(Article Updated July 7, 2019) Simply put “Dynamically Inserted Advertising” puts audio ads or audio promos in podcast episode downloads and it stays there for a certain amount of time and then it stops being inserted when it’s reached a certain number of purchased impressions via downloads and plays.
“But one must be hyper-cautious of annoying audiences with bad ads and too many ads with this technology. The tech is not so much the issue, but how it is used.”
Ideally, all ads in podcasts should be read by the podcast host or another experienced podcast host doing the read for other podcasts as as I call talent reads. This approach can work with dynamic ad insertion as well as the traditional baked in versions that are in the media file forever. Keep in mind the use of baked in ads leaves advertising cash on the table as archives can be fully monetized with dynamic ad insertion.
One needs to be careful to make sure the listener experience isn’t degraded at all from this ad delivery method. One must be mindful of where the ad break is placed inside or at the beginning of the content. One also needs to be mindful that using music fades around dynamic ads must be thought through and most of the time doing soft transition breaks is best as ads may not always in the show at playback.
Some may run dynamic ad insertion with more traditional radio ad type spots with the big brand advertisers and those may not be as well received by listeners.
But, if talent/host read ads are done correctly they would not disrupt the long-standing host read type of authentic experience listeners to podcasts have become accustomed too.
Ideally the listener would never know you are using ad insertion to deliver a host read because it sounds the same as baked in host read ads they are used to hearing.
“Given all the warnings, dynamic ad insertion is rapidly becoming the de facto way of doing ad business in the Podcasting space, but some media buyers are resisting the shift from baked in live host read ads. The ad buyers have gotten used to getting free archival impressions for the life of episodes with baked in ads”
Reality is that with dynamic ad insertion there will be a flood of inventory in the space and the CPM rates will likely go down until the IAB v.2 podcast metrics certification of podcast hosting platforms process gets wider adoption to see CPM (Ad Cost Per Thousand) in podcasting go up and I am confident they will as we are seeing signs of it already.
Forward-looking podcasters will figure out what their premium content offering will see CPM or ad revenue climb to impressive levels as advertisers see acceleration of ROI as the counting of audience numbers begins to more broadly reflect the real truth.
Podcasters will still need to diversify by combining audio with video and click-through sponsored social post ads, inspire listening audiences to word of mouth share podcast listen recommendations is a big part of the solution. Many will be able to sell subscriptions, live performance tickets and other products that add value to their listeners and generate additional revenue.
This growing form of advertising in podcasts will impact listeners and content creators in a positive or negative way depending on how it is implemented.
Keep an ear out for it and time will tell if it turns out positive or negative.