With several stated benefits of podcast advertising such as a desirable target audience, brand safety, share of voice and seamless integration of ad creatives within programming, it’s no wonder that investment in podcast advertising was expected to grow by 30.6% last year. So, what kind of results should advertisers expect from podcast advertising? Here’s what Podsight’s most recent benchmark report [download page] has to say.
The report indicates that the average conversion rate — defined as the number of attributed households divided by the unique households that downloaded the episode — of podcast campaigns saw an increase in Q4 2021 over the previous quarter, reaching 1.42%. That said, conversion rates differ depending on the number of impressions. It appears the sweet spot for those testing out their podcast media is to aim for between 400K and 800K impressions, which results in an average conversion rate of 1.24%, and some 3,348 attributed visitors —those individuals that download a podcast containing an ad, and then visit the brand’s owned and operated website. This assumes a recommended podcast ad frequency of 3.
Per Podsight’s benchmarks, it would take 2-4 million impressions to garner more than 10,000 attributed visitors (average of 12,110), while running 8-12M impressions would result in even greater benefits, at almost 50,000 assumed visitors. This is an option for brands that have validated podcast advertising and are looking to scale, per the report.
Advertisers can also increase their odds by running podcast advertisements across multiple publishers or networks. Podsight’s data shows that the average conversion rate increases along with the number of publishers. For example, the average conversion rate when using a single publisher was 1.09%, while those using more than 11 or more publishers saw an average conversion rate of 1.45%.
Ad placement matters, as well. Mid-roll podcast ads continue to deliver the best results, showing a higher conversion rate (0.87%) than pre-roll (0.73%) and post-roll (0.48%). Additionally, although embedded podcast ads (0.96%) generally outperform dynamically inserted ads (0.91%) in terms of conversion, there are some industries where dynamically inserted ads produce better conversion rates, including Gambling, Professional Services, Fashion and Home.
The full report can be downloaded here.