It’s anticipated that by 2023, podcast ad revenue will exceed $2 billion.

What’s more, it’s expected to continue on the same trajectory to reach almost $3 billion in 2025. To put this into perspective, podcast statistics estimated that it was “only” $1.3 billion in 2021. So, there’s a lot of money to be made by means of podcast sponsorship. 

Let’s be honest, though.... It’s tough-going running a podcast. From content generation to editing, there’s a considerable amount of effort involved.

Wouldn’t it be great if you could get paid for all this hard work? Well, you CAN if you secure podcast sponsors.

With the help of a podcast sponsor, you can monetize your show, grow your platform and, best of all, build long-term relationships with various brands. But, let's start at the beginning...

What IS Podcast Sponsorship?

Podcast sponsorship happens when a brand pays a podcast so that they can take advantage of their audience in the hopes of winning new potential customers. To do this, they can use different types of ads. 

One of the main ways in which podcast sponsorship is different from other types of traditional advertising is that it’s very targeted. You’ll be surprised by the niche subjects that podcasts cover. 

Also, most listeners are much more tuned in to what the host of their favorite podcast says than what the writers on their favorite blog write. All in all, there’s a greater level of trust and connection between a podcast host and the listeners making it a very effective marketing platform. 

How Do Podcast Sponsorships Work?

Here's your options...

1. Ad Format - A podcast sponsor, or advertiser, pays you to promote their goods or services over one or more podcast episodes. You’re free to get a little creative, but usually, hosts use one of two ways to run ads: radio-style or host-read.
2. Radio-Style Ads - With this format, a third-party marketing company creates the ads, and you place them somewhere in your episode. Is it effective? Well, according to Edison Research, 70% of listeners consider a product after hearing about it through a favorite podcast. So, yes! Some podcast sponsors only work with hosts who run radio-style ads, which is worth bearing in mind.
3. Host-Read Ads - Instead of inserting an ad, you talk about the product or service and why it works for you. It’s up to you to add the narrative... Just make sure it sounds natural and flows well. This is the most popular option, making up over 63% of podcast ads.

Whichever option you choose, consider the three place to run an ad:

• Pre-roll:  right before the show starts
• Mid-roll:  somewhere during the episode
• Post-roll:  after the show

So, What's Your Sponsorship Model?

1. CPM - With CPM, or “Cost Per Mille,” you’re paid for every 1,000 downloads. Here’s an example:
   1. Your sponsor pays $20 per 1,000 downloads (you can charge, on average, between $10 and $50, according to HubSpot).
   2. People download your show 100,000 times.
   3. You earn $2,000 for that episode. The problem? This model works best for big shows. Many sponsors won’t work with small to mid-sized podcasts through the CPM model.
2. Affiliate Model - Some brands let you sign up as an affiliate. You’re paid whenever a listener buys the products you’re promoting. On the plus side, there’s flexibility over how often you promote the product, and there’s no limit to how much you can earn. The downside? There’s no guaranteed income, and you could earn nothing. Affiliate marketing doesn’t work for everyone.
3. Value-Based Sponsorship - Are you a small to mid-sized podcast? Value-based sponsorship might be a good option for you. Unlike with CPM, you’re not paid per the number of downloads. Instead, you negotiate a set rate with the sponsor (for example, $50 per episode). It doesn’t matter how many downloads you get: You won’t earn more (or less) than $50. Clearly, it’s not a great model for large shows with high download rates, but it could be great for smaller or niche podcasts.

Now, Here's the Heart of the Matter... How to get SPONSORS!

1. Reach out to Brands / Sponsors Directly - Research podcasts in your niche. Check them out (or have a listen!) and identify which products or services they advertise. Look up the company’s details and find a point of contact. Pitch them directly. Don’t worry about the pitch just yet. We’ll take a look at what to include further down.
2. Partner with a Hosting Service - Podcast hosting services give your podcast a home on the internet. These services let you create, manage, and monetize your podcast. Here are some examples: Anchor: Anchor Sponsorships gives you control over ad placement and the types of ads you run. This platform is free and could be a great option for new podcasters. Buzzsprout: The Buzzsprout Affiliate Marketplace helps you find and connect with potential sponsors. It’s a good option if you’re keen on trying affiliate marketing. Transistor: For a monthly fee, you can create and manage multiple podcasts, which could boost your chance of finding (and securing) sponsors.
3. Join a Podcast Network - Some networks let you list your show (sometimes for free) on their platform. Potential sponsors browse these platforms and reach out to the shows they’re interested in working with. This is a great way to build some exposure, but if you’re a niche podcast or still building an audience, it may be less effective than other methods. Some networks are hard to join, and they often expect a cut in commission for pairing you with a brand.
4. Use a Directory - (We talked about this last week!) From Spotify to Apple Podcasts to Google Podcasts, don’t forget to join podcast directories. There’s always the chance you’ll connect with a sponsor this way.

The Bottom Line is... You Can Sell SPONSORSHIPS at Any Stage!

If selling sponsorships is the way you want to monetize your podcast, then take it from me: you CAN do it.

If you’re willing to take whatever you can get (remember, it’s not just about the money), focus on creating relevant (and sellable) content, make solid plans for distribution and growth, get creative with what you have to offer, and surround yourself with talented people.

Coming Next Week...

How to select the right MUSIC for your podcast.

Music is all around us intersecting our lives, regulating our moods and bringing good vibes to those who are listening, so we don't want to miss this opportunity to match your podcast's brand with an audio setting, tone, and mood that matches.

'Til next week!

Please DON'T HESITATE to send me any questions or comments you might have and, please SHARE this newsletter by forwarding to a friend!

Let's start "Streaming Your Story"

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