Average CPM (cost per thousand) rates on Libsyn’s AdvertiseCast marketplace have continued to fall for the third month in a row, the company has reported.
The average CPM rate for a 60-second ad spot on the company’s marketplace - which hosts over 2,900 shows including more than 200 exclusive podcasts - was $22.04 in February, representing a drop of more than 10% from its previous peak in November last year. This is down by around 1% from the previous month, which was itself down 5.5% from December.
The company attributed the decline to a combination of reasons, including its recent partnerships with a series of popular, established podcasts, and general market conditions.
“Although the podcast ad market remains resilient, we are seeing a couple factors pushing rates down for us,” said Dave Hanley, chief revenue officer for AdvertiseCast. “Given the market uncertainty, we are working aggressively with our agency and brand partners to offer them great value. In addition, our network has gone up market representing several larger podcasts, this carries natural rate compression, and those large audiences carry more weight in our calculations.”
There were brighter spots within several categories, however, including technology, which rose from second place in January to become the most valuable category at a CPM of $27, followed by education, and kids and family, both with a $25 average CPM.
Hanley also noted that there were opportunities to increase the number of ads being delivered programmatically, and said that more advertisers were expressing interest in the technology.
“Programmatic accounts for just 2% of total podcast ad revenues,” he said. “While this is still nascent, in the last six months, AdvertiseCast is experiencing growing adoption of our Libsyn Auto Ads solution as more brands and agencies seek to buy podcast advertising programmatically like they purchase other digital ads.”
Rival platform Acast has also been investing heavily into programmatic advertising, and according to the company’s year-end results, programmatic ads now account for 13% of the platform’s overall revenue.
Average CPM (cost per thousand) rates on Libsyn’s AdvertiseCast marketplace have continued to fall for the third month in a row, the company has reported.
The average CPM rate for a 60-second ad spot on the company’s marketplace - which hosts over 2,900 shows including more than 200 exclusive podcasts - was $22.04 in February, representing a drop of more than 10% from its previous peak in November last year. This is down by around 1% from the previous month, which was itself down 5.5% from December.
The company attributed the decline to a combination of reasons, including its recent partnerships with a series of popular, established podcasts, and general market conditions.
“Although the podcast ad market remains resilient, we are seeing a couple factors pushing rates down for us,” said Dave Hanley, chief revenue officer for AdvertiseCast. “Given the market uncertainty, we are working aggressively with our agency and brand partners to offer them great value. In addition, our network has gone up market representing several larger podcasts, this carries natural rate compression, and those large audiences carry more weight in our calculations.”
There were brighter spots within several categories, however, including technology, which rose from second place in January to become the most valuable category at a CPM of $27, followed by education, and kids and family, both with a $25 average CPM.
Hanley also noted that there were opportunities to increase the number of ads being delivered programmatically, and said that more advertisers were expressing interest in the technology.
“Programmatic accounts for just 2% of total podcast ad revenues,” he said. “While this is still nascent, in the last six months, AdvertiseCast is experiencing growing adoption of our Libsyn Auto Ads solution as more brands and agencies seek to buy podcast advertising programmatically like they purchase other digital ads.”
Rival platform Acast has also been investing heavily into programmatic advertising, and according to the company’s year-end results, programmatic ads now account for 13% of the platform’s overall revenue.
