6 must know terms in the podcast advertising industry

by | Dec 2, 2022 | blog, Podcast Monetization

As the podcasting realm continues to expand, the market is being flooded with tons of information. There is no shortage of opportunity to monetize on podcasts, but with that abundance of opportunity and information comes confusion. Fear not though, as today I will be taking you through 8 key terms commonly tossed around regarding podcast monetization.

1.CPM

CPM, or cost per mille, is the rate advertisers pay for every 1,000 impressions. This rate varies depending on the podcast, and serves as a valuable way of determining your target size and budget. To learn more about costs, read What does it cost to sponsor a podcast? – Modern Stoa.

2. Pre-roll, Mid-roll and Post-roll ads

Pre-roll ads are played at the beginning of an episode. These are usually more expensive because they are more likely to be listened to in their entirety. Mid-roll ads fall in the middle of the podcast, which form a natural break in the podcast. Post-roll ads are run at the end of the podcast, serving as a way to end the podcast. Post-roll ads are often falsely accused of not having the same effects due to their nature, but podcast listeners are statistically proven to listen to the entire podcast regularly.

3. CTA

CTA stands for call to action. Nearly every podcast episode contains at least one, and they are commonly utilized to boost the creators’ other social media accounts. Call to action can also come in the form of advertising, although they are not exactly the same. When podcasts hosts call their audiences to do something, they are generally apt to trusting the creator. This is one of the benefits of host-read ads.

4. CPA

Don’t worry, I’m not talking about accounting. CPA in our case means cost per acquisition. The formula for determining CPA is the total ad cost divided by the conversions that resulted from the advertisement. Sponsors want to drive this number as low as possible to most efficiently generate sales.

5. Show notes

The show notes are a few phrases or sentences that the podcast host creates to describe the episode. Oftentimes sponsors make deals to link their website or social media in the show notes to boost traffic.

6. Branded Content

Branded content is created by the podcaster to specifically promote the sponsor’s brand. Rather than just inserting a program read ad, or creating a script for a host-read ad, the content is focused on promoting the brand’s product.

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