How Much Does Podcast Advertising Cost?

How Much Do Podcast Ads Cost?

It’s a great time to be in podcasting! Whether you are a host or an advertiser, the channel’s explosive growth creates ever-expanding opportunities for partnerships. 

The podcast advertising industry hit $2.43 billion in the United States in 2024. This represents a year-over-year increase that shows no sign of slowing. In fact, podcast ad spending is set to grow 12% this year and reach more than $2.5 billion by 2026.

There are many reasons to invest in podcasts. The medium delivers full-funnel performance and creates strong brand affinity and trust among listeners. Below, we explain how podcast advertising works and what you can expect to pay in 2025. 

How Does Podcast Advertising Work? 

Brands that want to advertise their message to podcast audiences have several options for ad types and buying methods. Here we break down some of the basics.

Types of Podcast Ad Placements

There are three basic placement opportunities for where podcast ads are delivered within the show’s content: pre-roll, mid-roll, and post-roll.

• Pre-roll: These units are served at the beginning of the show’s content, typically within the first 30 to 60 seconds, and are generally short (10 to 20 seconds). They are often used for branding or “sponsored by” ads.
• Mid-roll: These units can run anywhere from 2 minutes into the show to 2 minutes from the end. They are a preferred ad unit, usually 60 seconds in length, with two to four units per show.
• Post-roll: These units are played at the end of the show, usually within the last 60 to 90 seconds, and are usually 10 to 30 seconds long. These units are generally less desirable, as listeners will sometimes stop listening to the show before a post-roll placement runs.

Podcast Ad Formats

For traditional podcast ad units delivered as an audio message within the show’s content, there are three principal formats: live host-read ads, pre-produced host-read ads, or pre-produced voiceover ads. These ads can be delivered as integrated ads, which are hard-coded into the episode, or via dynamic insertion. We’ll break down each format below. 

Integrated podcast ads

Sometimes called “baked-in” or “hard-coded” ads, these live within the show in perpetuity, included in every download or stream, regardless of how much time has passed since the show was released. Integrated podcast ads can include: 

• Host endorsements: These units, which feature a podcast host delivering a brand message, are a tried-and-true, classic form of podcast advertising. 
• Custom segments: Custom segments are aligned with a specific episode’s themes and woven throughout the show’s content. They may include an interview with a brand’s founder or an expert who may highlight a brand’s product or service. 
• Presenting sponsorships: For these ads, a brand signs on as a sponsor for one episode, multiple episodes, or even a whole season. Sponsorships typically include a pre-, mid-, and post-roll mention for a predefined number of episodes. 

Dynamic ad insertion (DAI)

Dynamic ads are placed into each download (you guessed it!) dynamically—aka programmatically—and, as a result, may be different for individual listeners. Dynamically inserted ads can include: 

• Pre-produced voiceover ads: These ads are recorded in advance using a voice actor to deliver the message. 
• Pre–produced host-read ads: These endorsements are read by the podcast host but not delivered live. Instead, they are pre-recorded for DAI delivery. 

These are the main audio ad formats, but the podscape is always evolving. Learn more about emerging ad types in our blog that covers all types of podcast ads (with examples!). 

How Are Podcast Ads Priced? 

Podcast ads are often priced on a CPM basis.

CPM—the cost per thousand impressions—provides a good common denominator to compare media costs across shows or networks. CPM is essentially the cost per thousand people reached. The CPM is the cost you’ll pay per 1,000 impressions or downloads. 

To calculate a CPM, use the following formula: Cost/Downloads/1000).

Average Podcast Advertising CPMs in 2025

There are several factors that influence the cost of podcast ads, but based on our experience buying across all categories and ad types, we have found the following average CPMs to be a good benchmark. 

Please note that these rates typically apply only to 30- and 60-second ad spots: 

• Pre-roll: Approximately $20 CPM
• Mid-roll: Approximately $25 CPM
• Post-roll: Approximately $1-$5 CPM

How to Estimate the Cost of a Podcast Ad

Now that you know the average CPM, let’s use an example to show how much one 60-second mid-roll integrated ad spot might cost.

• CPM: $25 CPM
• Downloads per episode (aka impressions): 100,000
• Total 60-second ad spot cost: $2,500

Note that CPM means price per 1,000 impressions. Thus, (100,000 / 1,000) = 100.  Then multiply 100 x $25 = $2,500. This does not consider gross vs. net rates.

Variables That Influence Podcast Advertising Rates

While these CPMs are average rates, podcast advertising pricing can change based on factors including podcast reach, ad length, and ad type, such as host-read ads. 

Podcast reach and popularity

Typically, the larger the listenership, the more expensive the podcast ad spots. With so many celebrities and well-known hosts joining the podcast space in recent years, CPMs on certain shows have risen considerably. Similarly, many podcast hosts who started as virtual unknowns but have now become mega-influencers have also increased their prices. With larger listenerships and premium deals at major networks, the cost of spots in these shows is higher than the average CPM. However, there are many benefits to advertising to niche audiences, which are often engaged and receptive, with lower CPMs. 

Podcast ad length

A typical mid-roll podcast ad is 60 seconds long, though we often see spots go longer than planned as the relationship between the host and brand deepens. Hosts love talking about brands and products that they genuinely use and like. Great hosts will be able to weave their ad read into the fabric of the show and seamlessly start their read in a way that makes sense for the rest of the show’s content. 

Ad length depends on the brand’s needs and goals. If a brand wants to deliver a message that explains a product but also contains an endorsement, for example, the ad will need to be longer and thus more expensive. If a brand is delivering a shorter, simpler message of 30 seconds, the CPM will be lower.                  

Host endorsed vs. voice actor

Host-endorsed ads are more expensive than pre-recorded ads delivered by a voice actor. For host-endorsed spots, the host is typically provided with an advertiser’s product and relevant copy points to include in the ad. They can then provide their listeners with their real-life personal experience with the brand or product. These ad types not only inform the listener on how and where to buy it but also give them a recommendation from someone that they trust.

On the other hand, a brand has more creative control when it develops a script and uses a voice actor to deliver the ad. These ads—which are dynamically inserted—tend to be less expensive than host-read spots. 

Is the Cost of Podcast Advertising Worth It? How to Calculate ROI

Podcast ads quantifiably deliver on campaign goals. With growing listenership, cost-effective ad options, targeted reach, and high engagement, podcast advertising is definitely worth it. 

But brands need to measure campaign performance. Here’s how to calculate ROI. 

Step 1: Set up campaign goals

The first step in both campaign planning and ROI measurement is to define campaign goals. When the goals are clearly laid out, it’s easier to determine whether the podcast ads were successful or not. 

Step 2: Measure attribution

Attribution methods might vary depending on campaign goals. At ARM, we find that incorporating multiple attribution models—from pixels to promo codes—produces the most accurate and holistic picture of results. Read all about attribution methods here. 

Step 3: Track revenue

Measure revenue changes throughout the podcast advertising campaign; this can identify any boosts produced by these ads. 

Step 4: Apply a simple ROI formula

Using the revenue you’ve tracked and your podcast ad spend, apply a simple ROI formula to get a basic picture of returns: 

ROI = (Revenue – cost of ads) / (Cost of ads) 

Step 5: Consider long-term ROI

Keep in mind that ROI isn’t as simple as a podcast campaign’s immediate financial return. Brand lift, loyalty, and recall are all important factors in a brand’s ad campaign, though they may only be gauged through consumer surveys and other measurement tactics. 

Why We Love Podcasts 

What’s your favorite podcast right now? Since half of adults listen to them, you can probably answer that question easily. Podcasts are now ubiquitous, part of popular culture, and largely free, lowering the bar for access. 

Across generations, genders, and cultures, people love podcasts. With a podcast for every interest imaginable, what’s not to love? And it’s not just listeners reaping the benefits—brands are, too. Brands see purchase intent increase by nearly two times due to podcast advertising, and cross-channel effectiveness gets boosted by as much as 40%. 

For these reasons and more, we’ve made podcasts one of our principal focuses at ARM. Our mission is to forge more intimate and powerful connections between brands, listeners, and their favorite show hosts through skilled media planning, media buying, and ad campaign execution.  

Find out how we can maximize your podcast advertising budget.