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Digiday reports that The Economist claims monthly revenue from podcast ads has increased 50 percent in 2018. The Economist has five podcasts generating 7 million monthly downloads. And The Economist says its podcast CPMs are higher than YouTube’s network average CPM rates of between $2 and $3. The reason: Video is getting cluttered. Podcasts are like Netflix.
According to Digiday Media Buyers are starting to see the shift from video to podcasting. Head of Investment at Mediacom, Charlie Yeates, says there’s about a 30 percent premium on podcasts compared to onsite pre-roll video ads. Digiday says a lot of video pre-roll will be bought through networks, and the video ad ecosystem is suffering from the challenges of a more mature market forcing down CPMs. Video is also more expensive than buying into a successful podcast.
If you have a strong podcast buyers will seek you out. Yeates says, “You don’t get clients saying they want to be on pre-roll, but you get clients saying they want to be on the Economist’s podcast. With fewer ads in podcasts, brands can get more cut through than video, and the podcast format is more flexible. Brands can have a hand at influencing the editorial."