Just like other businesses’ your ad sales revenue will likely be seasonal.

CPM (Cost Per Thousand)

With Libsyn’s AdvertiseCast Marketplace, automatic podcast advertising revenue is based on CPM. In simpler terms, the CPM rate is how much podcast ads cost media buyers to purchase 1000 impressions of their ad in your podcast. It’s what the advertiser pays, not a straight translation of what you, the podcaster, are guaranteed to make. CPM rates fluctuate monthly, and Libsyn publishes AdvertiseCasts here.

For instance, in March 2023, the average CPM rate was $22.19 for a 60-second ad spot, and the three highest CPM categories based on delivered advertising were Technology ($26), Education ($25), and Business ($24). These podcast ad rates are what buyers are paying per 1000 impressions.

Your earning potential depends on your audience size, fill rate, and revenue share. Specific genres/categories are in higher demand, so shows with a smaller audience can still generate substantial revenue.

Many platforms also have a minimum threshold to issue payment, typically around the $20-30 dollar range. If you can’t meet that threshold, it may be a few months before you make any money if you barely get 1,000 downloads a month.

Fill Rate: This term refers to the number of dynamic ad breaks filled relative to the overall number available. For example, let’s assume your podcast places four dynamic ad markers per episode ( 1 pre-roll, two midroll, and one post-roll), and over the course of one month, you saw 20,000 unique downloads. Hypothetically, that would indicate 80,000 possible opportunities to serve a dynamic ad.

However, we must remember to account for listener drop-offs, skipped ads, downloads that have yet to be listened to, etc. Let’s assume the number of possible opportunities for an ad to be served is closer to 60,000. Of those 60,000 opportunities, 35,000 impressions were served/consumed, equating to a 58% fill rate.

Your fill rate can and will vary monthly based on various factors. That said, Libsyn always strives to bring you the highest possible fill rate, with the understanding that an ad served at a lower CPM is still better than no CPM at all (i.e., letting the ad slot go unused).

Want to estimate how much your podcast could earn? Check out this Podcast Advertising Revenue Calculator.

While the calculator does not accurately represent your earning potential, it’s a great way to show you what impacts that potential. It calculates possible earnings after entering all the information we have discussed (how many episodes you have, potential ad slots, current & back catalog). It also factors in the revenue share of the ad marketplace and the fill rate.

Every ad marketplace takes a cut of ad revenue. That cut goes to funding the work to calculate the value of a podcast, manage campaigns, and attract advertisers. It also pays for the work and the tech that go into the relationship with the ad buyer — the campaign setup, ad creation, and reporting and payment. With all the work, No wonder so many podcasters choose to work with AdvertiseCast. It is a revenue share well spent and time saved when you consider what it would take to manage this personally.

Working with an Ad Marketplace

While you can seek out podcast sponsorship ad deals, advertising marketplaces like Libsyn’s AdvertiseCast were created to connect content creators and media buyers, streamlining and standardizing the process for everyone.

Libsyn’s AdvertiseCast Marketplace combines an industry-leading ad buying and management platform with full-service capabilities. They make it easy for podcast advertisers to initiate and manage highly targeted and measurable campaigns while providing maximum returns for creators.

Thousands of podcasters choose to work exclusively with AdvertiseCast for ad sales. This ensures that the ad marketplace can sell its full content catalog and maximize the creator’s fill rate. 

Libsyn expanded to Europe by acquiring Julep, providing more international podcast advertising revenue opportunities for the world’s favorite podcasts.

Want to learn more about podcast advertising and working with a marketplace? This video featuring podcast ad expert Dave Hanley gives you an in-depth look. 

Podcasters that Work with AdvertiseCast

AdvertiseCast represents the ad inventory for 2,900+ podcasts and more than $50 million in advertising earnings for podcasters in 2022.

Podcasters that Work with Julep

Individual podcasters and entire podcast networks work with our U.S. and international teams from Julep and AdvertiseCast. They make it easy for advertisers to find podcasts that will provide brand ROI and for podcasters to stay focused on their craft and grow their audience.

Not Quite Ready for Podcast Ads?

Podcast advertising is not for every podcaster. It is optional. However, podcast advertising could be the solution if you have invested a lot of time in your content and your audience and are looking for ways to cover the cost of these investments. Podcast subscriptions might be as well — or both!

Libsyn’s Glow is a subscription platform that does all the heavy back-end lifting regarding payments so that you can provide exclusive, members-only content for your subscribers! Even if you monetize your free content with ads, you can offer ad-free content to paying subscribers.

The landscape of podcast advertising is ever-evolving, but Libsyn’s AdvertiseCast and Julep’s commitment to podcasters and advertisers continue to create new opportunities for both. After all — they’re a perfect match.

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