How Much do Podcast Ads Cost? — 2024 Podcast Advertising Rates

This article breaks down industry-standard podcast advertising rates across ad types, how costs vary across shows, and how to verify pricing.

Want access to podcast reach, demographics, contact information, and more? Sign up for Podchaser Pro to unlock the most valuable podcasting insights in the industry. It’s perfect for supercharging any podcast ad campaign. Learn more.

Table of Contents

• Podcast’s Projected Ad Revenue in 2023 and Beyond
• Is Podcast Advertising Effective?
• Average Podcast Advertising Rates in 2023
• Variables in Podcast Advertising Rates
• Getting Started Podcast Advertising with Podchaser Pro

Podcasting’s Projected Ad Revenue in 2023 and Beyond

According to the Internet Advertising Bureau, the podcasting industry experienced a 19% increase in advertising revenue in 2022 with no signs of slowing for the rest of 2023. The same study showed significant milestones expected for podcasting.

• $2b projected ad revenue in 2023
• $3.2b projected ad revenue by 2024
• $4b projected ad revenue by 2025

Is Podcast Advertising Effective?

Short answer is yes, but only if you do it right. If you’re not convinced by the avalanche of money companies are spending on podcast advertising, let’s break down some more stats.

To start, 192 million Americans have listened to a podcast, with 47% of those listening within the last month and 34% within the last week. That’s a huge audience!

And that huge audience is trusts and buys from podcast ads. Acast found that podcast ads are ranked #1 is audience receptivity, and attentiveness – handily beating most established advertising mediums like TV and digital ads. Plus podcasts have a 60% higher ROAS (return on ad spend) than any other channel.

To top it all off, podcast ads are still underutilized. Acast found 44% of podcast ad spend goes to the top 500 shows, but these shows only account for 12% of monthly reach. That means that 88% of the podcast audience is still untapped for podcast advertising.

If you want to read more about the effectiveness of podcast advertising, check out our full article.

Average Podcast Advertising Rates in 2024

Updated: September 19th, 2024.

The following represents the average CPM rates for standard, host-read pre-roll, mid-roll, and post-roll ads. Note that CPM, “cost per mille,” in this instance refers to the ad cost per 1,000 listens.

Podcast Pre-roll Ad CPM

• The average 15-25 second pre-roll ad spot will have a $15 CPM.
• It’ll cost approximately $1,500 to purchase a pre-roll ad on a podcast that generates 100,000 listens.

Podcast Mid-roll Ad CPM

• The average 30-60 second mid-roll ad spot will have a $30 CPM.
• It’ll cost approximately $3,000 to purchase a mid-roll ad on a podcast that generates 100,000 listens.

Podcast Post-roll Ad CPM

• The average 15-25 second post-roll (also known as an “end-roll”) ad spot will have a $10 CPM.
• It’ll cost approximately $1,000 to purchase a post-roll ad on a podcast that generates 100,000 listens.

Is Podcast Advertising Effective?

It’s the million dollar question brands ask themselves. Dozens of brands have built huge businesses thanks in part to the podcast advertising investments.

Brands like Athletic Greens, BetterHelp, and Bombas have leveraged podcast ads for years. So it must be effective, right?

Here’s data uncovering podcast advertising effectiveness.

Podcast Advertising Effectiveness Data (Nothing Else Compares)

According to a recent OnePulse study, podcast listeners are:

• 2.8x more likely to trust podcasts than social media
• 63% more likely to say podcasts have more relevant ads than streaming music
• 2.3x more likely to say podcasts make them happier than social media
• 2.2x more likely to say podcasts have more diverse content choices than cable TV
• 3.5x more likely to say podcasts are better at promoting diverse voices than radio
• 2.0x more likely to say podcasts have more enjoyable ads to listen to than radio

Dentsu and Lumen Podcast Advertising Effectiveness

New research from Dentsu and Lumen highlights why audio and podcasts deserve higher budget shares:

• Audio has +56% greater attentiveness scores versus Dentsu norms
• Audio generates +8% greater brand recall versus Dentsu norms
• Audio generates +67% greater brand choice uplift than Dentsu norms
• Among audio platforms, podcasts exhibit the highest concentration levels
• Podcast ads are the least avoided and skipped (29% never skip podcast ads/skip less than half of the time)

Return On Ad Spend Vs. Other Media

A greater share of marketers say that $1 spent on podcast advertising is more likely to return $6+ than $1 spent on other media

• Podcasts have a 1.25x return on invest advantage over social media advertising
• Podcasts have a 1.25x return on invest advantage over online video advertising
• Print is the least likely medium to provide advertising return on investment

According to this data, podcast advertising has a higher ROAS than any other media.

How Likely are Podcast Listeners to Purchase a Product or Service they Hear Advertised on Podcasts?

According to Sounds Profitable, the % of podcast listeners to very/somewhat likely purchase a product or service thanks to a podcast ad is 53%. That’s higher than YouTube ads (49%) and streaming TV (46%).

Podcast Ads are Outperforming All Other Media in Long-Term ROAS

Combining the short-term return on ad spend with the sales effect resulting from a media investment improving brand metrics forms the basis for long-term return on ad spend. Again, podcasts provide the highest return, with a long-term ROAS of 4.9. This means that $1 invested in podcast advertising today yields $4.9 in long-term sales. The second-best were social media (4.6x) and online display (4.6x).

Podcast Ads are the Most Influential Type of Advertising

When asked what type of ads are most likely to influence you to buy a product from after seeing/hearting the ads,

• 47% said podcast ads have the most product purchase influence
• Listeners are nearly 5x more likely to say podcast ads are more influential than radio ads

Variables in Podcast Advertising Rates

What we presented are averages, but there are several variables that may alter the cost of a specific ad spot. Here are the most common reasons why a podcast ad rate may be more or less than the average advertising rate.

• Podcast Popularity (listens, social influence, Power Score™, etc)
  • If a podcast is VERY popular, their CPMs will be higher than the average, and vice versa for less popular podcasts
• What platform you use to buy podcast ads
• Ad length (longer is more expensive)
• Host-read vs. traditional ads vs. dynamic insertion ads
• Number of purchased ad spots per episode
• Campaign length
• Podcaster’s discretion

Getting Started Podcast Advertising with Podchaser Pro

Even with defined averages, ad costs vary from podcast to podcast, and tracking down relevant data and contact information for a direct quote can be a headache. So, skip the hassle of continuous research and try Podchaser Pro to quickly see a podcast’s reach, ad inventory, and pricing!

Our podcast contact database gives you access to podcasting’s most valuable insights, including reach, demographics, chart position, verified contact information, and much more – giving you the power to make the right decision every time. Forbes called it “an incredibly useful tool for podcast marketing or booking guests.”

Book a Free Demo of Podchaser Pro

Free eBook Download: The Ultimate Guide to Effective Podcast Advertising in 2024

Download eBook

Read More About Podcast Advertising and PR

• 7 Ways PR Agencies Can Leverage Podcasts
• How to Make Your Podcast Attractive to Advertisers
• Podcast Ads that Make Money
• Podcast Interview Marketing (Is This What Your Business Needs?)