When it comes to podcasting, ‘monetization’ is a word that is often on pro-podcasters' minds – and with good reason.
Brands understand that podcasters have developed warm relationships with their listeners, and want to partner with them to reach these audiences. Pro-podcasters can (and should) take advantage of this if they’re looking to make some extra money and promote a product or service they love.
In this blog, I will not be focusing on shows that already belong to networks, as the network will own monetization conversations. Instead, I’ll be speaking to podcasters who are curious to learn more about monetization and partnerships in the podcasting world.
Before we dive in, here’s one key thing to remember: Monetization shouldn't be the primary goal of your show. It takes a while to build a loyal and dedicated audience, so keep your focus on creating great content and connecting with your listeners!
The basics of monetization
Before we dive into monetization for podcasters, let’s cover some basics.
If you’ve listened to a podcast, you’ve likely heard a sponsored ad at some point. The ad might have been read by the host or could have sounded similar to an ad you’d hear on the radio. Either way, there is money passing hands for the ad slot.
Here are the key terms to know:
Dynamically Inserted Ads (DIA): An ad that is recorded separately and inserted into a pre, mid, or post-roll position in the podcast. These ads are targeted to certain audience parameters (age, gender, income, location, etc) and will run until the contractually agreed-upon amount of downloads has been reached.
Baked in Ads: An ad that will appear in the podcast forever across all downloads. Think about YouTube sponsorships–no matter who is watching the video, or when, the sponsor stays the same.
Host Read Ads: A host read ad can be baked in or a DIA. The ad is read out by the host of the show but does not necessarily include an endorsement
For example: Today’s episode is brought to you by Joe’s Winter Tires, quality tires at affordable prices. Visit the link in the description to learn more.
Endorsed Ads: An endorsed ad includes the host providing a personal testimonial of the good or service.
For example: Last winter I didn’t get snow tires and it was a huge mistake! This year I trusted the professionals at Joe’s Winter Tires to help me choose the best fit for my car, and expertly install them on my vehicle. I loved my experience and recommend visiting them to anyone looking for new tires. Visit the link in the description to learn more.
Non-Endorsed Ads: Host or non-host-read ad that doesn’t include any endorsement.
Impression: In podcast advertising, an ‘impression’ is a download
Pre-Roll Ads: Ads that are usually 15-30 seconds long and run before or after the show’s intro.
Mid Roll Ads: Ads that are 30-60 seconds and are inserted around the midpoint of an episode.
Post Roll Ads: Ads that are 15-30 seconds and run at the end of the show.
CPM: The cost per 1,000 people reached
Now that we’ve covered the basics, let’s jump into the best ways podcasters can monetize their shows.
1. Dynamically inserted ads
Dynamically inserted ads can be a fantastic tool for anyone looking to begin to monetize their show. Many networks and hosting platforms have programs that allow podcasters to easily monetize their show. If you’ve opted in, the ad slot on your show will be automatically filled. Easy!
One downside of most dynamically inserted ads is that there isn't full oversight on what brand or product will be advertised. This is because the ad slots are sold by a network, filled by an opt-in sponsorship program, or by a media buying agency. Because of the lack of control associated with this kind of dynamically inserted ad, many podcasters aren’t interested in traditional monetization.
For example, if your podcast is hosted on Spotify for podcasts, you can opt into an invite-only ad program, where ads can be dynamically inserted into your show.
But this lack of control doesn't mean you can’t take advantage of dynamically inserting ads into your own show.
CoHost allows you to insert your own pre and post-roll ads on individual episodes, and remove or swap them out for others. This means you can create a partnership with a sponsor, create their own ad, and insert it in your show.
This ad can be read and created by you, or by your partner. You can decide what option works best for you. Remember, only take on host read ads for brands products actually want to endorse- it’s your reputation on the line!
Here are a few things you can use dynamically inserted ads for:
- A timely call-to-action (CTA), like upcoming webinars or conferences
- Any promotions currently running that the audience can take advantage of, like 15% off a product or service
- Promote an upcoming season and its launch date on your back catalog of episodes
2. Host read ads
Host-read ads are exactly what they sound like. As the host, you’ll be the one reading the ad for the product or service.
Host-read ads are fantastic because they leverage the parasocial relationship that podcast hosts form with their audience. According to Forbes, these ads carry the weight of a suggestion from a friend; therefore, they result in higher conversation rates. After all, most people take the suggestions of friends more seriously than those of strangers.
As a result, you can typically charge more for these kinds of ads – which is great! However, they do come with a risk. You should only take on host-read ad opportunities for products, services, or anything else that you actually want to endorse.
Parasocial relationships are built on trust, and if you endorse a bad product, your audience can quickly lose the trust you’ve worked to build up with them. Carefully vet these opportunities.
Beyond ads for external sponsors, you can also use host-read ads to:
- An evergreen call to action like subscribing to a newsletter, or following your show on socials
- Promoting other podcasts you’ve featured on or worked with
- Encouraging the audience to check out supporting content that lives on your website or other platforms
3. Offering an ad in exchange for a guest feature
As a producer, one of the challenges I run into when creating a show is guest sourcing. When it comes to cold outreach, on average, one guest ends up being confirmed for every 5-10 potential guests I reach out to.
Especially if you’re targeting high-profile and expert guests, their time is at a premium, and you may have to sweeten the pot to encourage them to come on the show.
Now you might be thinking: I host an established show with a big audience. Isn’t the exposure enough?
In some cases, the answer might be yes… but in many cases, these high-profile and expert individuals are receiving multiple requests. They don’t need your show. Offering a partnership can be a way to stand out and secure the expert guests you want.
A great way to entice a guest is to offer sponsorship of the episode they appear on. By offering an ad in exchange for them coming on the podcast, you’re differentiating yourself from other podcasts while also giving them a dedicated way to promote a product or service.
Pre-roll ads are especially appealing as they are what listeners hear right off the top of the episode.
Things to consider when offering an ad in exchange for a guest spot:
- Will the partnership include social media posts?
- Will their logo be included in the episode art?
- Will they be mentioned in the description? Will they have links to their products and services in the show notes?
CoHost Tip: If the guest/organization isn't as high profile, you can consider a partnership for services. For example, an organization that specializes in video assets has its CMO come on your podcast, and they get a pre-roll ad on one or multiple episodes. In exchange, their organization creates one video asset per episode of the season. It’s a win-win.
4. Premium content
Another way for pro podcasters to make some extra income from their show is to offer premium content to their subscribers.
Apple Podcasts and Spotify, two of the major podcast platforms, both offer subscription-based services that allow podcasts to provide content that lives behind a paywall. This can include additional episodes, behind-the-scenes content, personalized content, and much more!
Apple Podcasts’ “Apple Podcasters Program”
Apple Podcasts uses the ‘Apple Podcasters Program’ to allow creators and networks to sell subscriptions to their show(s). Creators set their price, and receive 70% of the subscription price at each billing cycle (minus applicable taxes). After a subscriber accumulates one year of paid subscription, the profit increases to 85%.
Creators can tailor what their subscribers get, for example:
- Ad-free listening
- Bonus Episodes
- Early access
- Subscriber-only shows
- Archive access
Spotify and Patreon collaboration
Spotify and Patreon, a monetization platform, teamed up in the Summer of 2023 to allow creators to integrate their Spotify and Patreon accounts. This means that listeners who are paying a Patreon subscription can access exclusive audio content right on Spotify.
Patreon is a great tool for podcasters to use on its own, or alongside exclusive audio they offer on Spotify. Patreon allows creators to customize what their subscribers receive. This can include access to behind-the-scenes content, physical merchandise for the show, and much more. It’s a great option for any pro podcasters looking to begin to monetize their content and nurture their community.
5. Sponsorships
If you’re not part of a network, chances are you’ll have to go and find partners for monetization yourself, and pitch the brands you want to work with.
Sponsorship can be for an entire series or one episode. You might even have more than one sponsorship an episode, by selling sponsorship inventory of pre, mid, and post-roll ads. Ultimately, this choice is up to you.
The bottom line is that sponsorship is a form of monetization that can help cover your production costs and make money from your show.
When pitching a sponsorship, the most important thing to keep in mind is the why. Why should this brand want to get in front of your audience?
Remember, it's not all about downloads. Many potential sponsors might be initially impressed with high download numbers, but they’re not everything, especially if they aren’t interested in reaching the people who are tuning in.
Think of it this way, if you have 20 thousand downloads an episode, that’s impressive! But, if 90% of them are under the age of 20 and live in Europe, an American brand that targets 35-50-year-olds ultimately won’t be interested.
CoHost Tip: If you have a smaller audience, demonstrate how engaged they are, and how they relate to the brand. You can use metrics like unique listeners, consumption rate, and social media engagement. A smaller audience is not a bad thing.
The next thing to consider is what you are offering them. A typical sponsorship agreement looks something like this:
- 2x social posts per episode that include the sponsor’s logo in the corner
- 1x pre-roll ad per episode
- 3x host read ad per season
- Logo on the series cover art
- Mentions in all show notes, including one link
- One line host-read ad in the series trailer
Your offer depends on a few factors, such as:
- How much money you are looking for for sponsorship?
- How big and engaged is your audience?
- How high profile is your podcast? (do you have a host with a large following? Have you won awards, etc?)
How CoHost can help podcasters monetize their show
B2B Analytics
CoHost provides robust B2B Analytics that will help you understand your audience –which puts you in a better position to pitch guests, partnerships, and sponsorships. You get access to the companies who are listening, their income, location, and how large the organization is. You can use this information to:
- Tweak your content to ensure you’re reaching your target audience
- Verify you’re reaching your ideal listeners
- Tailor your sponsorship pitches or proposals to specific companies
Advanced Audience Demographics
CoHost’s Advanced Audience Demographics gives you in-depth information into your listeners’ demographic and psychographic data including their Social media habits, household income, family members, and more.
With this information, you’re well-equipped to pitch brands and guests with detailed information about why your show is a great fit.
For example, let’s say your show targets established entrepreneurs. Initially, you think that you should be pitching financial services companies, but after looking at your audience insights, you realize that 85% of your audience have pets and are making over 75k. You’re now equipped to pitch brands that want to reach pet owners who are willing to pay for extra services for their pets.
Both B2B Analytics and Audience Advanced Demographics are a part of the CoHost Prefix. This means that regardless of your hosting setup, you can access in-depth audience insights and podcast analytics.
Audio insertion
CoHost allows podcasters to insert pre and post-roll ads on any episode, swapping them out whenever needed. This gives podcasters the flexibility to offer episode or series sponsorships and run ads on their show for a set duration of time, all while keeping complete control.
Are you ready to start monetizing your podcast?
While monetization might sound scary, it is a great opportunity to promote your podcast, network with influential guests, or cover your production costs. Whatever your podcast goals are, think about how you can use ads and partnerships to help achieve them.
To decide what monetization route you want to take, it’s important to sit down and consider a few key questions:
- How much oversight do you want?
- Do you have the capacity to take on creating additional content?
- What brands align with your audience?
- What criteria do you want to set in order to endorse a product?
- And other considerations unique to you and your show!
If you’re interested in how CoHost can help you gather the podcast analytics and audience insights that advertisers want most, reach out to our team.
