The rise of podcasts presents a golden opportunity for radio advertising sales reps. Some of us may think pods are competition, and if your company doesn’t have a solid network of pods, that may be true, but for the larger radio operators who have a podcast network, the reality is that the time to start selling pods is now. Make sure you take this opportunity to your largest clients who aren’t living or dying on any one advertising investment. Here are the latest developments from Q2 and Magellan AI:
Podcasts Spend Surge
With a 22% increase in ad spending year-over-year, the podcasting wave is reaching new heights. The Interactive Advertising Bureau (IAB) forecasts that podcast ad revenues will eclipse $2 billion in 2024. Broadcast radio ad revenues are under $12 billion and dropping.
Too many Podcasts?
Despite over 5 million podcasts being available globally, only 156,000 qualify as active by releasing new content weekly. This group, each with over ten episodes and recent updates, doesn’t sound too overwhelming. Fifteen thousand five hundred radio stations are broadcasting in the USA. That’s millions of hours of potential sponsorship. The average pod is about 45 minutes.
Can Pods Show Me the $?
The top 500 podcasts attract an average of $252,000 in ad spend per month, with even those ranked 501 to 3000 earning a respectable $30,000 monthly. Can you NOT afford to add 30k a month to your billing?
Spots and Dots
Podcasts are not just kicking out traditional 30’s. Advertisers are choosing from 60’s and host-read endorsements to shorter lengths. Advertiser exclusives are not hard to come by as well. Title sponsorship, programmatic, and direct response are also great plays.
Gambling IS a Winner
The gaming industry has seen its podcast ad spending more than triple. Brands like Monopoly Go and Senua’s Saga have successfully tapped into podcasts. Hit those gaming companies up and match them with a gaming pod they can own to drive guests, engagement, and sales.
Be Heard
Podcasts dedicate 9.11% of episode time to ads—growing by 5.95% year-over-year. So, messages are heard without overwhelming listeners. Even a 14-minute-per-hour load on the average radio station is 2x+ as much clutter as pods. If they complain about clutter, remember your pods!
With their proven growth, targeted reach, and engaged audiences, podcasts are not just a trend but a strategic complement to traditional radio advertising. Of course, you need to match the podcast investment with the right client. Clients with several locations, e-commerce-based or in multiple states, can profit. Find more Q2 podcasting insights on Magellan Ai’s website.
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
