Test and Learn: Is Podcast Advertising a Good Fit for Your Brand?

Do you typically have a podcast in your ear while commuting to the office or cooking dinner? If so, you’re one of the 100 million Americans that listen to podcasts weekly. 

Whether you’re into sports, news, or self-help, or something much more niche, there’s something for you. And more recently, podcasts have moved from an individual, private endeavor to having a larger impact on cultural conversation. 

For marketers, the organic nature of podcasts offers a unique opportunity to engage meaningfully with their audience, while the reach and specificity of the channel make it suitable for many different types of companies and industries. 

And with the cultural influence podcasts have, there’s an opportunity to put your brand front and center. Some ads, like Mailchimp’s ad spot at the beginning of Serial, even become cult favorites and reference points long after the drop.

Let’s take a look at the growing influence of podcasts, which advertisers should leverage the channel (and when), how to conduct a channel test, and lastly—how to measure success.

The influence of podcasts

Speaking at SXSW 2025, Krystina Rubino, the GM of our offline marketing practice, touted podcasts—and their ads—as an undeniable influence on society that impact even the largest events:

“Regardless of political affiliation, you cannot discount the impact that the podcast channel had on the 2024 presidential election. And few people saw it coming, except for the people who very wisely booked their candidate on some of the most scaled shows in the medium.” —Krystina Rubino, GM, Offline Marketing Practice, Right Side Up

(Make sure to check out Krystina’s entire session; it is chockfull of valuable insights stemming from over a decade of experience in offline marketing.)

Want more proof that podcasts have fully embedded themselves in pop culture? Krystina says to look no further than SNL’s several skits targeting “bros with a mic.” When such a cultural institution spoofs your medium, you’ve officially joined the zeitgeist.

Advertisers have taken note of this shift. According to the 2024 Internet Advertising Revenue Report released by IAB and PwC, podcast ad revenue in the U.S. rose to $2.4 billion in 2024—a 26% year-over-year increase and a growth of nearly a billion dollars compared to 2021. Expand beyond the U.S., and podcasting is a $7.3 billion global industry.

Authentic ads that resonate

The podcast channel is now a mainstay of the consumer's media diet, and we’ll continue to see the impact on culture in a variety of ways. But the true power of podcasts as a marketing channel is the authenticity.  

Buzzword or not, authenticity is the key to a customer’s heart, and the podcast channel allows brands to create some of the most genuine ads out there, according to Krystina. Host-read ads, which hosts can naturally integrate into the content or speak about their personal experience, are especially effective in that aspect.

"What's the magic of the channel? It's the authenticity. People are drawn to authenticity, to honesty—especially in a media environment, where it can be really challenging to find people that you trust and are interested in." —Krystina Rubino

Which brands should try podcast advertising?

With the unique benefits podcast ads have to offer, we highly encourage marketers to consider adding the channel to their media mix. That being said, some brands are a better fit for podcast advertising than others. Let’s explore the key factors that affect your likelihood of success with the channel.

Brands who have scaled major digital channels often make good candidates

With the unique benefits podcast ads have to offer, we highly encourage marketers to consider adding the channel to their media mix. That being said, some brands are a better fit for podcast advertising than others. Let’s explore the key factors that affect your likelihood of success with the channel.

In the early stages of growth, it makes sense to focus on fast-acting channels like PPC and paid social that can deliver quick wins. But, as you scale, those channels saturate, your CAC creeps up—and growth stagnates.

[Related article: How to Lower Your Customer Acquisition Costs (CAC)]

At this point, your growth strategy needs to evolve. That’s when channel diversification kicks in, and “other” channels like podcast, affiliate, radio, and direct mail need to become serious considerations. 

[Related: Download our full guide on how to choose, test, and measure new channels.]

Which types of brands and products are the best fit for podcast ads?

In addition to the company stage, certain products and industries are also naturally better suited for the storytelling nature of podcast ads, where hosts can speak to personal experience and go longer than the typical :60 second spot.

What if you have a highly visual brand? You might naturally be wary that it won’t translate to the audio format, but Krystina says to put that misconception aside, especially when it comes to host-read ads. Podcasters are some of the best storytellers in the world, and you have to trust that they will accurately and authentically (there’s that word again!) convey your brand.

"A lot of visual brands come to us unsure if podcast ads can work for them and I’m like, ‘If only there were people who were really good at painting a picture with words…’ It’s literally what podcasters do!” —Krystina Rubino

There are other considerations to think about before diving in. Below are the typical types of brands or brand features that will make a podcast ad campaign likely to succeed or struggle:

You are likely to find success with podcast ads if…: 

• You’re an emerging DTC ecommerce brand.
• Your product requires education or explanation.
• You’re in a competitive category where early entry can establish dominance.
• You are creating a new category or sub-category.

Podcast ads may not be the best fit for you if…: 

• You’re in a saturated category with limited differentiation.
• Your product has regional availability.
• You are targeting older demographics (55+).
• You heavily rely on last-click attribution as the primary source of truth (a challenge common to most offline channels).

How much budget to put aside for a test

If signs are pointing to potential for a successful campaign, it’s time to decide how much to spend on a first test. As mentioned earlier, testing podcast ads is best for brands who have hit a ceiling with digital channels and are seeking new avenues for growth. With that comes certain budget considerations.

For brands who are spending a few hundred thousand dollars a month in media spend, Krystina recommends investing at least $75,000 to $90,000 for a nine- to twelve-week period. This budget should allow you to test across enough shows and verticals—usually five to seven publishers—and net you some actionable findings.

[Related: See our full guide on podcast media planning for more in-depth budgeting guidance.]

If you have a little more dough to play with, a $125,000–$150,000 test will produce even better results and learnings, according to Krystina.

How to conduct a podcast advertising test

Once you’ve decided to make the leap, you need to conduct a well-crafted test to determine the potential viability of the channel. The last thing you want are inconclusive results, so strategic media choices are key.

[Related: If you want all the details on how to test and measure new channels—including examples, metrics, and frameworks—make sure to download our guide to channel diversification.]

Follow these four (generally chronological) steps for an effective test:

1. Determine the right budget and timing: We went over budget considerations in the last section, but the timing of your test is just as important. Factor in your brand’s seasonality—and avoid competitive periods like holiday seasons to keep CPMs low(er).
2. Be intentional with your media plan: Choose a variety of networks, shows, and genres that align with your intended consumer. This allows you to get insights on what performs or doesn’t, so you can have a path to scale. Too narrow of a media plan, and you may pigeon-hole yourself. 
3. Develop your copy points: One of the best parts of podcast ads is that the hosts are the ones creating your ads for you, which keeps production costs to a minimum. All you need to provide is some copy points, which include things like example introductions, your key message(s), and a call to action. Two tips from Krystina: Keep it under a page and don’t overscript—hosts need the creative freedom to create an ad that will truly resonate with their audience.

Prepare your internal structure and launch your test: Internal structure and readiness are also key to a successful test. In addition to alignment on execution, ensure you are prepared and organized in regards to trafficking materials, onboarding hosts, setting up measurement systems internally (like vanity URLs, promo codes or pixel) . (More on tracking and measurement in the next section.)

Measuring the impact of podcast advertising

The cardinal sin of podcast ad measurement, according to Krystina, is to only look at direct attribution.

“Do not only look at direct attribution to measure podcast ads. First of all, there’s nothing to click on—plus no one is immediately stopping what they’re doing to go to a site or download an app. You need multiple measurement methods.” —Krystina Rubino

To more accurately measure the impact of your ads, adopt this framework (which, as a bonus, can be shortened to “STEM” and make you feel like a true scientist):

• Surveys: Adding a “How did you hear about us?” (HDYHAU) survey to your checkout or onboarding experience is an easy way to get first-hand customer information that can validate other attribution methods.
• Tracking: Although you shouldn’t only rely on last-touch attribution, tracking methods like discount codes, vanity URLs with UTMs, and pixel attribution (pixels can now be placed onto some audio formats) should be part of your measurement strategy. As far as attribution platforms, Krystina’s favorites include Magellan.ai and Podscribe.
• Experiments: When measuring the impact of (new or existing) channels, you need to think about incrementality—the actions that would not have happened without marketing intervention. A platform like Podscribe can help you assess incrementality as you assess channel performance.

Modeling: If (nay, when) your test goes well and you increase your investment in the channel, you may want to consider more sophisticated measurement techniques like media mix modeling.

Which KPIs should I measure?

Similar to other channels, site traffic, conversions, and customer feedback are all metrics to track. 

Keep in mind that the goal for your test is to determine if the channel shows promise, not to hit an immediate ROI target. Specifically, look for the following outcomes as signs that podcast advertising has potential to scale efficiently over time for your brand:

• 30–50% of your tests (e.g., shows, targeting groups, or placements) meet your benchmarks.
• You see an uptick in brand search or direct traffic.
• You experience an incremental lift in your brand’s important KPIs.
• You receive positive qualitative feedback and increased social mentions.

Krystina also adds that for many brands, podcast advertising often yields a higher customer lifetime value (CLTV) than digital channels, which equates to a higher allowable customer acquisition cost (CAC) for advertisers. (Learn more about the relationship between CAC and growth—and how to set your CAC targets.)

Need help getting started with podcast ads—or just want to find out if they’re right for your brand? Get in touch with us; our offline marketing experts are eager to help.