What does it cost to sponsor a podcast?

by | Nov 23, 2022 | Podcast Monetization

Podcasting has emerged as a great way to monetize content in the digital age. Podcasters can sell ad space in their podcast and sponsors attract new customers in return. The endless range of podcast genres and increasing accessibility of podcasts is attracting brands from every corner of the market. Clothing brands, digital media companies, sporting goods stores. The list goes on and on. To better understand how and why companies are looking to monetize through podcast advertising, it is important to understand the pricing model.

CPM

Cost per mille, or otherwise known as cost per thousand, is used to determine the amount a sponsor will pay for a podcast ad. The CPM rate is the rate charged for every 1,000 impressions. If a podcast episode reaches 5,000 listeners and the CPM rate is 25, the ad would cost $125. For midroll ads, which are very common, the average CPM is around 25. This cost varies though depending on the show and the type of ad combo being used.

CPM = rate x number of listeners( by thousands)

The word impressions is used in the podcast industry to be synonymous with listeners. Viewing a podcast’s listenership data is the best way to determine the amount of impressions they get. Higher CPM rates does not mean more conversions, but it is usually associated with higher impression levels, which may fit your current marketing needs. 

CPA

The cost per acquisition model is based on conversions rather than just impressions. The pricing functions the same way as CPM, but the CPA rate is multiplied by the number of acquisitions that came as a result of the advertisement instead of just the number of listeners. CPA is frequently used by smaller podcasts who aim to monetize on customer acquisition.

Although there are other ways to monetize on podcasts, sponsoring a podcast through direct advertising provides a high ROI. Monetizing their podcasts is the goal for most creators, giving way for brands to take advantage of the opportunities provided to build brand recognition and drive growth. To learn more about podcast advertising and pricing models, visit Brand Application – Modern Stoa.

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