A Test of Time and Money: The Future of Podcast Advertising

Written By

SMI Staff

Published On

Thursday, Jun 02
podcast

A May 23rd article in the Wall Street Journal explores a new revenue-generating model in the podcast market: charging users to listen. This is a shift from the current ad-supported model to a subscriber-based model, and comes as marketers continue to hone in on the most effective ways of reaching consumers and generating revenue. 

The company leading the way in experimenting with charging listeners for content is podcast app and ad network Acast, based in Sweden. On Monday May 23, the company launched a service called Acast+ that allows podcasters to set their own prices for content and split revenue with Acast. Subscribers can then listen to their preferred programs without advertising. “You can monetize through ads and you can monetize through payment,” said Mans Ulvestam, co-founder and CEO of Acast. 

So what does this mean for SMI and our partner in endorsement radio advertising, Ad Results Advertising, as well as other advertisers in the audio space? Time will tell, and as the headline of the WSJ article states, this new venture into subscriber-based revenue models for podcast producers is a “test.” What we do know is that the podcast platform gives marketers a previously untapped channel for engaging with consumers and offering valuable content. Direct response marketers can target podcast listeners with ads promoting coupon codes, allowing the ROI to be more easily tracked. Brand response marketers are seeing the trend and following suit in developing ad content of their own.

There’s no doubt that the podcast boom presents a ton of profit opportunity. 17% of Americans over the age of 12–around 46 million people– listen to at least one podcast each month. That figure is up from just 9% in 2008, according to Edison Research. Ira Glass, host of the wildly popular This American Life radio show, told Adweek in March of this year that the podcast for his hit show now makes more money in advertising than the actual radio show does. Estimates from ZenithOptimedia show ad spending on podcasts in the U.S. could hit 35.1 million in 2016. 

While the best revenue model for podcasts remains up in the airwaves, one thing is certain: people are listening and advertisers are paying close attention.

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A May 23rd article in the Wall Street Journal explores a new revenue-generating model in the podcast market: charging users to listen. This is a shift from the current ad-supported model to a subscriber-based model, and comes as marketers continue to hone in on the most effective ways of reaching consumers and generating revenue. 

The company leading the way in experimenting with charging listeners for content is podcast app and ad network Acast, based in Sweden. On Monday May 23, the company launched a service called Acast+ that allows podcasters to set their own prices for content and split revenue with Acast. Subscribers can then listen to their preferred programs without advertising. “You can monetize through ads and you can monetize through payment,” said Mans Ulvestam, co-founder and CEO of Acast. 

So what does this mean for SMI and our partner in endorsement radio advertising, Ad Results Advertising, as well as other advertisers in the audio space? Time will tell, and as the headline of the WSJ article states, this new venture into subscriber-based revenue models for podcast producers is a “test.” What we do know is that the podcast platform gives marketers a previously untapped channel for engaging with consumers and offering valuable content. Direct response marketers can target podcast listeners with ads promoting coupon codes, allowing the ROI to be more easily tracked. Brand response marketers are seeing the trend and following suit in developing ad content of their own.

There’s no doubt that the podcast boom presents a ton of profit opportunity. 17% of Americans over the age of 12–around 46 million people– listen to at least one podcast each month. That figure is up from just 9% in 2008, according to Edison Research. Ira Glass, host of the wildly popular This American Life radio show, told Adweek in March of this year that the podcast for his hit show now makes more money in advertising than the actual radio show does. Estimates from ZenithOptimedia show ad spending on podcasts in the U.S. could hit 35.1 million in 2016. 

While the best revenue model for podcasts remains up in the airwaves, one thing is certain: people are listening and advertisers are paying close attention.

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When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There's always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

    facebook
    twitter
    linkedin
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When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

    facebook
    twitter
    linkedin
[/et_pb_section]
[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

facebook
twitter
linkedin
[/et_pb_social_media_follow][/et_pb_column]
In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative! 

[/et_pb_column]

When it comes to audience targeting, nimbleness, and reach–the evidence is clear: audio advertising is a wise investment.  

That being said, marketing managers are more often forced to justify ad spend with ever increasing returns on investment. Budget and talent constraints–no matter how remarkable your product or service is–often put your brand at a disadvantage when it comes to breaking through the noise and seeing any meaningful ROAS (Return on Ad Spend) so relying on great creative alone is not enough. A multifaceted approach is paramount.

[/et_pb_column]
twitter
linkedin
In order to launch, scale, and optimize a campaign for success, strategizing where and when your ad is heard is critical.

A group of gears stacked on each other

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

influencers streaming a podcast at college radio station

We Have the Expert Infrastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation.

A group of gears stacked on each other

We have the Expert Infastructure

In addition to SMI’s dedicated Creative and Analytics teams, our media buyers and strategists have deep industry relationships and format connections.  

Our Media team works in tandem with Client Services to understand the target demographics and geographical considerations alongside the short and long-term goals of our clients. Their combined expertise, in collaboration with our Analytics team, allows us to be vigilant in evaluating and communicating campaign performance in real time.  

Because our buyers and strategists have built and nurtured relationships with stations, agencies, and shows–we are also able to pivot precisely and aggressively if need be. Even in the days of such potent technology and automation, sometimes a format or rate adjustment simply comes down to the power of a well-handled telephone conversation. 

 

 

influencers streaming a podcast at college radio station

Collaboration Yields Results

Senior Media Buyer, Pam Wolfgram underscores the importance of our industry relationships:  

“Our media partners are exactly that: partners. They have a vested interest in helping us help our clients; it means more business! Even if they have to take it on the chin here and there for a client’s success–and they do–they know they’ll make it up in the long game, as we will send them every schedule that makes sense down the road. They want to work hard for us and for our clients.

As an example, we recently orchestrated a massive creative change affecting over 600 stations and it had to go off without a hitch, as “hitches” are mistakes that lead not only to credits being taken, but also to skewed results that make a test difficult to read. I reached out to every rep impacted by the change to express the importance of the test and walked away feeling completely at ease knowing that they were going to get with their traffic people and watch over the test like hawks. A little extra communication goes a long way!” 

All of SMI’s media buyers, researchers, and strategists have something in common: they know firsthand the value of respectful dialogue and perseverance. 

The motto of our Media team? 

There’s always a workable solution to get meaningful return on ad spend. 

If you’re ready to invest more wisely in your audio advertising, start a conversation with us today! 

This is part one of SMI’s three-part series called Give Your Brand a Voice. Stay tuned for our next article focused on Creative!