Podcast Growth: Sponsors and Advertisers Guide
If you have a podcast and an audience, you are in a position to monetize your podcast, by putting other brands and messages in front of your audience.
Why are other brands be interested in my podcast?
Podcast listeners are typically educated, affluent, and devoted.
Their spending power and social influence are something other brands crave.
Podcasts are also a very personal medium. Most listeners engage by themselves, through headphones, and build trust with the host or brand over time.
What is a Sponsor?
A sponsorship is typically an ongoing commitment between the sponsor and the podcast. Sponsorship can range over a few episodes, a single season, or several years. The advantages for you, as the podcaster, are long term support and higher rates.
A sponsor’s message lives in the episode forever, so new listeners will hear their message if they listen to older episodes. Sponsors believe in the upside of your podcast and can be sold on projected growth. You will need a history of consistent growth before you can approach any sponsors.
What is an Advertiser?
An advertisement signs up for specific ad spots over a certain period of time. We recommend setting up dynamic ad insertion for your podcast. This way, you can sell ad spots based on the most current rates over a certain period of time or once their quota of engagement is reached.
The advertiser’s message only lasts for a period of time, but it will always be relevant and can be placed into all of your episodes. Selling these ad spots can take a little more work, and they are only guaranteed for a certain period of time.
What is Placement?
There are several places within your podcast brand that can be monetized. There are certain advantages and disadvantages to each ad spot:
Billboard Ad:
A billboard ad is a short (about 10 seconds) mention of a sponsor or advertiser during the beginning, middle or end of an episode. (Example: Thanks again to our sponsor ____ for supporting this episode. Remember to check out their website.)
Extra Media Reach:
Podcasts with a good social media presence can also provide extra reach to sponsors/advertisers by plugging the brand or product to their audience. This usually works better with non-commercial sponsors or when used in a creative way that doesn’t appear overly commercialized.
Visual Branding:
A podcast’s visual branding is a great sell for premier sponsors. Consider creating episode or season specific cover art and reserving a space to highlight the premier sponsor.
Pre-roll:
The pre-roll comes before the show starts. It is typically shorter (30 seconds) and costs less than a mid-roll spot. You risk new listeners passing on your podcast if the pre-roll is too long or seems too commercialized. This is a great spot for a sponsor that fits the theme and values of the podcast.
Mid-roll:
The mid-roll is placed in the middle of the show and is typically 2-3 times longer than pre-roll or post-roll. Advertisers pay the most for these spots because at this point, listeners are more invested in the episode and more likely to listen and trust it. It’s important to break from the episode at a spot where listeners will want to keep listening (A cliffhanger or previewing the next section). Some longer podcasts will have 2 mid-roll spots.
Post-roll:
The post-roll reaches the most dedicated listeners and is good for reinforcement of previous ads. Because it takes place after the episode, it is the cheapest spot.
How much should I charge?
The rate of an ad spot is determined by length and CPM (cost per ‘mile’ or 1,000 listeners). Here are the most current rates (According to Advertise Cast)
What are Best Practices?
A Typical Ad Spot:
Ad spots are usually a live read, meaning the host just reads the content provided during the show. This method is not as invasive as a typical commercial and listeners are more likely to listen to it because they trust the host’s voice.
Be Efficient:
Save each ad spot just in case that advertiser wants to use you again. Advertisers typically use the same copy for a length of time, meaning you can often re-use your pre-recorded ad.
Aligned Values:
Listeners understand that podcasts need to pay the bills; but the more an advertiser is aligned with the podcast’s theme and values, the less invasive the ad will feel. (Example: Gatorade advertising on a sports podcast).
Be Authentic:
Listeners can usually tell if the host actually believes in a product or company. Too many ad spots that lack authenticity can start to destroy trust. Telling personal experiences is a good way to keep things real.
Impress the Sponsor/Advertiser:
Most sponsors/advertisers will request a copy of their ad spot to determine if they want to go with your podcast again. The ad spot should sound authentic, match any content provided, and have zero mistakes.
Be Creative:
Using music or an interesting read can go a long way in impressing sponsors/advertisers and make listeners not mind that they are listening to an ad.
Fill the Space:
Have your own advertisements for your own products and events ready if a spot is not filled when an episode is released. You can also partner with other similar podcasts to cross promote to each other's audiences.
What are next steps?
Work with Studio D:
Taking the next steps takes time and experience. There are many companies that offer their services, but will take up to 50% of your revenue. Working with Studio D, you can expect a devoted and savvy team available to work through this process with you, without giving up half of the revenue.
Outline your Brand:
Before pursuing any sponsors or advertisers, it is important to think through what your brand is, it’s values, and what it’s worth.
Collect the Data:
You believe in your podcast, your listeners believe in your podcast, but how can you convince sponsors and advertisers to believe in your podcast? You must collect and organize data like the following examples:
Total Downloads
Downloads per Episode
Average length of Episodes
Projected Growth
Listener Location
Average Consumption Rate
Create your Pitch:
Using the information you created in the previous two steps, it’s time to develop a pitch. You must simplify the data and help the sponsor or advertiser reach the right conclusions.
Develop a Passive Strategy:
Let sponsors and advertisers come to you by integrating your pitch into the podcast, your website, and social media channels.
Develop an Active Strategy:
Pursue sponsors and long term advertisers that you believe will be a good fit with your podcast. This can be time consuming; but if you focus on retaining these sponsors and advertisers, the work gets easier over time.
Need Professional Help? Check out our Growth Services.