The amount of money being spent on podcast ads is growing every year.

This is an opportunity for podcasters, both to earn from their show as well as promote their show.

In this episode, we will talk more about how ad pricing works, a few good ad networks, and how you can use Podcast ads to promote your show.

How do you price Podcast ads?

Pricing is a very confusing aspect when it comes to podcast advertising.

Charges can be based on how popular the podcast is and how many downloads it gets in the first 30 days of releasing the episode.

But one big challenge in Podcasting today is that stats aren’t something that is publicly available for any podcasts.

So how do advertisers trust the podcast numbers?

Shows like “The Joe Rogan Show” and JLD’s “Entrepreneur on Fire” that are extremely popular earn thousands of dollars from sponsorships, due to the sheer listenership that they have.

Such shows have the liberty of charging advertisers huge amounts and advertisers would still be willing to buy ads from them.

But for other podcasts that aren’t as big as these, the challenge with pricing is a big one.

Podcast pricing usually follows two methods –

1. Flat rate price per ad
2. CPM based price

A flat rate pricing isn’t common but some of the newer ad networks are giving that option. I spoke about 2 such ad networks in my last episode and both of them charge pretty low flat rates.

One of the reasons for this is that the podcasts on these networks aren’t hugely popular and has about 500-1000 listens per episode on average.

The buyers on these networks are usually other podcasters who are looking at promoting their shows. So they are obviously looking for cost-effective ads that can give them some visibility.

Hence flat rate pricing makes sense for these networks and the podcasts.

But the more common pricing method is CPM-based pricing.

CPM stands for “cost per mille” or, cost per 1,000 impressions.

In one of his posts, John Lee Dumas mentions the advertising rates as –

• $18 per 1,000 listens (CPMs) for a 15-second pre-roll ad
• $25 per 1,000 listens (CPMs) for a 60 second mid-roll ad

Most podcasters charge around these for their ads – between $10 to $40 CPM.

In most cases these downloads are calculated for the first 30 days after the episode is released.

What you charge or, can charge for your show will depend upon its popularity and also the network that you plan to go with.

Podcast promotion using ads

Those were the two pricing methods that involved monetary exchange.

But some networks also facilitate podcast ads that are paid in kind, like ad swaps.

Ad swaps are basically an agreement between two podcasters to feature each other’s ad on their shows.

There is no money exchange involved.

Ad swaps are usually done between podcasts that have similar popularity in terms of download numbers.

The bigger ad networks don’t have this option. But some of the smaller networks like the ones I spoke about in the last episode do provide that option.

So, if you are a podcaster who is looking to place an ad for your show on another podcast, then I would recommend going with these networks.

We will be talking about things that you need to keep in mind in more detail in my next episode which will be about promoting your podcast using podcast ads.

Things you need to keep in mind

When agreeing to place an ad on your show, there are a couple of things you might want to keep in mind.

Remember that your primary objective is to provide value to your audience. While you also want to make money from your podcast, it is important that you take care of your audience’s interest as well.

1. Always vet the ad that you are being asked to place on your show. You might not have this option if you are going with the dynamic insertion from your host. But still, you should ensure that ads that you or, your audience wouldn’t like to hear on your show aren’t placed, particularly explicit ads.
2. Don’t compromise your principles, podcast quality, and audience interest to earn a few bucks.
3. Remember ads that are more than 15-20 seconds in the pre-roll and post-roll don’t work well with listeners. Avoid longer ads.
4. The mid-roll can be a maximum of about 60 seconds. Don’t run ads that are longer than that.

Podcast hosts that can help you make money with podcast ads

I have tried 3 different hosts until now for different shows that I host or, run.

These are Spreaker, Buzzsprout, and Acast.

While Acast is my favorite, Buzzsprout is a close second. Spreaker is something that I don’t recommend.

The reason I am talking about these 3 podcast hosts is that they are the ones who pay podcasters through sponsored ads.

I have heard that some of the other hosts like Podbean and Libsyn also pay you by running sponsored ads on your show. But since, I do not have first hand experience about these, I am not mentioning about them here.

All of these podcast hosts follow the CPM model. So if your show doesn’t have a lot of downloads, then the money you earn could be pretty low.

But it is always a good option when your podcast grows.

If your show has decent downloads and you are looking for a host who can help you earn some money, then these are some of the podcast hosts you can try.

Podcast ad networks

If your show is big and you have decent downloads, you can always look at some of the podcast ad networks that can help you make some good money from your show.

Some of the prominent ad networks are –

1. Advertisecast – They are a huge podcast network and have a nice collection of podcasts. The only caveat is that you can only work with them if your podcast has a nice amount of listens.
2. Midroll – Midroll has been there for some time and works with podcasts that are both big and small
3. Authentic Shows – Again this is a network that works with bigger podcasts with huge downloads.
4. Megaphone – Megaphone is a network that allows marketers to buy targeted ads on podcasts based on segmentation. Megaphone is available only to networks and podcasts with average downloads of 20,000 or more per episode. They were acquired by Spotify some time back.

Resources that I recommend

Here are some of the resources that I use and recommend. If you are new to podcasting, then these resources can help you get started.

Thank you for joining in

I hope you enjoyed this episode on podcast ads and you found value in the discussion.

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If you have any questions or, comments you can drop them below.

I will be talking more about the strategy to promote your podcast on other podcasts in my next episode. So don’t forget to tune in the next week.

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