Embedded podcast ads have more than twice the conversion rates of ads that are dynamically inserted. That is according to a new analysis of podcast advertising by Podsights, which examined the actions taken by listeners to 532 podcast ad campaigns between October 2018 and July 2020. The ads were for 232 different brands representing $28 million in spending. The 1.2 billion ad impressions that money bought revealed how effective podcasts were to get listeners to take an action – or what marketers call the conversion rate – such as whether they led listeners to buy a product or download an app.
The Podsights analysis shows the average conversion rate across all campaigns and industries was 1.13%. That may sound low but in reality it is higher than the rate on many social media platforms.
No podcast ad category performed better than retail. Podsights says more than 3% of those who heard a retail ad took some action after hearing a commercial. And four ad categories –personal finance, credit cards, fashion, and meal delivery services – had a conversion rate that topped 2%.
For most brands the ultimate conversion is an actual purchase. To measure that action, Podsights included a purchase pixel allowing it follow someone from exposure to the commercial to other websites. The data shows numbers that should help convince other marketers to spend on podcast ads.
Podsights found average purchase conversion rate was 3.12%. But among the ads that drove a listener to the brand’s website, the conversion rate was more than double that rate – 7.71%. The industries that had the highest purchase rates were human resources, including job search tools, and news and politics, including subscriptions. Podsights explains the low price-point brands tended to have higher conversion rates.
Among those campaigns tracked with the purchase pixel, Podsights was able to calculate that the average campaign had a sales return of $2.42 for every dollar spent on advertising.
Not every brand is seeking a purchase, some just want to generate leads and the analysis looked at how well podcast ads performed against that metric. Again using a lead pixel inside the ad, Podsights was able to show the average lead conversion rate was 9.25% among people that were driven to the brand’s website. Personal finance, retail and meal delivery services performed the best. “The performance finance industry saw an uptick in consumer interest during the height of COVID-19,” the report says.
Other marketers just want their mobile app installed and Podsights said podcast advertising delivered there, too. The average app install rate for attributed visitors was 3.24%. Banking and finance apps did the best, followed by entertainment and healthy living apps.
A critical element to how well any ad works is the frequency at which it is heard. And the Podsights study shows the average frequency across the podcast campaigns was 2.68-times. And 93% of all campaigns had an average household frequency rate of between one- and five-times. The technology and home security segments had the highest average frequency. The report says that makes sense since higher-priced products require more time to convert a customer to making a purchase.
Download the full Podsights report HERE.