Full Answer
How do podcasts make money?
There are two main distinctions in how podcasts make money today. When combined together, they produce a steady revenue stream that can help you earn an income podcasting. The strategies that are currently the most popular fall into the direct monetization category. Direct podcast monetization is when the show is the thing you’re selling.
Are its podcasts business related?
Its podcasts are business related but here is the key, they are designed to count towards the continuing training that CPAs must all do. Their app is designed to monitor listening so that credit can be given.
What is podcast monetization and how does it work?
This is when you use your podcast as a tool to sell other things. Your podcast becomes the vehicle to promote products and create demand among your listeners. With the general definition down, now let’s dive into specific podcast monetization techniques for each category.
How much do podcast sponsors pay for 30 second ads?
If a podcast has between 1,000-2,499 listeners per episode, the 30 second ad unit has a $23 CPM. After 2,000 listens, the sponsor pays $46. That’s $23 * 2 because the sponsor is charged per 1,000 listens.
What is the revenue model of podcast?
Here's what the math boils down to. AdvertiseCast has a 70/30 revenue share model where the podcast host takes 70% of the revenue earned and they take 30%. If a podcast has between 1,000-2,499 listeners per episode, the 30 second ad unit has a $23 CPM. After 2,000 listens, the sponsor pays $46.
Do podcasts generate revenue?
Do podcasts make money? Of course they do! Big names are getting large amounts of listeners and large amounts of ad revenue in return. According to AdvertiseCast, average 30-second CPM (cost per 1K listeners) rates are $18, while 60-second CPMs are $25.
How do podcast companies make money?
Sponsorships are the most common way podcasters make money. This is when the podcast promotes the sponsor during the show. You probably hear your favorite shows plug their advertisers a few times in every episode. How much you earn from a sponsor depends on the number of downloads your episodes earn.
Do podcasts get paid on Spotify?
Streaming platforms like Spotify and Apple Podcasts pay out for streams, but the payout tends to be very low. Podcast sponsorships are one way, but for new podcasts, the likelihood of finding a high-paying sponsorship is slim unless you're already a well-established figure.
Do podcasts cost money?
For podcast listeners, podcasts are a way to enjoy great content from around the world for free. For podcast publishers, podcasts are a great way to reach a wide audience. Apple does not directly provide podcast updates or episodes.
What does CPM mean in podcasting?
Cost per mille5. Cost per mille (CPM) or cost per 1,000 listeners is the most common pricing method for podcasts. (
How many downloads is a successful podcast?
more than 26 downloads, you're in the top 50% of podcasts. more than 72 downloads, you're in the top 25% of podcasts. more than 231 downloads, you're in the top 10% of podcasts.
How much does Joe Rogan make from his podcast?
According to Forbes, Joe Rogan podcast income was $30m in 2019. And that's not counting YouTube revenue which also contributes to the amount. In spring 2019, Rogan mentioned in one of the interviews that his show records over 190 million monthly downloads.
What are dynamic insertion ads?
Dynamic insertion ads (also known simply as dynamic ads) are separate from the original podcast episode’s recording. This means that the placement...
What are the advantages of host-read podcast ads?
Host-read podcast ads can create a better brand recall than podcast ads that are not read by the host. Host-read ads are also more effective at enc...
What are the average podcast ad rates?
The pricing of podcast ads can be worked out in different ways. Most of the time it will be worked out using cost per mile (CPM), but fixed rates c...
Does it matter how big the audience of a podcast is?
In the case of advertising, quality actually matters more than quantity. A bigger audience isn’t necessarily better if the listeners aren’t that en...
How can you monetize a podcast?
There are five primary ways that you can use to monetize a podcast. These strategies are: podcast sponsorships, affiliate marketing, selling merch,...
Nederlands podcastonderzoek
First some numbers: off Dutch research from the University of Groningen (2019) shows that 65% of podcast listeners have never paid to listen to a podcast. But 22% have paid at some point, usually in the form of a donation. And 13% considered it but did not pay, for example because it was not so easily arranged.
In a way that suits you
If you want to make money with your podcast, it’s important that you do it in a way that suits you. So it is important to consider the following questions before choosing a revenue model:
Earning model 1: your podcast itself
This first revenue model sounds like an open door, but I see that many podcast makers still do not realize that their podcast is a sustainable instrument with which they build a personal and powerful bond with their listeners. With a podcast you create a unique stage for yourself and your message. This will help you build a loyal fan base.
Earning model 2: advertising and sponsoring
Placing advertisements in your podcast is still in its infancy in the Netherlands, but is already widely used in countries such as America. There are three options:
Earning model 3: linking product or service
In your podcast you are happy to share your knowledge, experiences and inspiration about a certain topic. Listeners like to know how to use a product or learn what to do to get the same results as you.
Earning model 4: collect online leads
In the past, as a marketer, you had a simple marketing mix compared to now. You remember them: the 5 P’s. The internet has opened up many more options for attracting customers. For example, you can collect online leads with blogs and online articles, start an online community, use social media and offer a giveaway, such as a free e-book.
Earning model 5: crowdfunding
In America, this fifth revenue model is regularly applied and you see it more and more in the Netherlands. For example, the American Mike Schubert has a podcast about Harry Potter books. Pretty exciting you might think. But he has a huge number of listeners, his podcast has been downloaded more than 50 million times.
How to Use the Podcast Ad Revenue Calculator
Drag the Podcast Download Count slider up or down based on expected result.
Factors That Determine Your Podcast Earnings Potential
What makes podcasts such a powerful tool to explore is that the listeners’ connection with the host can play just as important a role as their connection with the content of the show. Host-read ads generate better brand recall than podcast ads not read by the host.
Frequently Asked Questions
Dynamic insertion ads (also known simply as dynamic ads) are separate from the original podcast episode’s recording. This means that the placement of the ad can change from pre-roll to mid-roll to post-roll. It can also be deleted altogether in the future.
What are some examples of branded podcasts?
Because podcasts can be such an effective content marketing tool, some podcasters are producing podcasts for companies or other paying clients. McAfee's Hackable, Tinder's DTR, and Inside Trader Joe's are examples of branded podcasts.
Can radio companies get money back from podcasts?
With so many radio companies looking putting cash in to podcasting, it's a good time to look at how a radio company can get money back out of podcasting. There are a number of different revenue channels at the moment, but they're not all equal. And their relative importance may shift over time.
Is Panoply a podcast?
A number of people in the podcasting space provide services for other podcasters. Panoply, the podcasting network that spawned from Slate.com, decided to pivot away from producing content last year and transform itself into a tech company by offering a hosting platform for other enterprise podcasters. In the long run, this move may prove lucrative, as it is much easier to scale technology solutions than it is to scale hit content. Meanwhile, there's an entire Facebook group full of podcast editors offering up their services to new podcasters. We're also seeing podcast studios that can be rented by the hour, such as Podcast Detroit's recording spaces or PRX's Podcast Garage outside of Boston. For some radio companies, revenue dollars may be found in supporting podcasters, not becoming podcasters.
Is there a one size fits all model for podcast subscriptions?
There is no one-size-fits-all model for podcast subscriptions, and in a world where everybody from Netflix to Audible to The New York Times is charging a small monthly fee, there are legitimate questions about how many subscriptions the average consumer is willing to pay for. 3.
Does Ron Burgundy have a podcast?
Ron Burgundy has a podcast, and he's not even a real person! It feels like everybody has a podcast and soon, everybody will have a podcast network, too. Hubbard invested in PodcastOne while Entercom put money into Cadence13. iHeartRadio bought How Stuff Works for $50 million and Spotify, not to be outdone, bought Gimlet for a rumored $230 million.
How to monetize a podcast?
A clever way to monetize a podcast is to include a downloadable resource with each podcast episode that relates to that episode. This is called a content upgrade because it upgrades or enhances the listener’s experience.
Why is hosting a podcast important?
The biggest benefit of hosting a podcast is that you establish yourself as an authority in a niche. Your audience comes to respect you as an informed expert. So a great way to monetize a podcast is to offer services that tie in with your topic.
The Show Notes
Discover why more than 80,000 companies in 135 countries choose WP Engine for managed WordPress hosting.
The Default (yet Difficult) Revenue Model for Podcasts
Robert Bruce: I wanted to frame this conversation around the idea of, when you think about podcast revenue, when you think of how podcasts have been monetized in the past, what’s the first thing that comes up?
The Very Profitable Future of Audio Content
Brian Clark: Logged in experience is an overall online marketing trend no matter what your business model is. In this context, especially with the way you led in with the episode with the dream of sponsorship and advertising, how it turns out to be harder and sometimes less lucrative than people were expecting.
How Jerod Built an Online Course from Scratch
Jerod Morris: I think two things happened simultaneously. When we started Rainmaker.FM, I knew that I wanted to do a podcast about podcasting to share what I had learned. That’s how The Showrunner podcast was born. Jon had, had ideas about doing a course.
Why Podcasts Are Such a Great Fit with Online Courses
Jerod Morris: There’s a few different ways that you can take a course on podcasting. There are some out there that have focused a lot on the technical side and getting real heavy into the audio and going for that audio file type. We knew right off the bat that we weren’t going to go to that route because neither Jon nor I is that person.
How to Make Collaboration Work
Brian Clark: Jerod, let me go back a little bit to the collaboration aspect because I know, if it weren’t for the fact that we have Robert and I generally doing this show, there’s a good chance the show might not happen.
How Jerod Built An Online Course From Scratch
Jerod Morris: The first moment was a little overwhelming. It was one of those, “Oh man, what did I just sign up to do?” When you get in there, if you just get into the dashboard and you see the pieces, for me anyway, the picture didn’t quite become clear. I wasn’t really sure where to start.
Sponsorship Myth
It’S Just Pizza Money
- For the vast majority of podcasters, working on the $20 per 1,000 subscribers, the end result will be pizza money. It’s not a viable business model; kinda like making a business plan written on a napkin. Sure, we’ve all heard the famous stories of writing out a business model on a paper napkin over a few drinks in a bar. It worked for Groupon(kind of). But the idea of starting a venture that …
Alternative Methods
- A great podcaster has two goals. 1. serve their audience. 2. serve their business/brand. In that order. Podcasters usually have a passion, almost an obsession for their niche. A podcast is a vehicle to share their expertise (or guests) and their unique experiences, which helps educate their audience, building authority and trust. The natural progression for a business podcast is to offer …
Test Your Assumptions
- To see if you can create the podcast revenue you want, you should work out the following. 1. How long did it take me to get my existing number of subscribers? 2. What is the projected growth rate of my audience? 3. What is it costing me in time and money? (Be honest with yourself.) 4. Based on this information, when will I reach my BEP – breakeven ...
Will Revenue Follow Audience?
Value Proposition
- That’s not to say this newfound access to audiences will change the fundamentally open nature of podcasting at the publisher. While there will be most certainly exclusive productions on the streaming platform, Gimlet’s most popular offerings won’t disappear from other podcast platforms. At the time of the announcement, Spotify said they had no plans on putting the conte…
Subscription Business
- So what about the companies who do want to publish content behind a subscription fee? Podcast publisher Luminary has set its sights on being the Netflix of podcasts. With a planned launch date of June, the service will charge $8 a month to get access to podcasts from the likes of Trevor Noah, Conan O’Brien, and Malcolm Gladwell. The media startup hopes the draw of big names wil…
Reaching The Masses
- However, there’s also a drive to reach as many people as possible, much like its predecessor, broadcast radio. “I don’t see us putting our stuff behind a paywall,” said Grundmann of the public broadcaster. “Our goal is to reach as many people as we can and not just people who have money.” That doesn’t mean NPR has not benefited from new ways to monetize the format. Grun…