![]() Meanwhile, Megaphone’s advertising platform, Targeted Marketplace– which lists Target, Walmart and Starbucks among its users - has the early characteristics of a self-serve model. In its announcement, Spotify said that once the transaction closes, streaming ad insertion will be available to all podcast publishers across Megaphone, making it easier for them to run ads. That way, they can better confirm if a customer did indeed purchase or visit their website after listening to a podcast ad. That also makes it difficult to calculate the true cost to acquire customers through podcast ads.īoth Yip and Rouzan said that the biggest pain-point in podcast advertising that they’d like to see Spotify and other platforms address is develop a pixel tool, similar to what Facebook and other paid social platforms have, that can track user activity across platforms. But not all customers fill out the survey, and that doesn’t tell MeUndies whether or not customers bought the product after listening to the ad for the first time, or the fifth time. Yip said that MeUndies tries to track attribution through a post-purchase survey, asking customers how they first heard about MeUndies, listing a podcast ad as one of the examples. One of the drawbacks of podcast advertising, however, is that it’s difficult to track which users end up purchasing after listening to a podcast ad - and after how many listens. Podcasters may charge as little as $100, and up to tens of thousands of dollars for an ad. “There’s a big range in prices for both podcasts and TV, but TV costs more because the numbers are generally bigger in terms of audience and therefore also the total $ you end up paying pay,” said Toy. Podcast ads are typically priced on a CPM basis, going off of downloads per episode of the show, and will vary depending upon when in the show the ad runs. But Yip said she believes the somewhat onerous process worth it “When you are listening to a podcast, you are really engaged.” Conversely, someone listening to music on Spotify or on the radio may only be half paying attention. It’s a more labor-intensive process of creating an ad than, say, on Facebook - where advertisers can upload ad creative, indicate who they want to target and let Facebook take care of the rest. ![]() But, that “the hosts will usually riff off of our scripts.” We’ll usually have something like “hey, talk about the loungewear we just gave you, or talk about the membership program,” here. Typically, once MeUndies (and an agency) decide which podcasts to run ads on, Yip said that the company will send product to the hosts for them to test out, as well as a script with what Yip calls “thought starters,” of what they want the hosts to talk about. MeUndies has run ads on Joe Rogan’s podcast, as well as Armchair Expert with Dax Shepherd. Yip declined to say how much of MeUndies’ advertising budget goes towards podcast ads, but said it is one of MeUndies’ largest advertising channels, behind paid social. “We just noticed that people who listened to podcasts, they are a little bit more affluent, a little bit more I would say educated,” said Yip. Initially, Yip said that podcast ads allowed MeUndies to reach a broader audience, at a less expensive price than a TV ad. ![]() Meagan Yip, director of growth marketing for MeUndies, estimated that the company first started running podcast ads around 2015. If Spotify can do the same, it stands to bring in a ton of revenue. Facebook and Google have created multi-billion advertising businesses building a self-serve advertising platform that two-person e-commerce startups and Fortune 500 companies alike can use. In building out a podcast advertising platform, Spotify is following the money, said Chris Toy, CEO and co-founder of freelance marketing platform MarketerHire. But a self-serve platform would also sit in direct opposition to what DTC startups say is one of the biggest benefits of podcast advertising: the ability to work one-on-one with a host to create a unique ad. In its press release, Spotify said the acquisition is about “delivering scale to podcast advertisers.” That could help younger DTC startups test out podcast advertising earlier. Namely, it signals that Spotify is seeking to build more of a self-serving advertising platform for podcasts. According to IAB, DTC startups make up the largest percentage of top podcast advertisers at 22%, and the Megaphone acquisition could have big implications for them. On Tuesday, Spotify announced that it is acquiring podcast advertising and publishing platform Megaphone, the latest sign that podcast ads are the next hot area for investment for tech companies. ![]()
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