Why This Podcast Network Is Creating a More Efficient Way to Buy Host-Read Ads

For the founders of the comedy podcast network Headgum, home to podcasts like If I Were You and Dead Eyes, the choice between the scale of programmatic advertising and the intimacy of host-read ads was never an either-or but, fittingly, more of a yes-and. On Tuesday, the six-year-old network launched Gumball, a self-serve marketplace that lets podcasters and marketers buy and sell host-read advertisements, streamlining an often weeks-long process of back-and-forth communication, said co-founder and chief executive Marty Michael. Marketers and audio creators alike consider host-read ads a premium advertising vehicle, as they leverage the intimate relationship between host and listener to promote a product. As a result, CPMs for host-read ads can be triple their programmatic counterparts, according to Michael. But the level of collaboration that they require is prohibitively resource-intensive, making them an infeasible means of monetization for small operations, which make up the vast majority of the podcast ecosystem. Gumball aims to remedy the situation by giving both parties the tools to transact with each other in a standardized marketplace. Using the platform, marketers can search podcasts based on demographics, browse available inventory and purchase host-read ads with a credit card. For podcasters, the purchased ad-reads appear on a chronological feed along with a set of talking points about the product, allowing them to perform the spot while recording their podcast. Podcasts must have a minimum of 10,000 monthly downloads to join. The debut of Gumball comes at a critical juncture in the podcast ecosystem. New entrants with deep pockets have pushed the industry to embrace programmatic advertising, which lets networks monetize smaller shows. But the modern podcasting universe was born out of host-read ads, which require less technical sophistication, command higher CPMs and create a more immersive listening experience. Overall, advertising revenue from podcasting is on pace to top $2 billion by 2023, according to an IAB report. “We’re evolving the way that host-read ads can sustain the industry, because this push for programmatic advertising is not favored by the creators and not favored by the advertisers,” Michael said. “Creating an efficient way to buy host-read advertising is a very important step for the future of podcasting.” Gumball co-founders Amir Blumenfeld, Jake Hurwitz and Marty Michael developed the product internally at Headgum. Gumball brings order management to host-read ads Gumball springs nearly fully formed from the Headgum network, where the team has been internally testing the platform for years. Headgum, which has 30 podcasts, 10 million monthly downloads and more than 300 advertisers itself, gives the marketplace immediate adoption: At launch, Gumball will have 150 shows on its platform, such as Dear Hank & John and The Genius Recipe Tapes from Food52, including 30 Headgum programs. Athletic Greens, one of a number of brands that built its business on the back of host-read ads, has spent at least $500,000 using Gumball since 2019, said Martha Gallant, senior director of audio partnerships at the company. Not only does the platform simplify the exchange between parties, it makes testing ad campaigns easier and expands buyers’ access to podcasts, Gallant said. “For brands, meeting the right people, the people who could sell you a podcast ad, is still a high barrier to entry,” Gallant said. “Gumball democratizes a buyer’s access to shows and connections.” Gumball collects a revenue share of around 30%, but podcasters on the platform still take home a larger portion of the transaction than if they worked with a network because the software involves fewer intermediaries. By the end of January, Gumball had already booked as much revenue as it had the entire year prior, Michael said, though he wouldn't share financial specifics. While Gumball specifically streamlines the process of buying host-read ads, it also serves as one of the few order management platforms in the podcasting ecosystem, said Bryan Barletta, the founder of the podcast business and ad-tech media company Sounds Profitable. Despite the evolution of the industry, companies are still using Google Docs and email to manage their order forms, making Gumball one of the most efficient ways to purchase multiple ads without using an agency. “If I was a buyer, and I wanted to buy host-read ads from 100 shows, I don't know an easier way to do that than Gumball,” Barletta said. “This is the closest to a piece of technology that would allow mass buying and mass reporting.” Spotify Unveils Clickable Podcast Ads With Its Call to Action Card