Conversion Rate by Podcast Player. To Include or Not to Include.
In the evolving landscape of podcast advertising, dynamic ad insertion (DAI) technology and its performance continue to improve. While it still has a long way to go, these advancements prompt us to reconsider not just whom we target, but who we don’t.
By analyzing advertising performance data over the last 30 days, this article explores the question: Can focusing our ad buys on specific listening platforms, and deliberately excluding others, contribute to more efficient ad campaigns?
*CVRs in this analysis are not benchmarks*
*CVRs in this analysis are not benchmarks*
The Strategic Lens of Exclusion
When it comes to DAI or impression-based buys, traditionally “targeting” is the sole focus: “How can we ensure our ads are reaching our target customers wherever they are?”
However, the improvements in DAI introduce the opportunity for a new nuanced approach to increasing efficiency: the power of exclusions.
Exclusions, the inverse of targeting or inclusions, entails deliberately omitting certain demographics, platforms, apps, or environments from a buy to concentrate efforts where they yield the highest returns.
So what does performance look like across these listening sources?
Do they all perform the same?
(see methodology below for more details)
TLDR; No.
Some sources definitely outperform others. For example, podcast apps take the lead with an average CVR of 0.111% across all ad-exposed impressions and conversions. Specifically, outperforming web players and devices which show average conversion rates of 0.040% and 0.024%.
But let’s break out how each, on aggregate, performs compared to the other.
Defining Podcast Listening Sources
Podcast App: Dedicated applications designed specifically for downloading, streaming, and managing podcast content.
Apple Podcasts, Spotify, Pocket Casts, Overcast, Castbox, etc.
Web Player: A web-based platform or application that allows users to listen to podcasts directly from a browser without the need for downloading a dedicated app.
Google Chrome, Safari, Firefox, and iOS WebView.
Device: Hardware devices that can play podcasts, often supporting streaming or voice commands, but not primarily designed for podcast consumption.
Alexa-enabled devices (like Amazon Echo), Google Home, smart TVs, and streaming devices like Roku or Chromecast
Dissecting Performance Across Platforms
Podscribe analyzed performance data across 50+ Direct Response brands over the last 30 days. Specifically, we looked at how certain podcast listening sources drive site visits and conversions at what rates. Let's break down the performance across each category to understand the dynamics at play.
Podcast Apps: Leading the Conversion Front
In our analysis, Podcast apps emerge as the top performers, with a notable 287,165 conversions from 208,054,918 impressions and a 5.76% visitor rate.
Ad exposures on podcast apps netted out a 0.138% conversion rate (CVR) underscoring their effectiveness in fostering a highly engaged audience that is more likely to take action.
This data suggests that listeners on podcast apps are perhaps the most engaged segment of a podcast audience compared to its device and web player counterparts.
A listener’s choice to use a dedicated app/platform signals a deeper commitment to the podcast experience, potentially making them more receptive to ads or more engaged followers of that show.
The high conversion rate among podcast apps might not just be a function of listener loyalty but also of the immersive, focused environment these platforms provide, which is conducive to absorbing and acting on advertising messages.
Web Players: A Gateway to Casual Listeners
Conversely, ad exposures through web players show a conversion rate of 0.034%.
Web players, offering accessibility through browsers like Google Chrome and Safari, recorded 15,872 conversions from 44,901,709 impressions, alongside a 2.65% visitor rate.
The CVR of 0.034% reflects their role in introducing podcasts to a broader audience, and are potentially used for a more casual or one-off listening experience. The data suggests that web players cater to listeners who may not be avid followers of a certain podcast but may be drawn to specific episodes based on recommendations or social media mentions.
While web players serve as an essential gateway for introducing podcasts to a relatively broad audience, the engagement here is more fleeting, impacting the effectiveness of ads. Consequently, the likelihood of converting from ads heard in this context may be lower. Repeated exposure to an ad(s)—and, by extension, the brand—is typically required before a listener decides to convert which on these platforms may not be the typical listening behavior.
Devices: A Passive Listening Challenge
Devices, including smart speakers and streaming IOTs such as Alexa or Roku, show the lowest conversion and visitor rates among the categories, with 6,397 total conversions from 26,459,345 impressions and a visitor rate of 1.26%.
Their CVR of 0.024% highlights the passive listening experience they facilitate—ideal for background listening or multitasking— which may inherently dilute the impact of ads.
The lower conversion rate here underscores the challenge of capturing the attention of an audience that may not be actively listening or in a position to take action after hearing an ad.
An Interesting Thought Experiment: With the unique challenges presented by device-based listening, what innovative approaches can advertisers take to engage an audience that may not be actively listening?
Posing the Question: To Exclude or Not to Exclude?
This analysis prompts a critical question: if certain platforms outperform others, should exclusions become as integral to ad strategy as targeting?
While we can’t answer that question for you, it is worth taking into consideration.
Specifically when reflecting on how media buyers strategize and optimize other platforms like Facebook or Google. For those channels, exclusions are an integral if not essential part of the media buying process and optimizations.
Yet, despite exclusion being supported in existing podcast ad servers, they are rarely considered. As podcast advertising grows, we should increasingly look to take a more nuanced, data-informed approach to targeting, especially when improved performance is on the line.
TLDR; In our opinion, it’s worth the test.
The feasibility of such tests, however, hinges on whether you have access to real-time attribution data or not.
The Role of Pixel-Based Attribution
Here lies the crux of executing sophisticated, data-driven optimizations: The indispensable role pixel-based attribution plays.
This analysis underscores the complexity of podcast ad performance and the potential of not just strategic inclusions (targeting) but exclusions.
Real-time, granular data on how ads perform across different platforms, demographics, and listener behaviors can illuminate the path to improved performance. Leveraging a pixel-based attribution provider, be it Podscribe, SPA, Claritas, or others, enables advertisers to discern not just the quantity of impressions but the quality of engagements. All of which should be used to strategically guide the decision: to include or not include.
Conclusion:
While this exploration offers insights and suggests possibilities, the true potential for optimization lies in continuous learning and adaptation, fueled by robust, real-time data. As we ponder the strategic implications of focusing on high-performing platforms or employing strategic exclusions, it becomes evident that the journey towards optimized podcast advertising is both complex and compelling.
Engaging with a pixel-based attribution provider not only offers the keys to this data-rich kingdom but also opens up a world of possibilities for advertisers aiming to navigate the nuanced pathways improving performance requires.
Beyond Conversions: Other Things to Consider
Visitor Rates: The Top-of-Funnel Metric
Visitor rate, an essential top-of-funnel metric, offers insights into ad effectiveness beyond conversions. For instance, a platform with a high visitor rate but lower conversion rate can still be valuable in raising brand awareness or sparking initial interest. This discrepancy invites advertisers to consider how different platforms contribute to the customer journey, emphasizing the need for tailored strategies that resonate with the unique listener base of each platform.
Podcast Apps
Spotify leads with an 8.0% visitor rate, showcasing its effectiveness in driving web visits, followed closely by Google Podcasts and Apple Podcasts at 7.3% and 6.0%, indicating their strong listener engagement. Apps like Podcast Addict and Podbean show moderate engagement levels, while Pandora and AndroidDownloadManager lag behind, suggesting they're less effective in prompting web visits.
Web Players
Safari tops web player engagement with a 3.77% visitor rate, suggesting higher ad follow-through, with iOS WebView and Chrome also showing notable engagement at 3.06% and 2.33%, respectively. Firefox, at 1.86%, indicates a potentially less ad-responsive audience.
Devices
Chromecast (1.9974%) and Alexa-enabled devices (1.7051%) show some potential in driving web traffic, albeit lower than apps and web players, with Sonos and Roku trailing, reflecting the challenge of engaging users on these platforms for web actions.
Methodology
Conversion Rate by Listening Source: The sum of the total conversions(on a specific source) divided by the sum of the total ad exposed impressions(on a specific source) multiplied by 100 in last 30 days.
Impressions: advertiser exposed impressions from prefix and campaign pixel data.
Conversions: events where “conversions” were classified as a purchase.
Listening Player: The specific platform or device used for listening.
Category: The category of the player, such as Web Player, Device, or Podcast App.
Average conversion rate by Listening Source: the average conversion rate across each specific listening source