We talk a lot about podcast ads (I mean, it’s basically our bread and butter); what makes a good Host-Read ad, what’s the goldilocks number for ads per break, and even the impact the time of year has on ads. But we’ve never really dove into how to structure your ads for the best outcome.
Well, wonder no longer! We’re going to be exploring everything you need to know to maximize your ad revenue!
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Understanding Ad Positions
The first step to optimizing your ad placement is to understand the different positions an ad can even be placed. There are three spots in an episode where an ad break can occur: Pre-Roll, Mid-Roll, and Post-Roll. As you can probably guess from the names, these positions are the beginning, middle, and end of an episode respectively.
Where these positions fall in your episode depends on the total length of said episode:
For episodes 20 minutes or longer:
- Pre-Roll is the first 5 minutes of your episode
- Mid-Roll is any point after the first 5 minutes and before the last 5 minutes
- Post-Roll is the last 5 minutes of your episode
For episodes less than 20 minutes:
- Pre-Roll is the first 10% of your episode
- Mid-Roll is after the first 10% and before the last 10%
- Post-Roll is the last 10% of your episode
Now that we know what the three ad positions are and where they are placed, the next area to focus on is price.
Let’s Talk Rates
Podcast advertising revenue is based on a metric called CPM (cost per thousand downloads). This means that if an ad position is priced at $10, then you would earn $10 for every 1 thousand downloads (or impressions) you collect.
Each position is priced just a little bit differently, though Pre-Roll & Post-Roll ads are often priced the same. Below are the positions priced highest to lowest:
- Mid-Roll
- Pre-Roll
- Post-Roll
You may be wondering why the positions are priced differently – isn’t any spot in your episode good enough? Well, according to most data (quantitative and anecdotal), not exactly! The answer lies with the behavior of your audience.
A majority of podcast listeners are most engaged throughout the middle of the podcast. Additionally, many listeners are multitasking when tuning in your show. They may be doing chores, driving in traffic, or walking to their next class. If an ad break occurs while they’re multitasking like this, they’re less likely to skip them. (They’re even more less likely to skip them if you create an engaging and fun ad to listen to!) All of these reasons are why Mid-Roll ads are priced the highest amongst them all.
Pre-Roll follows behind and is sometimes priced higher than Post-Roll. Similar to Mid-Roll, if a listener is “binging” your content, then they are less likely to skip over ad breaks meaning they’ll hear ads in these positions. But if your show isn’t conducive to binging, then it’s quite possible listeners will leave before the end credits. This is why selecting the right moments in your podcast for ads is so crucial. But how do you find the right moment?
Perfect Placements for Each Position
While you can just drop ad breaks at the very beginning, the exact middle, and the tail end of your episodes, it’s better to put some thought into the exact right moments to place an ad. Thinking strategically about where to place the ad breaks can help you to maximize your advertising revenue!
Mid-Roll
Let’s start with Mid-Roll as it’s arguably the most important one. Here is where the most flexibility lies when placing ads. You can place it as early or as late as you’d like in the Mid-Roll span. But let’s think about what would be the most effective.
If your show is more conversational, and less structured, then a good place to insert an ad break would be during a natural lull in conversation. This could be after a satisfying end to a story, or a fun answer from a guest. Anywhere that makes sense for a break.
With Dynamic Insertion, you could also note the appearance of an ad break by placing custom audio right before it instead of having to monitor possible breaks in real-time, potentially interrupting the flow of your podcast. If you find a natural lull in conversation, you can insert a piece of custom audio that says “We’ll be right back after a word from our sponsors”, for example, and then place a Dynamic Ad Block right after it. Seamlessly blending in the ad break without interrupting your show or catching your listeners off guard.
If you’re show is more structured, such as a through-line narrative or a script, then a great place to insert an ad is directly after a segment ends. Similar to the above example, you can create a piece of custom audio to let your audience know it’s time for an ad break. You could even treat the ad break itself as its own segment. Make it sound like the rest of your podcast – if you have a narratively-driven show, then have one of your characters read the ad to help it seamlessly blend into your podcast. Don’t be afraid to add in your own personality during ads, Brands are often appreciative of the authenticity and effort!
Pre-Roll
Your first inclination may be to insert the ads right at the very beginning of the episode, but that may not be the most effective place for them. There may be some listeners who are keen to skip ads if that’s the first thing they hear. Instead, try inserting them directly after your shows’ intro sequence(s). For example, “Welcome to RedCircle Insider! Today, we’re going to talk about maximizing your revenue by figuring out the most effective spot to place ads. But first a quick word from our sponsors.”
This spot also offers a good opportunity to talk about how ads help to support your show. Authenticity resonates well with podcast listeners, so letting them know that ads help to support the show they love can incentivize them to skip the skip button. One of our core pillars is to “Be Real”, so be real with your audience and give them a chance to support you!
Post-Roll
This one can seem a bit tough since there are folks who skip ads at the very end of shows since there’s no more show to hear! A good way to combat this is to insert ads just before the end of your episode rather than at the very end. You could, for example, say something like “We’ll wrap up the show after these last words from our sponsors”, or “Find out what’s coming next after a few words from our sponsors.” The cliffhanger ending especially helps to keep listeners around. Of course, you want to be careful not to abuse that as folks may become annoyed by the tactic!
Similar to Pre-Roll, you can also preface the ad break with information on why you run ads.
What about Length?
An important, and sometimes forgotten, question when it comes to podcast ads. How long should the ad actually be for it to be effective without being tiring? The industry standard is 60 seconds (so 1 minute.) But a range of 30 seconds to 90 seconds per ad is good, too.
The length of the ad can also depend on the placement of the ad. Slip into the headphones of your listeners and think about how you’d feel about hearing a 90-second ad at the very beginning of the episode. It’s important to be aware of your listeners’ experience and how they’ll perceive the ad. It’s best to keep ads in the Pre-Roll position at 30 to 60 seconds. Ads that are 90 seconds are best placed in the Mid-Roll position. Post-Roll is similar to Pre-Roll, so stick to 30-60 second ads.
Whew! That was quite the extensive review, but we hope you walk away with new insights!
The key to ideal placement of ads is to really think about the behavior and experience of your audience. Create ad breaks that blend seamlessly into your episodes, be real with them about how ads help to support the production of your show, and be cognizant of listener ad fatigue when selecting positions.
If you’re looking to monetize your show, then look no further! RedCircle can help you boost your revenue and growth!
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