Podcast ads’ average conversion rate rebounded in Q2 after falling a quarter earlier, but average purchase conversion and lead conversion rates from attributed visitors fell to all-time lows, according to the latest report [download page] from Podsights.
The report shows that the average conversion rate for site visitors (measured as visitors ÷ household reach) sat at 1.17% during Q2. This was an increase from 1.1% in Q1, though was well below the figure for the year-earlier period (1.58%).
The analysts speculate that the bounce-back versus the previous quarter could be due to a reduction in ad frequency during Q2. To wit, households were exposed to ads an average of 4.76 times during Q2, an encouraging drop after 3 straight quarters of increases leading to a high of 6.32 in Q1. Per the report, “Podsights continues to recommend advertisers drop frequency between 2-5 to achieve optimal results.”
Although the conversion rate for site visits rebounded in Q2, it wasn’t the same story for purchase conversions. The average purchase conversion rate, measured as purchases divided by reach, declined by 17% quarter-over-quarter to 0.037%. Once again Q2’s mark was far below that of the year-earlier period (0.062%).
When looking at the purchase conversion rate from attributed visitors (purchases ÷ visitors), the same pattern is apparent, with Q2’s mark of 4.64% down from Q1’s 5.29% and from Q2 2021’s 6.14%. This rate “describes the rate of purchase from households who are driven to the website as a result of the podcast ad.”
Finally, while the lead conversion rate (the number of sign-ups or email captures divided by reach) remained at a low of 0.08%, the lead conversion rate from attributed visitors fell below 10% to a new low of 9.96%.
These declines may be expected as the podcast advertising market grows in size and reaches a wider variety of listeners.
In other highlights from the report:
- Pre-roll ads, which have increased in popularity among advertisers, continued to have higher conversion rates (1.16%) than mid-roll (1.1%) and post-roll (0.83%) ads.
- Dynamically inserted ads registered a higher average conversion rate (1.37%) than embedded ads (0.84%).
- The Parenting vertical returned by far the highest average conversion rate (4.54%) of any vertical.
- The Beauty vertical had the highest purchase conversion rate.
- The Telecom vertical led all in lead conversions from podcast ads, though Health/Wellness took over the top spot when looking at lead conversion rate from attributed visitors.
- The Arts, Entertainment and Media and Gambling verticals had the highest average install conversion rates.
For more, download the report here.
