How to Make Extra Income With Podcast Ads (2024)

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Want to put or increase ads on your show? Here’s what you should know

The podcast industry is growing quickly, and advertisers are paying attention. Selling advertising is one popular way to monetize a podcast.

Even if you don’t have your own show, you can take advantage of the expanding market by acting as a liaison to facilitate sales between podcasts and advertisers.

Podcasters can sell advertising space on their shows in a few different ways. There are podcast ad networks that act as a marketplace for podcasts and businesses; typically, these services take a cut of the sale.

Shows can also negotiate with brands on their own. Familiarize yourself with similar podcasts and pay attention to the advertisers on their shows. This will give you a good starting point forbrands to approach. If your show has a larger following, sometimes advertisers will come to you.

Advertisem*nts are typically sold by CPM, which stands for cost per mille, or cost per 1,000 listeners. Ad buying platform AdvertiseCast lists the going industry average rates for podcast advertising at $18 per 30-second ad CPM and $25 per 60-second ad CPM.

CPA, which stands for cost per acquisition, is another metric for podcast ad sales. This is results-dependent and calculated based on the number of sales or sign-ups an advertisem*nt creates.

Some advertisers might prefer a mix of the two methods, or want to negotiate a completely different option.

Why Sell Advertising on a Podcast?

Fifty-four percent of podcast consumers say they’re more likely to consider brands they hear advertised on podcasts, as opposed to the 7% who say they’re less likely, according to “The Podcast Consumer 2019,” a report by Edison Research and Triton Digital.

But when starting a new podcast, focus on building your audience first, rather than pursuing a sponsor right away. Creating a dedicated following will, in turn, attract advertisers. Uploading your podcast on big platforms like Spotify and Apple Podcasts can help to expand your audience. These outlets provide marketing tools and resources, and can increase accessibility for smaller podcasts.

Audience size, usually measured by downloads per episode, is often the biggest draw for advertisers. The demographic of listeners, the type of show, and audience engagement are also taken into consideration.

AdvertiseCast recommends that podcasts have at least 10 episodes published with a minimum of 5,000 listeners per episode before pursuing sponsors.

When deciding what advertisem*nts to feature on your show, make sure your first priority is staying true to your podcast identity. Don’t work with brands that aren’t cohesive with your message. You never want to risk jeopardizing the trust of your audience.

While advertising is a well-known podcast income source, there are numerous other ways to generate revenue in the industry. Money-makers like affiliate marketing, selling branded merchandise, or relying on crowdfunding can all be effective options. We’ll dive more into these other types of income later on.

How to Sell Advertising for Your Podcast

There are two main types of podcast advertising—host-read, or dynamically inserted ads.

For host-read ads, the advertiser will usually provide key talking points, and let the host fill in the rest of the dialogue, so that it doesn’t sound too scripted. Depending on the product, there may be some parts that must be read verbatim, such as a legal disclaimer. If the sponsorship includes an endorsem*nt, the company usually sends the host a product sample to try so that they’re able to speak candidly about their experience.

Host-read ads are “baked-in,” which means that listeners will hear the same ad regardless of where they are, and unless someone edits the original audio, the commercial will always be there.

Dynamically inserted ads are pre-produced commercials that are added to a show from an ad server. Listeners often hear different commercials as advertisers target specific demographics or locations.

Advertisem*nts are usually placed in the beginning (pre-roll), middle (mid-roll), or at the end of an episode (post-roll). Pre- and post-roll placements tend to be cheaper and shorter, lasting about 15-30 seconds. Mid-roll ads typically cost more, and can run as long as a minute. Longer shows might include a couple of mid-roll ad spaces.

Selling advertising on podcasts works best for shows that aren’t already trying to promote their own products or services.

You don’t need to have your own show to take advantage of the advertising opportunities available. You can create a full-time job out of negotiating ad sales between podcasts and sponsors, either working for a marketplace or individually.

Alternatives to Podcast Advertising

There are lots of other ways to make money through podcasting, many of which you can pursue with a smaller audience.

Affiliate Marketing

Many podcasts participate in affiliate marketing programs. When hosts mention a product on their show they provide a unique URL, often giving the audience a discount. When listeners make a purchase using that code, the podcast gets a cut of the sales.

Premium Subscriptions

In lieu of advertisem*nts, some podcasts prefer to charge listeners to subscribe to the show, or offer their audience access to ad-free content for a premium.

Crowdfunding

Crowdfunding platforms like Patreon give listeners the opportunity to donate in return for perks such as exclusive content or early-episode access.

Merchandise Sales

Podcasts with a dedicated audience also can make extra income through sales of branded merchandise or offering tickets to live shows or events.

Monetizing Expertise

Hosting a podcast is a great way to assert your expertise in a field. Monetize your knowledge through public speaking gigs or create a course. You also can sell your services as a podcast consultant or producer or by helping new podcasters learn the ropes.

How Much Money Can Advertising Make?

While Bloomberg Businessweek reported that several top podcasts making more than $1 million a year, don’t expect to start earning the big bucks right away. Most podcasts take a long time to establish an audience base and advertisers.

How much you earn from podcast advertising is based on three main factors—episode CPM, the number of episodes produced each month, and how many episode downloads you’re getting. The website Improve Podcast gives the following formula to calculate your estimated income:

Monthly income = episode CPM x number of episodes per month x number of downloads / 1000.

Once you start working with advertisers, experiment with selling different-length ads in different places in your show to find the most effective combination for your podcast.

This calculator from AdvertiseCast gives you an estimate of how much advertising income you can expect to make from your podcast.

The Bottom Line

Advertising can be a key revenue source for your podcast. The first step to attracting sponsors is to focus on building your audience. Big platforms like Spotify and Apple Podcasts can be a good place for new shows to find resources and increase accessibility.

Make sure to be realistic with your expectations—growing an audience, gaining their trust, and attracting advertisers takes time and effort. When you’re ready to pursue sponsorships, you can join a marketplace through an ad network, or approach brands independently.

Even if you don’t have your own podcast, you can earn extra income by selling advertisem*nts for other shows, either on your own, or through an agency.

How to Make Extra Income With Podcast Ads (2024)

FAQs

How to Make Extra Income With Podcast Ads? ›

Affiliate marketing: Similar to sponsorships, podcasters can earn commissions by promoting products or services they believe in. They can include affiliate links in their show notes or on their website, and earn a commission when their listeners make a purcha.

How much can I make with ads on my podcast? ›

Understanding podcast monetization

Earnings from ads are typically calculated based on cost per mille (CPM), which is the cost per 1000 listens. CPM rates can range from $18 to $50 for most podcasts, but those with highly engaged or niche audiences may command higher rates.

How to earn money through podcasts? ›

How do people make money from podcasts?
  1. Hosting live podcasts.
  2. Selling merchandise.
  3. Offering memberships.
  4. Joining an advertising network.
  5. Self-publishing a book.
  6. Promoting affiliate links.
  7. Selling services.
Feb 1, 2024

How much do podcasts make per 1,000 views? ›

The reality is: not all podcasters hit the big leagues and make as much money as Joe Rogan. More realistically, here's how much you could make from your own podcast using the most popular revenue streams: Podcast sponsorships: between $18 and $25 per 1,000 listeners.

What is the best platform to monetize a podcast? ›

TL;DR – Top 10 Podcast Platforms for Creators
  • Spotify for Podcasters.
  • Podbean.
  • Spreaker.
  • Streamyard.
  • Simplecast.
  • Blubrry.
  • Acast.
  • Libsyn.
May 6, 2024

How much is a 30-second ad on a podcast? ›

According to industry averages, a 30-second ad typically ranges from $18 to $25 per mille (CPM, or cost per thousand listeners), while a 60-second ad generally costs between $25 and $40 per CPM.

Is podcast advertising worth it? ›

Acast surveyed marketers and discovered that podcasts pair fantastically well with other forms of media by reaching young and engaged audiences. In combination with most media, most marketers say that podcasts improve campaign effectiveness by 21-40%.

Who is the highest paid podcaster? ›

Deep Dive into the Top Earning Podcasters
  • Joe Rogan ($30 Million) Joe Rogan is a popular comedian who gained popularity in Boston in 1988. ...
  • Karen Kilgariff & Georgia Hardstark ($15 Million) ...
  • Dax Shepard ($9 Million)
Jun 7, 2024

How realistic is it to make money from a podcast? ›

If you have 5,000 downloads per episode, you'll start to land sponsorships. You'll be able to charge about $20 CPM for ads. If you have 10,000 downloads per episode, people will really start to notice your show. You'll be able to charge about $50 CPM for ads.

How many followers do you need to make money on a podcast? ›

There's no specific listener count to guarantee income as a podcaster. To start making money with your podcast, focus on growing your listener base. A larger audience improves your earning potential. Focus on enhancing your podcast's quality and employ effective promotion strategies.

How hard is it to monetize a podcast? ›

As the number of people who listen increases, so will your revenue. But that also means this is a tough way to make money if you don't have many listeners. Generally, you can charge for “pre-roll” and “mid-roll” mentions. Mid-row (during your episode) pay more.

Is podcast passive income? ›

Successful podcasters focus on building multiple income streams and put a lot of emphasis on passive income.

How do podcast sponsors pay? ›

How Podcast Sponsorship Works. Prices for podcast sponsorships are typically based on the number of average downloads. Sponsors pay on a cost per mille (CPM) basis. Rates range from $18 to $50 CPM, though podcasts like This American Life or HowStuffWorks with millions of listeners can pull in a lot more.

How do I get my podcast funded? ›

Crowdfunding websites like Kickstarter and Indiegogo make raising funds for your podcast easy. Alternatively, Patreon allows fans to support your creative work with exclusive content and benefits through one-time donations or membership.

What is the podcast app that makes money? ›

With Shoutem, you can create your own podcast app and offer premium content to paid subscribers. Or, use in-app interstitial ads to generate revenue. No matter which option you choose, your new Shoutem app is the easiest way to generate added income from the work you're already doing.

How many ads in a 30 minute podcast? ›

One Pre-Roll Insertion Point and one Post-Roll often do the trick! Podcasts with longer episodes, 30 minutes or more, should try to have at least one Pre-Roll Insertion Point, one Mid-Roll Insertion Point, and one Post-Roll Insertion Point.

How profitable can podcasts be? ›

How much do podcasters make per episode? Typically, a podcaster with around 10,000 downloads per episode can expect to earn somewhere between $500 to $900. Very successful podcasts can earn much more, reaching up to $30 million in annual income.

How many viewers do you need to make money on a podcast? ›

There's no specific listener count to guarantee income as a podcaster. To start making money with your podcast, focus on growing your listener base. A larger audience improves your earning potential. Focus on enhancing your podcast's quality and employ effective promotion strategies.

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