Will advertising rates crumble in podcasting?

microphone for podcasting

Those of us who remember the Web 1.0 world also remember when you could get decent CPM rates for banner ads. Yes, that seems like a lifetime ago, but prior to the Great Recession and the introduction of the iPhone and social media, website owners and bloggers could make decent money on internet advertising.

Tom Webster poses the question as to whether the same thing can happen in the podcasting business:

Great content is expensive to produce, and great advertising native to that content’s form and delivery is well worth a premium. But if several large players in the space start taking poorly executed, irrelevant ads at ultra-low (for podcasting) CPMs, that’s going to have repercussions on the economic feasibility of great audio content.

And that, my friends, is what worries me the most.

Ad delivery technology is progressing rapidly in podcasting, with companies like Megaphone leading the way with dynamic ad insertion and programmatic ads that make it easy to pump ads through tons of podcast episodes. Over time, ad rates for these ads will come down, and then we’ll see if podcasters can still command premium CPMs for host-read ads. So far, the intimacy of podcasting and listener loyalty to hosts has led to excellent performance for these ads. Time will tell . . .


Smart ads from NBC

I’m seeing some great banner ads from NBC promoting the new Jay Leno Show. The purple banners have a digital clock counting down the hours, minutes and seconds till the next episode that evening. The time element is something I thought we’d see much sooner in the online ad world. It’s very easy to program these things, and you can target the ads based on time zones to avoid any confusion.

Imagine using this concept for breakfast, lunch and dinner. McDonalds can run ads early in the morning featuring its breakfast menu, perhaps even a coupon, and then for lunch they can begin running ads at 11 AM featuring a juicy burger.

Bars can do Happy Hour countdowns starting on Friday afternoons.

The possibilities are endless. Hopefully this will become a trend and shift even more ad dollars to the Internet.


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