Back to Top

Tag Archives: advertising


Revenue optimization: 3 ways to get your advertising efforts right

Updated on by

Any metric outside of revenue is a vanity metric to leadership. Learn how to optimize for what drives pipeline and revenue in advertising.

Marketing departments once believed it was a sales issue if the sales team couldn’t work the leads from marketing.

Today, this is no longer the case.

Optimizing for leads or marketing qualified leads (MQLs) is great, but optimizing for what drives pipeline and revenue is better. 

Marketers exist in a new age where it’s no longer satisfactory only to drive leads alone.

With the available technology and data today, we can do much more than identify hand-raisers to help companies spend their marketing dollars more efficiently and drive revenue.

Just because a channel generates leads doesn’t mean those leads bring value later in your sales funnel. 

When you understand where customers are bringing in revenue vs. where they may need more nurturing before converting, you can create a more holistic media strategy to generate qualified leads that will churn out more income than lead volume alone.

Below are three must-haves for revenue optimization.

1. Tight-knit tracking 

Tracking is essential for reasons that go well beyond reporting.

In this new age of artificial intelligence, it’s vital to feed machine learning the data that will make it do what you desire.

Platforms like Google optimize the data you provide, making it a powerful tool or your worst nightmare. 

Accurately tracking your efforts plays a significant role in your advertising strategy’s success.

Integrating third-party data sources, like Snowflake and Salesforce, with your paid media reporting helps decrease the optimization time against a deeper funnel event, such as MQL, sales accepted lead (SAL) and revenue.

Nonetheless, offline conversion tracking in Google is great for seeing what campaigns drive down-funnel metrics like SALs and closed/won leads. If you’re attributing revenue to these conversions, that’s even better.

If your B2B advertising team is doing lead generation in Google without visibility into where they are going down funnel with offline conversion tracking, they are doing it wrong.

. Understand the customer base 

Marketers should know how users from different channels perform once they are in your sales funnel.

For example, if your average Google search lead value is 4x higher than a lead out of Facebook, how can you use that to prioritize your spending and channel goals?

Understanding your average time to close or how long it takes the lead to turn into revenue will help you only to further optimize toward revenue.

With that said, marketers should avoid reactivity with a down day or week if it can take up to a couple of months for a user to move through the sales funnel.

For example, if it takes two months for a lead to close, you need to give a new campaign or channel at least that long before making abrupt cuts if you aren’t seeing initial revenue. 

Seasonality is also a critical factor to consider. Understand and prioritize the best time of year to capture your high-value users.

Create a plan to warm up those audiences earlier in the year and then nurture them post-initial conversion to move them along the sales funnel.

Targeting the right audience also helps you assign pipeline value to optimize revenue. Having an ideal customer profile (ICP) in mind for your targeting is an underrated piece of the puzzle.

Knowing what kind of people will be buying your product is paramount to getting your advertising efforts right. 

For B2B, you should know their job titles, pain points, tasks and anything that will indicate if your product would make their lives easier. You should also be aware of your sales team’s lead disqualification criteria. 

Will your sales team throw out leads from businesses that don’t meet a revenue threshold?

If so, don’t waste your marketing dollars on those disqualified leads when you can target revenue on other strong advertising channels.

3. Understand the lifetime value of customers 

Teams optimizing for revenue should understand the value of their customers through customer lifetime value.

How can you optimize for revenue if you don’t know who your most valuable customers are? 

Understanding the lifetime value (LTV) of your customer base and your customer acquisition cost (CAC) allows you to perform an LTV:CAC ratio analysis to get the complete picture of how your channel mix is affecting your advertising efforts. 

Say Google is driving significant lead volume but at a .5 LTV:CAC. It might be time to dig a little deeper into Google to see how you can improve Google’s revenue-generating efficiency.

Generally, you’d like to see at least a 3:1 LTV:CAC when measuring this. 

If you are having trouble calculating the LTV of your customers, Hubspot has a great article that can help you with this initial step.

The takeaway

CMOs are asked to demonstrate the value of every dollar put into marketing.

Leads are quickly becoming a metric of a bygone age where marketers could simply pat themselves on the back for a well-done job. 

Today, any metric outside of revenue is a vanity metric to senior and executive leadership outside of marketing, making every dollar to customer acquisition and improving the bottom line. 

Give the platforms the data they need to find the highest-value customers.

By doing so, you’ll empower the optimization of every effort for the success and growth of your organization, giving your CMO a few extra hours of sleep at night.

If you are interested in original article by Madalyn McConnel you can find it here

Posted in Blog | Tagged , , | Leave a reply

Google Tests New Local Service Ads UX

Updated on by

Google is testing a new layout and user experience for the Local Service Ads. This interface has the local service ads on the left and when you click on one, the box expands to the right with all of the details on the business.

This was spotted by Ben Fisher who posted on Twitter saying he is “seeing LSA in a different layout today” and he said that this looks more like a local finder interface. Adding that he believes this new interface will give more exposure to Local Service Ads below the top three positions.

Here is his screenshot:

click for full size

I like this user interface in general, it just looks so slick. Oh, keep in mind, I am not sleeping much at all this and next week.

If you are interested in original article by Barry Schwartz you can find it here


How to Know if Your Facebook Ads Will Work

Updated on by

Wondering how to run successful Facebook ad campaigns every time? Looking for a process that relies on data rather than a best guess? 

In this article, you’ll learn which metrics to consider to make smart decisions for Facebook ad campaigns that work.

The Business Case for Facebook Ads

For some marketers, Facebook ads have lost their shiny new appeal over the past few years. Facebook advertising costs have risen and businesses have had to compete harder for ad placements. 

But, that’s not the whole story.

Facebook is still the biggest social media platform out there, by miles. It claims almost 3 billion monthly active users. That’s more than Instagram and TikTok put together. It’s more than any other social network. 

Facebook also offers a specific demographic to marketers. While younger generations are focused on the new generation of video-first apps, Facebook’s audience skews a little older. That means that the people viewing your ads on Facebook have a lot more disposable income to spend. 

This isn’t to say that you should go all in on Facebook and ignore every other ad platform. Diversification is still a great strategy. If you want to get the most return for your money, you’ll spread your budget across other platforms such as Google Ads, YouTube, and TikTok. 

However, Facebook remains an essential part of that diversified strategy. If you skip over Facebook advertising, you’re leaving money on the table. 

In the next few sections, we’ll look at how to get the best results from your Facebook ad campaign, building a strong foundation for your broader ad strategy. 

#1: 4 Common Facebook Ads Budget Mistakes

As we’ve seen, Facebook Ads is an immensely powerful platform for social marketers. But some very common mistakes can prevent you from getting the results you want. 

Before we dive into planning and monitoring your budget, here are some errors to avoid.

You Don’t Test Facebook Ads Enough

To run successful ads, you need to know what works. To know what works, you have to test… and you have to test enough.

Lots of first-time marketers on Facebook make the mistake of not investing enough in testing. You don’t have to spend the entire budget on testing different audiences, placements, and creative but you do have to test enough to get meaningful results.

That also means being smart about how you spend your testing budget. For example, if you only have $100, don’t test 100 different ads. Test just four ads, and you’ll get statistically significant, useful results.

Once you have some solid data from that first testing round, you can start scaling up. Spend the majority of your budget on tactics you know are successful but always have some money set aside to keep testing. 

You Don’t Dig Into Facebook Ads Metrics

You need to get really comfortable with Facebook’s Insights and Analytics. At a high level, that data will tell you how your Facebook ads are performing compared to other platforms.

At a more zoomed-in level, tracking your Facebook metrics will help you keep your ads effective over time. Even if you test a strategy to perfection, the same formula for success may not work 6 months down the line. 

You Don’t Utilize Off-Facebook Tracking Mechanisms

Facebook’s own metrics are valuable but they’re not the whole picture. You’ll also need:

  • The Facebook pixel to track activity on your website and match it to your Facebook presence.
  • The Facebook Conversions API to track conversions on your website that get missed by the pixel.
  • UTMs so you can use Google Analytics to check and corroborate which links people click on from Facebook.

These analytics are all a bit more technically complicated than Facebook’s built-in metrics. But they are well worth the extra effort because they give you so much more data. 

For example, your metrics within Facebook might show that two ads are equally successful in terms of clicks and conversions. But when you dig into the Conversions API data, you might find that one ad actually leads to a much higher order value than the other. Conclusion: you only want to keep one of those ads running. 

You Don’t Use a Facebook Ads Budget

Finally, the biggest single mistake you can make with an ads budget is… Not having a budget!

Right from the start, you need to set boundaries for your spending. That might include setting some money aside for testing—but there should always be a limit. Otherwise, you risk spending money randomly without knowing how much you’ve spent or where it’s going. 

This brings us to the next point. How exactly do you calculate a budget for Facebook Ads?

#2: How to Calculate a Facebook Ads Budget

How much should you spend on Facebook Ads?

It depends on your business, your cash flow, your current return on ad spend, and how much you need to be profitable. 

We can do some basic calculations to get you started. You’ll need to know:

  • The cost of the product or service you’re advertising
  • The cost of each lead you get through Facebook Ads (If you don’t know this yet, get testing!)
  • The current conversion rate for those leads
  • How much you need to sell to be profitable

Let’s say that you’re selling a course that costs $1,000 and you want to make $20,000 profit. Your ads guide people to a free webinar and about 3% of the people in the webinar will go on to buy the course. That’s 30 people out of every 1,000. 

To make 30 sales, you need to get 1,000 leads at $10 each. That means you’ll be spending $10,000 on ads, to make $30,000 in sales, with a net result of $20,000. But if your cost per lead rises above $10, you’ll start falling below that $20,000 threshold for profitability.

If you have a lower-value product or service, then your cost per lead will have to be lower. For example, with a product that’s worth $100, the same conversion rate, and a lead cost of $10, you’d be losing money because your margins are much smaller. You’d be spending $10,000 to make just $3,000 in sales. 

The figures you’re working with will change over time and they’ll be different for every product, service, and ad campaign you run. So the easiest way to juggle these figures is with a spreadsheet. Use it to track your product costs, lead cost, conversion rate, and targets for leads and sales.

Here’s another example: let’s say you create a spreadsheet for your latest product. You know that your current lead cost is around $5, and you want to get 1,000 leads with your first ad campaign. That means you’ll be spending $5,000.

You can use the spreadsheet to check how many of those thousand leads will convert to a sale, then multiply it by the value of your product to figure out whether you’ll make a profit over your ad spend. 

When the Numbers Don’t Add Up

If you’re struggling to make a profit on your Facebook ads, then your lead cost is probably too high compared to your conversion rate and product value. It’s time to get testing and find ways to bring that number down.

You could try…

  • Offering a different lead magnet that attracts more people
  • Showing your ads to a different audience (Maybe you haven’t found the right audience yet or your current audience is showing signs of ad fatigue.)
  • Tweaking your lead magnet so it converts a higher percentage of people
  • Upselling customers so the average order value is higher and you can absorb a higher lead cost

In the past, some people have argued that it’s harder to sell high-value products on Facebook. But that’s certainly not the case now. As ad costs and competition have risen, you really need the higher-value products to make your budget work.

It’s hard to make a profit on Facebook Ads with an average order value of less than $100. So your options are to sell high-value products or to get really good at upselling and cross-selling for lower-value products.

This is where metrics like the Facebook pixel and Conversions API become important, so you can track customer lifetime value, instead of just measuring your ads based on a single conversion. 

When the Numbers Look Good

If your Facebook ads are making a profit, keep them running!

But don’t keep running exactly the same ads forever. A good return on ad spend means more power to test. So when something works well, keep testing new variations on it. Try lookalike audiences, similar ad creative, or new lead magnets. 

Try to set aside about 10% of your ad budget for continuous testing so that you can keep scaling up when things go well. The more success you have, the more you’ll be able to test, creating a positive feedback loop.

#3: How to Monitor Your Facebook Ads Performance

When you’re just starting out with Facebook Ads, the amount of data can be overwhelming. With choices such as Facebook’s own metrics, additions like the pixel and the Conversions API, and external analytics such as UTMs, where should you start?

Well, here’s the good news: you don’t need to read every last data point. At least, not to begin with. Here are the key data sources and headline numbers you need to focus on for now.

Tracking at Different Levels

You can monitor your Facebook ads at different scales. It’s worth taking a second to look at these because each level will give you different information you can use in different ways.

  • Campaign level. This gives you data about your campaign as a whole. Use it to check whether your ads are profitable at the highest level, then dig deeper into the numbers to improve or test further.
  • Ad set level. Here, you can look at the performance of ads for specific audiences and ad placements. For example, you can view your Facebook and Instagram ad placements separately to see what works on the different platforms within the Facebook Ads network. You can also separate out leads from different countries to see how people respond to ads in different places.
  • Ad level. This is where you test the really fine details: different images, ad copy, lead magnets, or link text.
  • External data. Don’t forget to add the data from your website and UTMs so you can see the order value and customer lifetime value for different ads. This can make a huge difference to understanding your budget. For example, lead generation ads often have a lower cost per lead on Facebook but a lower order value than direct sales ads.  

Facebook Ads Link Click-Through Rate (CTR)

This internal Facebook metric tells you how many people actually tap through from your ads to view an offer or product. You need a CTR of at least 1%, and ideally higher.

To dig into these figures, go to your Facebook ads manager and search through the drop-down menus in your ads reporting to find Performance and Clicks. With this reporting, you can compare the CTR for different ad variations. 

If one ad is outperforming the others, ask yourself what’s different. Is the offer better? Is the creative better? What happens if you test different combinations of offer and creative?

Facebook Ads Cost per Lead (CPL)

Depending on your ad campaign objective and how you set up your Facebook pixel, this might show up as cost per sale or cost per complete registration. Knowing the cost per lead or sale is essential to calculating a profitable Facebook ads budget.

As a general rule, if an ad is profitable, keep it running. You can use some of your budget to test improvements and try to get the CPL even lower, but in the meantime, keep that profitable ad running.

If an ad has a CPL that’s too high, then you can dig deeper into the numbers. Look at the audience size, the ad frequency, and the cost per thousand impressions (CPM). It could be just one of those factors that’s throwing off the whole campaign.

Don’t rush to cancel ads the second they dip below profitability. Instead, give them a couple of days to settle. If they’re still not performing, then pull them and start testing something different.

#4: How Reliable Is Facebook Ads Data?

In this guide to calculating your Facebook ads budget, we’ve focused a lot on data, especially data that comes from Facebook. But how accurate are those numbers?

As every marketer knows, tracking has changed in the past couple of years. Facebook now has access to a little less data about its users and visitors to your website than before. Tracking conversions has become much harder.

Around the same time, Facebook introduced some predictive analysis to its metrics. That means the algorithm tries to forecast your results. These forecasts can be very illuminating but they’re not the same thing as hard, evidential data.

The result? Well, there was a dip in Facebook’s data accuracy. But the latest figures seem to suggest that accuracy is improving once again. And the big social network still has more people, data, and reach than pretty much any company on the planet.

Throughout this piece, we haven’t recommended relying solely on Facebook’s figures. Your best

bet is to use Facebook, Google Analytics, and your own customer data to triangulate your metrics.

By combining all three data sources, you’ll get a very reliable picture of how your paid advertising is performing. And by testing, testing, and testing again, your accuracy will keep improving over time. 

If you are interested in original article by Michael Stelzner you can find it here


Paid Social Media: A Guide To Social Advertising Success

Updated on by

Understand your audience personas and craft a social advertising campaign on any platform with this essential guide.

Getting started with a paid social media strategy can be daunting and time-consuming.

As a social media advertising agency leader (say that three times fast), we often get clients asking if we can fix their existing campaigns to improve return on investment.

The problem?

They haven’t taken a step back to focus on an overall strategy.

They jumped into social advertising with an audience they thought was right, a platform they thought was right, and creative that they thought fit both this maybe-audience and maybe-platform.

Gathering data before creating ads is just as important as setting up and perfecting the ads themselves.

There are two primary data sets I recommend gathering to create an overall strategy:

  • Understand the landscape of social media advertising.
  • Understand your audience and how they relate to each social platform.

Once you understand the social media landscape and identify your ideal audience, you can create a social ads strategy with realistic goals that complement your SEO and other digital marketing efforts.

First: Understand The Landscape Of Social Advertising

Your target audience will not necessarily fall perfectly in line with the number of total social users. Still, some social networks have so many more active users that it may help sway you to include them in your strategy.

For example, if you know your target audience is on TikTok, start there.

Then, when it’s time to expand and test, you may want to consider Facebook because of the sheer number of users (and maybe you’ll learn something about a “new” target audience, after all).

Below is an insightful chart from Search Engine Journal that lists the top 10 social advertising platforms and their monthly active users worldwide:

Top 10 Social Media Apps

And here is another helpful chart from Accion Opportunity Fund that breaks down a few of the basics of the top social networks we’re seeing today.

Next: How To Get Started Crafting A Social Advertising Campaign

As discussed above, when getting ready to start social advertising, you don’t necessarily just want to choose Facebook, for example, because it has the most users.

On that same note, you don’t just want to assume your audience isn’t on Facebook because you think your target audience is younger.

The good news for advertisers is that each platform provides detailed audience insights that you can use to match your ideal audience without spending much money blindly testing. (More on this later.)

There are three major points, each with subsections, that matter when it comes to a paid strategy.

Audience Personas: Establishing Your Audience Demographics, Interests, And Behaviors

Audience personas give you an understanding of your ideal audience, including demographics, interests, and behaviors.

This step is always the first step for us, and there are a few different ways we gather this data:

Dig Into The Analytics

Google Analytics, to be exact.

The Audience section within Google Analytics is a great starting point since it has valuable insights that can guide your social advertising strategy.

It will show you who is currently interacting with your website, but more importantly, who is contributing to the conversions/transactions.

This data includes age, gender, location, and more.

For example, if you see that the age group of 18–24 is converting at a higher rate than 45–54, you may want to optimize your campaign for the younger age group.

Go To Where You Think Your Audience Is, And Interact

Believe it or not, some of our clients come to us with an idea for a social advertising campaign, but they aren’t actively engaging with their audience on that social network!

For example, with the rise of TikTok, it can take a while to build a presence.

So we always recommend building up your social media account first and getting out there to see what people are talking about – you may be surprised at what you learn.

Research Your Competitors

Observe where your competitors are active on social media and how they market their products or services.

This is an easy way to ensure you aren’t missing any opportunities and is usually a good starting point when beginning to craft a social advertising strategy.

You can learn more about how to research your competitors here.

Audience Segments: Understanding Where In The Customer Journey They Are (Awareness, Consideration, Conversion, Etc.)

Next, it’s essential to realize that while you may have one audience in terms of demographics, that audience can (and should) be further segmented down into where they are in the journey.

We usually segment an audience three times:

  • Those who have never heard of your brand.
  • Those who have engaged with your brand in the past, but only with blog posts or educational resources (which means they’re still learning).
  • Those who are ready to buy, which is often shown by having items in a cart or having spoken to someone at your organization on the phone and expressed interest in buying.

While these three segments are general, you can think about your business specifically to come up with more defined segments that you may want to target, often called “audience personas.”

This is a big topic, so you can learn more about creating audience personas here.

Audience segmentation usually coincides with prospecting, retargeting, and remarketing campaigns (more resources on different campaign types later).

Audience Personalization: Developing Content And Messaging Specific To The Audience At The Proper Time In Their Journey

In short, there should be different content and messaging for someone who hasn’t heard of the company versus someone who has previously engaged with it.

Once you’ve defined your segments, it’s time to start personalizing content, and the type of content you write depends on the platform.

The next steps include:

  • Match your audience with two or three platforms, and then expect to produce different ad creative based on your audience personas. By this point in your journey, you should have already analyzed the landscape of the social media options and researched where your audience is!
  • Advertise on each of these platforms to see what works. You may only want to focus on one social platform, but we recommend at least two, as they can complement each other well. Also, since each platform has unique ad formats, we suggest creating ads specific to each channel while keeping the same look and feel for consistency.
  • Refine your ads. Once again, this is a big topic. Tweaking your audience segmentations, your content, the time of day you post that content, etc., is an optimization skill all of its own. Keep in mind that you don’t want to make too many big changes without collecting enough data.
  • Expand your strategy. Don’t be afraid to try other networks as you grow and refine your ads. You’ll start to see what’s working and what isn’t – and while this won’t be identical on every social network, you will start to get a baseline for where to begin your tests. This will help you save money and time in the long run as you expand.

Lastly: Setting Up Ad Campaigns

Lastly: Setting Up Ad Campaigns

While this article focuses on the strategy for social advertising, being able to set up your ads successfully isn’t always as cut-and-dry as it should be because there are so many different campaign types.

Pro Tip: When setting up the campaigns, I recommend starting with three campaigns (prospecting, remarketing, and retargeting) to ensure you engage with your audience at the right time along their journey.

Below is an example to help get you started:

Prospecting (Awareness)

  • Audience segment: Those who have never heard of your brand.
  • Campaign objective: Reach, awareness.
  • Messaging: Focus on the user. What problem are you trying to solve?
  • Content types: Educational articles, industry news, research stories.

Retargeting (Consideration)

  • Audience segment: Those who have engaged with your brand in the past, but only with your website, social media, or educational resource.
  • Campaign objective: Engagement, clicks.
  • Messaging: Focus on the benefits of using a product or service to solve the problem.
  • Content types: Ebooks, whitepapers, company events.

Remarketing (Decision)

  • Audience segment: Those who are ready to buy, which is often shown by having items in a cart or having spoken to someone at your organization.
  • Campaign objective: Conversions, purchases.
  • Messaging: Focus on why they should choose your solution to solve their problem versus your competitors.
  • Content types: Testimonials, reviews, case studies.

For step-by-step instructions for each individual social network, see the resources below:

Final Thoughts

Ultimately, creating an effective paid social media strategy will take time, and you will consistently be reiterating, revising, and optimizing.

As with anything, a successful business is about testing, but researching before jumping into paid media – and then using paid media as another part of your testing – is crucial for a successful overall strategy that complements your SEO and other digital marketing efforts.

Always define your goals, consider the engagement you want and expect, and then use the steps above to make it happen!

If you are interested in original article by Jason J Zotara you can find it here


Podcasters Are Buying Millions of Listeners, Raising Questions About Marketing Tactics

Updated on by

Podcasters are always hunting for new, flashy places to promote their shows, ranging from billboards to floats in parades to airplane banners. Some networks, though, have uncovered a less-glamorous, yet highly effective way to gain millions of bankable listeners: loading up mobile games with a particular kind of ad.

Each time a player taps on one of these fleeting in-game ads—and wins some virtual loot for doing so—a podcast episode begins downloading on their device. The podcast company, in turn, can claim the gamer as a new listener to its program and add another coveted download to its overall tally.

The practice allows networks to amass downloads quickly by tapping into a wellspring of hyperactive video-game users. But it also calls into question who a legitimate podcast listener is and what length of time should be required to count as a download.

“Not all impressions are created equal,” said Larry Chiagouris, a marketing professor at Pace University. “I’m not saying [this tactic is] not ethical or illegal, but it raises issues. If someone is trying to play a game and that’s the purpose of this interaction, they may just be eager to play the game and are not that interested in the information being shared.”

Podcasts typically rely on downloads as the primary metric for ad sales. When an individual taps on an in-app play button on their mobile device, an entire episode begins downloading so they can listen to it even in the absence of a good internet connection—say, on an airplane or in the subway. An episode’s ads are inserted at that moment of download, meaning that even if a consumer only listens to 10 minutes of a 30-minute show, the mid-roll ad at the 15-minute mark is often ready to be heard—not to mention, counted by the sales team.

To date, the podcast industry has said next to nothing about its embrace of this video-game strategy. In August, DeepSee, an ad fraud detection company, published a research paper revealing how the practice harnesses gamers’ attention.

“No one really asked questions about this, or what the experience is like for users,” said Rocky Moss, DeepSee’s co-founder and chief executive officer.

One game referenced in DeepSee’s paper is Subway Surfers, a popular mobile app from the Danish company Sybo, which has been downloaded some 3 billion times since its debut in 2012. Over a period of two weeks in August, Bloomberg found multiple publishers using the game to rack up podcast downloads, including the New York Post, independent podcaster Scott Savlov and IHeartMedia Inc.

Representatives for the Post and IHeart declined to comment.

Savlov says he spends “nominal” money on in-game ads and initially used them to drum up interest in his show when it first launched. These days, he says, he looks more to social platform algorithms to promote his celebrity interviews.

“Don’t rely on [in-game ads] exclusively because at some point you’re going to want as much organic and authentic growth as you can get,” he said.

The podcast networks that are actively mining downloads in the mobile game space are doing so through an intermediary company, called Jun Group, which was founded in 2005 and sold to Advantage Solutions Inc., a marketing and sales company, in 2018. Corey Weiner, CEO at Jun Group, said the company specializes in making consumers aware of products, websites and podcasts by placing its ads in over 1,000 mobile apps that collectively reach 100 million unique users.

“There is a very big reason why all the largest brands in the world invest so much money in brand awareness, because without it you have no chance of breaking through the clutter,” he said. “Every publisher, every content creator, has invested in marketing to promote themselves since the dawn of time, and this is just another way of doing it.”

He said the company hasn’t specifically tracked how long gamers will stay on a podcast after clicking on an ad.

“I think that the standards bodies, the people who are involved in deciding what a play of a podcast is, could decide to raise the bar on what constitutes as a play of a podcast,” Weiner said. “Even if you raise the bar, [the ad] is still going to exceed the bar. So, in fact, I actually suggest let’s raise the bar because we can hop right over it.”

According to someone who’s spoken with Jun Group, the price the company charges podcast networks for these ads can vary depending on whether they’re targeted to particular demographics or guaranteed to attract unique listeners. The starting rate for a 20-second ad is $27 per 1,000 website page views. To monetize such downloads, podcast networks can turn around and sell the resulting audience to brand advertisers, presumably at a nice markup over what they pay to Jun Group.

Jun Group’s main podcast client is IHeart, the maker of shows from Will Ferrell, Charlamagne tha God and Shonda Rhimes. According to a person familiar with the effort, the radio company, which bills itself as the top podcast publisher globally, has shelled out more than $10 million and gained approximately 6 million unique listeners per month through these ads since 2018. The company primarily runs its in-game campaigns at the beginnings and ends of months. The impact can be seen on the publicly available charts produced by Chartable, a podcast marketing company owned by Spotify Technology SA.

During the last week of August, IHeart podcasts represented more than half of the top 10 trending shows—even though one of the listed podcasts hadn’t published new episodes in months and another hadn’t published any new programming in over a year. Several of the specific shows that Bloomberg encountered in Subway Surfers appeared lower in the charts, as well, including “Life in Spanglish,” “Run That Prank” and “All the Smoke.”

(Disclosure: IHeart is a partner of Bloomberg Media, and DeepSee discovered promotions for one Bloomberg podcast running in Subway Surfers).

IHeart also maintains the top position on Podtrac, a monthly podcast ranker that measures networks’ unique audience and downloads. For the month of August, it reached approximately 35.5 million unique listeners, 11 million above its closest competitor, Inc.’s Wondery. The company first arrived at the top of that list in August 2020, with 24.6 million unique listeners compared with National Public Radio’s 24 million.

The incentives to invest in marketing channels like Jun Group’s are clear. The audio industry has been marked by a frenzy of investments. To make back the money as fast as possible, companies will be relying, in part, on growing the reach of their podcasts in order to bring in more advertising revenue. The industry is expected to surpass $4 billion in revenue in 2024, up from around $700 million in 2019.

If you are interested in original article by Ashley Carman you can find it here