Podcast Summary: Grow The Show – Episode 202: "This Ad Strategy Could Be Hurting Your Podcast"

Release Date: December 2, 2024
Host: Kevin Chemidlin

Introduction to Dynamic Ads

In Episode 202 of Grow The Show, host Kevin Chemidlin delves into the potential pitfalls of using dynamic ads in podcasts. Dynamic ads are automatically inserted by hosting platforms or third-party services, allowing podcasters to earn revenue without actively managing the advertisements. While this may seem advantageous, Kevin argues that dynamic ads can inadvertently harm a podcast's growth and listener engagement.

Case Study: The Decline After Implementing Dynamic Ads

Kevin begins by recounting a recent conversation with a former client whose podcast experienced significant growth while under the Grow the Show accelerator. However, after implementing dynamic ads, the podcaster noticed a drastic decline in downloads and listener engagement.

• Initial Success: The client’s podcast had consistently received thousands of downloads per episode with high completion rates.

• Implementation of Dynamic Ads: In July, the podcaster enabled dynamic ads through their hosting platform, which automatically inserted multiple ads per episode without any personal input.

• Immediate Impact: Shortly after activating dynamic ads, the podcast’s completion rates plummeted, leading to a substantial decrease in overall downloads. Kevin emphasizes the correlation between the introduction of dynamic ads and the decline in the show's performance.

Kevin Chemidlin [07:30]: "Your completion rates take a huge nosedive. This is major because your podcast was a key part of your business."

Issues with Dynamic Ads

Kevin identifies several critical issues associated with dynamic ads:

1. Irrelevant Content: Dynamic ads often feature generic, unrelated products or services (e.g., McDonald's Big Mac ads) that do not align with the podcast’s content or audience interests.

2. Listener Experience: Having multiple ads, especially at the beginning of episodes, can alienate listeners. New listeners encountering ads immediately may choose to abandon the podcast altogether.

3. Minimal Revenue: For podcasters with modest download numbers (typically between 100 to a few thousand per episode), the financial gain from dynamic ads is minimal, often amounting to only a few dollars per thousand downloads.

Kevin Chemidlin [15:45]: "Those dynamically inserted ads don't pay you that much anyway... the impact on your show is going to be massive."

Personal Anecdote: Kevin's Own Experience

Kevin shares his experience with dynamic ads using his own podcast hosted on Megaphone. Upon activating dynamic ads, he encountered irrelevant advertising content that significantly reduced his podcast's completion rates.

Kevin Chemidlin [10:20]: "The next day I listened to my most recent episode and I pressed play. And what was the first thing I heard all this week? 50% off Big Macs."

Contrasting Success: Tim Ferriss’s Approach

To highlight the importance of relevant and host-read advertisements, Kevin references Tim Ferriss’s experiment in 2020. Ferriss temporarily removed all ads from his podcast to switch to a listener-supported model via Patreon-like support tiers.

• Positive Outcome: Initially, the transition led to increased revenue and deeper connections with listeners.

• Listener Feedback: Despite financial success, Ferriss ended the experiment early due to overwhelming listener feedback expressing that they missed the curated, relevant ads which had become a valued aspect of the show.

Kevin Chemidlin [28:10]: "The ads actually became a value add on the show. His listeners missed it because they missed finding out about amazing, cool products."

Best Practices for Podcast Advertising

Kevin concludes with actionable advice for podcasters aiming to monetize their shows effectively:

1. Avoid Dynamic Ads: Given their potential to disrupt listener engagement and offer minimal financial returns, dynamic ads are generally not recommended, especially for smaller podcasts.

2. Seek Relevant Sponsorships: Actively pursue sponsorships and affiliate partnerships that align with your podcast’s content and audience interests. This approach not only ensures relevance but also enhances listener trust and engagement.

3. Integrate Ads Seamlessly: Host-read ads or tailored sponsorship messages can add value to your podcast by introducing listeners to products or services they find genuinely useful.

Kevin Chemidlin [33:50]: "The products and services that you recommend in your advertisements should somehow be related to the topic of your show, to the mission of your show."

Conclusion

Episode 202 of Grow The Show serves as a cautionary tale against the uncritical adoption of dynamic ad strategies. Kevin Chemidlin emphasizes the importance of maintaining relevance and control over advertising content to preserve listener trust and engagement. By prioritizing meaningful and aligned sponsorships, podcasters can effectively monetize their content without compromising the quality of the listener experience.

Additional Resources

For podcasters seeking more structured guidance, Kevin promotes the Grow the Show Academy, an online community offering tools, templates, training, and live coaching to accelerate podcast growth and monetization.

Kevin Chemidlin [05:45]: "Join us in the Grow the Show Academy... you'll gain access to strategies that are working today, along with live coaching from me."

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