How Much Does It Cost to Advertise on a Podcast?

Think of a topic, niche, product, skill, or anything in between. Really, it could be anything.

Got it? Great. We’d be willing to bet there’s a podcast about it.

Brands are finding that these audiences are more valuable because of their increased engagement level compared with other media, and it comes at a fraction of the cost.

It’s an opportunity for brands in need of flexible budget options to reach new audiences. And since it’s scaling so quickly, growing brands can scale campaigns easily. 

There is much more to podcast advertising than the stereotypical mid-roll host reads. With the diversity of creative options and audiences, podcasting offers options for any budget. 

As fast as the industry is expanding, the real question is: How much does it cost not to advertise on a podcast? 

How Much Does Podcast Advertising Typically Cost?

As much as we wish there were a straightforward answer, there isn’t. 

But we can tell you that podcasts are accessible on almost any budget. For instance, SiriusXM Media has a self-service option for advertisers needing budget flexibility called AudioGo, where placements begin as low as $250.

So, how much does it cost to advertise on a podcast? That depends. To better understand, consider your organization's budget and needs as you review the factors influencing price.

Which Factors Determine Podcast Advertising Costs?

If you want to get a basic idea of what a podcast advertising investment might look like, start by asking yourself these four questions:

• Who do you want to target?

• Do you want your message to be broadcast to a specific audience or within a particular show?

• Where will you place the ad within the show?

• Which type of ad will you produce?

Target Audience

The specific psychographic data makes podcast audiences valuable and is a large part of what determines the price. These are the factors that affect the cost of your target audience:

• Salary and professions

• Lifestyle segments

• Purchase intent

• Geographic location

• Categorical location

• Mood

• Current activity

• Interest

Typically, an audience becomes more valuable as it becomes more specific or in higher demand.

Show Audience Size

When targeting single shows, especially when it comes to host-read ads, the size and quality of the show’s audience will factor into the overall price point for ad placement.

Finding the sweet spot between your audience and your budget is where podcast advertising excels. Smaller, more affordable audiences aren’t necessarily less profitable audiences.

Ad Placement

Most podcasts have three placement types: pre-roll, mid-roll, and post-roll. 

Mid-roll ads are placed in the middle of the show when the audience is most engaged. These ads have a better chance of reaching the audience's largest, most engaged portion. But because mid-roll ads perform much better, they are more expensive. 

Pre- and post-roll ads don’t perform as well, but they are a fraction of the cost and have their own unique benefits. Pre-roll ads are an affordable way to raise brand awareness and incremental web engagement, while post-roll ads are great for driving incremental purchase conversions.

Ad Format

Ad formats also break into three categories: host-read, announcer-read, and pre-produced. 

Host-read ads typically perform best because podcast hosts feel a sense of loyalty and connection to hosts. And, you guessed it, host-read ads cost more than the other two formats. 

More than 75% of podcast listeners report “not minding” podcast ads because they ultimately support the show and the host. A our recent Podsurvey study found that 91% of podcast listeners take some form of action after hearing an ad on a podcast they like.

Listeners engage with more than just host-read ads. They also reported being open to and taking action after hearing announcer-read ads. Announcer-read ads can be less expensive and easier to scale, opening up options for advertisers with tight or inconsistent budgets. 

Pre-produced ads offer the most budget flexibility since you are responsible for developing and delivering the creative content. But you’ll still likely have to pay something to create the ad.

Is Podcast Advertising Worth It for My Business?

Absolutely. Well, probably. 

If you’re a mom-and-pop shop that operates a cash-only, in-person business in a small town, you may not benefit from podcast advertising.

But, even then, there is probably a podcast about your town or heavily listened to in your town. That’s an incredibly specific and engaged audience.

Targeting Capabilities

A news broadcast may cover 10 or 20 news stories during a 60-minute broadcast, but many of the most popular podcasts will spend an entire season focusing on just one of those stories. 

Podcasts allow creators and storytellers to dive deep into topics, which means audiences self-identify the things they are most interested in—simply listening signals their interests, needs, and pain points.

Smaller audiences can often be more affordable, but the very nature of podcasts makes those audiences more valuable.

Engagement

A 2023 Podsurvey survey of the SiriusXM Podcast Network found that 97% of podcast listeners report listening weekly, and more than one-third listen daily. The same study found podcast listeners are three times more likely to pay active attention to ads than traditional mass media ads. Podcasts even garner twice as much attention as modern media, such as online streaming and social media.

Medium Growth

Last year saw a 61% increase in podcast downloads and an even larger increase in unique Simplecast podcast listeners. Consistent year-over-year growth, more than a decade into the medium’s lifespan, signals podcasts are here to stay.

Discover Podcast Advertising with the SiriusXM Podcast Network

SiriusXM Media gives brands access to engaged audiences across thousands of selection criteria combinations, whether they are a small company looking to benefit from the low cost of entry or an established brand ready to scale a campaign across shows, networks, and platforms. 

AudioGo allows brands to set budgets as low as $250, upload their audio (or use real actors for as little as $10), and adjust audiences as needed based on age, gender, location, language, music or podcast genre, and up to 221 different interests and user personas.

For brands ready to dive in, SiriusXM Media and its in-house creative team at Studio Resonate can help them use dynamically inserted ads that connect with the right audience at the right time and scale those ads across all of SiriusXM’s digital audio platforms. Let’s talk.