The average CPM rate for a 60-second podcast ad spot slightly decreased in July 2023, going from $23.03 the previous month to $22.24, according to Libsyn’s monthly podcast advertising rates.
Podcast hosting platform Libsyn compiles the monthly reports using actual sales data from across its podcast marketplace AdvertiseCast network, which has an inventory of more than 3,000 podcasts and a monthly listener reach of over 190 million.
Overall, the average CPM rate has continued to decrease year over year, dropping from $23.63 in July 2022. In April this year, the IAB reported in its annual Digital Advertising Spend report that the UK podcast sector’s adspend growth was 29% lower in 2022 than the year before due to economic challenges such as the cost-of-living crisis and unstable political climate, resulting in a cooling period within the advertising market.
However, the IAB also predicts that podcast ad spending will continue to grow with further advertiser demand, growth in programmatic buying, and advancements in brand safety and measurement. Libsyn’s AdvertiseCast chief revenue officer Dave Hanley also says that the second half of the year can be an advantage to advertisers with brands capitalising on increased customer demand during the holidays and seasonal events.
“Brands can capitalise on increased consumer purchasing during major holidays and seasonal events — to build brand awareness and establish a presence in consumers' minds before the new year, leading to increased consideration and new customer conversions,” said Hanley. “Our comprehensive platform empowers advertisers to plan, manage, and measure their podcast advertising campaigns effectively, providing valuable insights to optimise reach and engagement with their target audience.”
Libsyn’s podcast advertising rates report also showed that the three highest CPM categories for July were Technology and Education, both averaging at $26, as well as Arts, which averaged at $25. This is mostly similar to the previous month, except that Business was one of the top three categories instead of Arts.
Additionally, three categories that advertisers can tap into at a more accessible CPM rate but still be able to reach a highly engaged audience include Fiction, Games, and Sports – averaging in the high teens to low 20s.