Automotive company Lexus (more accurately, Southern California Lexus Dealers) has signed a 26-week deal to sponsor podcasts at public radio station KCRW in Santa Monica, California. The deal is based on CPM (cost per thousand) which means Lexus will be paying for the actual number of downloads the podcast will get. The company’s links and logos will appear on the KCRW podcast player, and the brand will be mentioned at the beginning of each podcast.

Lexus joins companies like Volvo, Audi and General Motors now using podcasts to appeal to a niche audience, specifically younger customers who use iPods. In fact many companies are tapping into the marketing potential of podcasting.

My article for MarketingProfs earlier this year highlighted opportunities for companies to sponsor existing high-quality podcasts.

Sponsorship allows you to associate your organization with a reputable podcast, and it gives you an instant audience. For example, sponsors of IT Conversations reach an audience of 14,000-15,000 listeners. Sponsoring others’ podcasts can also be a viable alternative to producing your own podcasts and building up the listener base from scratch, for potentially less expense and better ROI. Sponsor slots shouldn’t sound like commercial interruptions; they should be relevant to the listener and add value.

Interestingly, Lexus spots will be heard on feeds that are currently featured front and center on the iTunes podcast page. In podcast terms, that’s the equivalent of being featured on Amazon’s home page.