Last year, the podcast industry conquered 21% of U.S. digital radio ad revenue. But in 2021, that figure is predicted to more than double, claiming 45%, which accounts for more than $1.13 billion. And unlike radio ads, which often prompt listeners to change the station, over 78% of podcast listeners don't mind advertising because they know it supports their favorite creators.

By taking a closer look at the types of podcast ads out there, we can uncover what drives the best podcast advertising. For starters, there are two main types of podcast ads:

1. Host-read ads
2. Dynamically inserted ads

As the name suggests, host-read ads are recited by the show's host rather than a paid actor or an official spokesperson. Of the two main types of ads, this form is usually where the best podcast advertising happens. Host-read ads are uniquely powerful because they disarm the typical sales resistance you might expect from a listener being pitched a new product. The listener's familiarity with the host effectively lowers their defense mechanisms, making them a more amicable audience to market to. However, host-read ads require considerably more effort to plan and execute properly. This is where the second type comes in.

Dynamically inserted ads are recorded by the advertiser and are inserted in the beginning, middle or end of the podcast as a pre-, mid- or post-roll ad. While these advertisements don't disarm a listener's sales resistance in the way host-read ads do, they don't always have to. One of the beauties of dynamically inserted ads is their targeting capabilities. Geo-targeting a niche demographic often means that the listener has a predisposed interest in the advertised product or service. So while dynamically inserted ads run the risk of being less engaging, they manage to put up a strong fight when you consider their targeting and scaling capabilities.

Whether you elect to use host-read or dynamically inserted ads, the best podcast advertising is always ready to adapt. Keep an open mind to A/B testing so that you can optimize your ad engagement and convert those listeners into satisfied customers. Because podcast ads are relatively new, tracking their success can be tricky. To get your hands on more actionable data, try using software that's exclusively dedicated to monitoring podcast analytics. After all, sometimes all your ad needs is a little tweak to make your bank balance peak.

Read a similar article about podcast software here at this page.