Audio & DOOH · also called podcast ads
Podcast advertising
Podcast advertising is paid messages placed in podcast episodes, either read by the host or produced separately, sold per thousand downloads and increasingly inserted dynamically or programmatically.
Podcast ads come in two main styles. Host-read ads are delivered by the host in their own voice, often personally endorsing the product, and are highly trusted by listeners. Produced ads are pre-recorded spots, like radio ads. Ads sit in pre-roll, mid-roll or post-roll positions.
Ads can be "baked in", recorded into the episode permanently, or inserted with dynamic ad insertion (DAI), which stitches different ads into the file each time it is downloaded, based on date, location or listener device. DAI makes podcast inventory sellable through programmatic audio platforms.
Podcast measurement relies largely on downloads. The IAB Tech Lab's Podcast Measurement Technical Guidelines define how to count a valid download, for example by filtering bots and duplicate requests, and companies can be certified against them. A download does not guarantee the ad was heard, so advertisers also use promo codes, vanity URLs, surveys and attribution pixels to measure results.
Think of it like this
A host-read podcast ad is like a friend who runs a book club telling everyone about a café they like, which happens to sponsor the club.
An example
A mattress brand pays a US$25 CPM for mid-roll host reads on a show with 200,000 downloads per episode: US$5,000 per episode.
Related terms
Dynamic ad insertion (DAI)
Dynamic ad insertion (DAI) is technology that inserts ads into audio or video content at the moment it is downloaded or streamed, so different listeners or viewers can receive different, up-to-date ads.
Programmatic audio
Programmatic audio is buying and selling audio ads, on music streaming, digital radio and podcasts, through automated platforms and real-time or deal-based auctions.
CPM (cost per mille)
CPM (cost per mille) is the price an advertiser pays for one thousand ad impressions; "mille" is Latin for thousand.
Attribution
Attribution is the process of assigning credit for a conversion, such as a sale, sign-up or install, to the ads, channels or touchpoints that a customer encountered beforehand.
IAB Tech Lab
IAB Tech Lab is the non-profit standards body for digital advertising technology, founded in 2014, which develops specifications such as OpenRTB, VAST, ads.txt, sellers.json and the Open Measurement SDK.
Sources: IAB Tech Lab: Podcast Measurement Technical Guidelines