Podcast agencies would like to pause dynamic ads

Future. The podcast industry seems to be moving toward using dynamic ads, and podcast agencies are sounding the alarm. They want to preserve the intimacy of host-read ads, but the argument may already be lost as platforms find dynamic ads to be cheaper, easier, and quicker to implement… but more popular hosts may opt to put their shows behind a paywall subscription in order to avoid the dilemma.

Talk to me
While advertising is (mostly) inescapable, creative agencies say that the personalized nature of ads on podcasts are part of the format’s charm.

• Agencies say that dynamic ads — pre-recorded ads that can be inserted into various podcasts as they’re downloaded or streamed — take out the authenticity of the traditional host-read ad.
• The use of dynamic ads could also lead to platforms inserting too many ads, which could turn off audiences, lower the price of ads, and hurt an art-form that typically has a light ad load.

According to Nielsen, audiences had a 71% brand recall from ads that were host-read, and only 62% for those that were dynamically pre-recorded — probably because host-read ads are more organic and personalized to the podcast, while dynamic ads can lead to a jarring, tacked-on radio quality that makes people tune out.

Quick, easy, cheap
Despite podcast agencies’ preference for host-read ads, dynamic ads are becoming the go-to in the industry. According to the IAB 2020 Podcast Advertising Revenue Report, most podcast ads were dynamically inserted.

• They are easier to program, quicker to implement, and cheaper to purchase.
• They can bypass the lengthy process of host approval.
• They can be targeted toward specific audience cohorts or geographic regions.

iHeartMedia (one of the largest podcast networks) is fully in on dynamic ads… but with a twist. They’re pre-recorded by the hosts themselves. It may be the best of both worlds.