Simply put “Dynamically Inserted Advertising” puts audio ads 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, an approach that can work 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.
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 read ads are done correctly they would not disrupt the long-standing host read experience listeners to podcasts have become accustomed to. No listener would know we’re using ad insertion to deliver a host read or regular old 15 or 30 sec radio spot because it sounds the same as our other ads they are used to hearing.
“Given all the warnings, dynamic ad insertion is rapidly becoming the de facto way of doing business in the Podcasting space, but some media buyers are resisting the shift from baked in live host read ads.”
Reality is that there will be a flood of inventory in the space and the CPM rates will likely plummet unless we see more ad targeting in podcasting as a buffer to keep CPM’s up.
Dynamic Ad Insertion and Programmatic type ad marketplaces and buying bring risk of commodification of ad impressions in downloads.
Forward-looking podcasters will figure out what their premium content offering products will be to offset these drops in CPM or ad revenue. Podcasters need to diversify by combining audio with video and click-through ads is part of the solution, but some will be able to sell subscriptions, live performance tickets and other products that add value to their listeners.
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.