Why Podcast Advertisers Should Look Beyond Reach And Low CPMs.

Podcast advertisers that remain focused on reach and low CPMs may be missing the medium’s biggest advantage, says Earmax Media co-founder Andy Maxwell. He argues that podcast campaigns should instead be built around conversions, well-defined communities, and creative that gives listeners a reason to act.

Appearing on the podcast “PodBiz,” Maxwell says some brands continue to approach podcast inventory as part of a broader digital audio buy, emphasizing how many people they can reach and how cheaply they can reach them.

That model fails to account for the relationship between a podcast and its audience, he says.

“What we do is actually put the focus on tangible conversions,” Maxwell says. “The more the brands are focused on conversions and things like brand affinity and brand uplift and aligning with specific audiences with clear messaging, that’s what is beautiful about the podcast medium.”

The smaller size of some podcast audiences should not necessarily make them less valuable to advertisers. Maxwell says a narrowly focused show can command a premium when it has developed a strong community around a particular subject, interest or identity.

“If you can double down on that audience and that niche, the reach figure doesn’t matter as much,” he says. “It’s the community that you build, and you can charge a premium for that community.”

That requires buyers to look beyond downloads as the primary measure of a podcast’s advertising potential. Maxwell says campaigns should be evaluated against the business outcome an advertiser is seeking, whether that is purchases, leads, return on investment, or a longer-term change in brand perception.

His argument rests partly on what he describes as the “active attention” podcast listeners bring to the medium. Unlike audiences encountering audio while a radio station plays in the background, podcast listeners have often searched for a program, acted on a recommendation or selected a particular episode.

“These podcast listeners are actively seeking out this content,” Maxwell says. Some then spend one, two or even three hours listening, creating a different advertising environment than media consumed more passively. Maxwell contrasts that behavior with radio listening, which he characterizes as more likely to occur in the background while someone drives, works or handles family responsibilities. He says podcast media buyers need to understand that distinction when placing a value on the audience.

Yet access to an engaged audience doesn’t guarantee an effective campaign. Maxwell says the media plan and the advertising creative must work together. Even a precisely targeted placement can underperform if the commercial fails to connect with listeners.

“You cannot overlook the importance of a great audio creative ad,” he says. “If you’ve got a shit ad, it’s still going to do badly.”

Maxwell, who co-founded the Australia-based agency with Ralph van Dijk in 2024, also questions whether producing a short-run branded podcast is the best use of an advertiser’s budget. He says his earlier work in branded content demonstrated how difficult it is to build an audience without a significant and sustained promotional investment. Breaking through has become even harder as the number of podcasts and celebrity-led shows has increased.

For a brand with a limited budget, Maxwell thinks sponsoring an established program may generate better results than attempting to develop an audience from scratch. “I would strongly advise, unless you’re willing to commit to that podcast long term — as in weekly or biweekly for years — you’re much better off sponsoring podcasts with a built-in audience already of exactly who you want to reach,” he says.

That approach lets brands benefit from an existing relationship between a host and listeners while avoiding the cost and uncertainty of launching and promoting their own show. Maxwell says advertisers can identify programs serving the desired audience, work with hosts they trust and “piggyback off of their success.”