Because programmatic ads are dynamically inserted and not an actual part of the podcast—and because the host isn’t the one recording them—it’s easier to go in and edit a part of the podcast ad creative that isn’t working well, or adjust accordingly if the ad is working better on some podcasts than it is others, she said.
Dwork equated the channel to display advertising or “other lower funnel channels” due to how easy it is to optimize the creative according to performance. “You’re able to do network buys and run multiple variations of creative across multiple networks, and then optimize, so we are able to see more of a strong direct ROI tied to those buys,” she said.
The other advantage of programmatic ads is that they are generally cheaper—they typically run for between a third and a quarter of the price of a host-read ad, according to Kit Gray, president and co-founder of podcast network PodcastOne.
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But what brands might gain in flexibility and price, they can lose in authenticity. Programmatic ads are never going to be as impactful as host-read podcast ads, Gray said. “When you get a host that you’re listening to to use your product, talk about it in a way that relates to their audience … it’s going to be much more effective than a pre-produced spot,” he said.
Men’s grooming brand Manscaped has been testing programmatic podcast ads for the past few years, but found that they “don’t come close to having the same impact as a host-read podcast ad read,” said Marketing VP Joey Kovac.
Undergarments brand ThirdLove also favors host-read ads because they bring a greater level of authenticity to a more engaged audience, said Jamie Zimmerman, the brand’s director of paid media marketing. Although the brand has currently paused all podcast ads as it tests a shift in strategy, when it returns, it will “continue to leverage a majority of host-read spots” in order to build trust with its community, as well as podcast hosts themselves, she said.
Part of the appeal of host-read ads is having a trusted voice that the listener is familiar with promoting a brand. Programmatic ads, on the other hand, are often read by voice actors whom the listeners may not be familiar with. Mint Mobile worked around this problem by having its founder, actor Ryan Reynolds, read its programmatic ads.
As a result, the listener was still hearing a voice they were familiar with, even if the message was delivered programmatically. Aron North, chief marketing officer at Mint Mobile, said that having the famous actor read the ads “100% has an impact” on their positive performance.
“Ryan adds a high degree of credibility,” North added.