By Kristen Coseo and Ally Kandel

We’ve discussed why your brand needs to embrace podcast advertising and diversify spending into the medium. Let’s say you’ve made the case for investment and are allocating budget towards podcasts, now what?

Podcast advertising isn’t as simple as looking at Apple’s Top 100 and spending your ad money on a popular show. In fact, more often than not, it is a bad business practice.

When it comes to media buying, there are a number of strategies that can determine the impact your ad has on the listener. There are also subtle differences that you need to know before you put your strategy together.

By being aware of the differences between dynamic and baked-in ads, tracking strategies, and the nuances of the podcast industry, advertisers can make better-informed decisions and navigate the podcast advertising landscape with success.

Dynamic ad insertion vs. baked-in podcast advertising: What’s the difference and how does it affect your messaging?

Podcast advertising is unique in a way that is similar to influencer marketing. Listeners are likely to trust the host, making the promotional content more believable and impactful and subsequently, leading to sales.

One of the reasons podcasts work so well for advertisers is the way they are implemented into the show. Right now, there are two main ways to go about it. The first, and most popular strategy is baked-in.

Baked-in podcast advertising is a type of podcast advertising where the advertisement is seamlessly integrated into the content of the podcast episode. In this approach, the advertiser’s message is recorded and edited into the podcast episode during the production process, making it sound like a natural part of the show.

Baked-in ads are typically read by the podcast host or another contributor and are often scripted to match the tone and style of the podcast. This style is popular and alluring to brands because it creates authenticity and trust between the host and the listener.

The other option is dynamic ad insertion (DAI).

Dynamic insertion in podcasting refers to the practice of inserting or swapping out specific audio segments within a podcast episode. This allows podcasters to update or customize certain parts of their content without re-recording or re-uploading the entire episode.

Similar to baked-in ads, DAI can also be presented in a host-read format to align with the tone of the show. The difference between a host-read baked-in ad is that it is permanently included in the podcast episode, and a host-read DAI ad is recorded and produced separately and inserted into a full catalog of inventory (old and new episodes).

And while baked-in may still be the preference of some advertisers, brands should re-think dynamic insertion based on their strategy due to the benefits it brings.

Dynamic ad insertion benefits unlock targeted audiences and more control and flexibility

Dynamic ad insertion offers advertisers the advantage of connecting with the complete audience of a podcast, irrespective of the specific episode a listener chooses to play. Broadcasting your advertisement throughout the entire archive of a show enables you to not only reach listeners who engage with new episodes but also new listeners who are getting familiar with the podcast, streaming the back catalog of the old shows.

The strategy also offers more control depending on how your advertisement is performing. Real-time ad management features allow advertisers to effortlessly track ad performance and make necessary adjustments on the fly. Should an ad fail to connect with the audience, or if podcast host messaging is flagged for brand safety, you can swiftly swap it or remove.

Dynamic insertion also opens new possibilities for scalable and targeted podcast advertising. Unlike baked-in podcast ads, which make it nearly impossible to execute extensive campaigns across multiple shows or purchase audience segments at scale, advertisers can now pinpoint their desired audience using ad networks and deliver tailored advertisements to specific groups of listeners.

DAI proves highly effective for brands that incorporate timely messaging in their advertisements. It is particularly beneficial for brands aiming to capitalize on seasonal trends, such as the holiday shopping season or Mother’s Day, as well as major events like the Super Bowl.

Promo Codes are still popular for some brands, but is it the best way to track the effectiveness of your ad?

Podcast advertisers use promo codes for a couple of reasons. First, it helps them track the effectiveness of their ads. By assigning unique promo codes to different podcasts or advertisers, they can see which ones are driving the most conversions. Second, promo codes provide an incentive for listeners. People love a good deal, and a special code makes them feel like they’re getting an exclusive offer.

But one of the bigger flaws of baked-in ads is that advertisements are on podcast episodes indefinitely. This can be a problem if you are using time-sensitive promo codes. While a person may respond to an advertisement they hear on their favorite podcast, they don’t always remember the promo code at checkout. Promo codes can also be shared or leaked onto websites that share coupons and discounts.

If you are looking for better attribution, pixel tracking will give you the best idea as to how your podcast ad performed. Pixel tracking technology has improved greatly over the past couple of years and is more reliable than any other way to track. The majority of all DAI shows can be tracked versus baked-in still seeing limitations.

As opposed to promo codes, pixel tracking is especially beneficial for campaigns focused on building brand awareness. Pixel tracking offers full coverage by tracking listens to website or app actions and enables full funnel measurement of the direct return on ad spends.

Crafting a successful podcast advertising approach

Depending on what strategy you ultimately choose, it is important to remember that there is no one-size-fits-all blueprint that you can keep going back to for every campaign.

But there are a few important tenets that you can use to form your podcasting advertising foundation if you are new to the space.

When you are deciding what podcast makes sense for your advertisement campaign and will maximize audience reach, you need to be aware that popular shows that rank high on podcast charts don’t necessarily correlate to better performance or success. Instead, look for a podcast that has a combination of:

• Relevance: Choose podcasts that align with your brand and resonate with your target audience.

• Audience Size and Demographics: Larger audiences offer a broader reach, while niche podcasts may give you a more dedicated and specific audience that’s a better fit for your brand.

• Listener Engagement: A podcast with an active and responsive audience is more likely to yield favorable results for advertising.

• Aligning the right content and podcast hosts: Recognize the pivotal role of the content and podcast hosts in the success of a show. Ads are especially effective when they align with the theme of the content or the background and interests of the host. When podcast hosts genuinely appreciate your product or company, it enhances the authenticity of your brand promotion.

If you are planning your advertising budget, go all in. If you are just dabbling with a small budget, you’re going to move the needle, but it will be minimal because the podcasting space is so large. Investing in a substantial budget to achieve significant results and podcast advertising doesn’t always provide many instant conversions; it requires time to see measurable results.

You’re going to need that time to get your brand message to resonate with a new audience and build up frequency. Time also factors into getting a sizable audience and determining decisions about the effectiveness of your ad or if the particular podcast is a fit.

Overall, when it comes down to how to advertise on podcasts, making choices like dynamic and baked-in ads, or show size should be based on your goals and what you are trying to target.

If you are looking to make an impact in the podcast advertising space, Ocean Media delivers successful results by tailoring strategies that are unique to brand goals. Learn more about how we approach strategy, planning, and buying, by contacting us.