How to Make Money from Podcasts Through Sponsorship
Today, there are two major differences in how podcasts make money. When you put them all together, you get a steady revenue stream that can help you make money podcasting.
Download the first chapter of The Storytelling Series: Beginners’ Guide for Small Businesses & Content Creators by Obehi Ewanfoh.
What is Podcasts Sponsorship
Podcast sponsorship refers to the practice of a company or individual paying a fee to advertise their products or services on a podcast. The sponsor typically provides a brief advertisement or message that is read aloud by the podcast host or another presenter during the show.
Podcast sponsorships are a popular way for businesses to reach a specific target audience, as podcasts often have dedicated and engaged listeners. Sponsors can choose to sponsor an entire podcast or a specific segment, and the length of the sponsorship can vary.
In exchange for their sponsorship, companies can receive a variety of benefits such as increased brand awareness, improved sales and customer engagement, and the opportunity to build relationships with podcast hosts and their audiences. Podcast sponsorships can be a cost-effective marketing strategy for companies of all sizes, and they are becoming increasingly popular as the podcast industry continues to grow.
Direct monetization strategies are the ones that are currently the most popular. When you sell the show directly, you’re doing direct podcast monetization. You can make money by creating original content, repurposing it, and granting paid members exclusive access.
Indirect podcast monetization, on the other hand, is a viable option. This is when you use your podcast to market other products. Your podcast becomes a vehicle for promoting products and generating demand among your audience.
Sponsorships are also important for monetizing your podcast. We’ll go over how to make money from podcasting through sponsorship in this article.
Monetizing A Podcast Directly Through Sponsorship
The most common way to monetize a podcast is through sponsorship. It’s also the simplest because you don’t have to create or sell anything to accept donations. All you have to do now is work out a deal with a sponsor.
“This episode is brought to you by [some company],” you’ve probably heard podcasters say at the beginning or end of their show. If you are looking for a…” I’m sure you get the picture.
Sponsorships pay out more based on the number of people who listen to your show. Your revenue will rise as the number of people who listen to you grows. However, if you don’t have a large audience, this is a difficult way to make money.
In general, “pre-roll” and “mid-roll” mentions can be charged. Pay more if you sit in the middle of the row (during your episode). If you’re comfortable, promote the sponsor at both points.
Here are a few options to look for sponsorship opportunities for your podcast:
- AdvertiseCast
- Native Media at its Finest
- Midroll
- Media for Ad Results
- Media for Adopters
Why Podcast Sponsorship?
People have different motivations for podcasting and for monetizing their content, just as they do for podcasting. The idea of covering their web and hosting costs is enough for one podcaster. Maybe even enough to treat their other half to a nice meal once in a while.
Another possibility is that it’s a significant source of revenue for their company, with them paying a team of freelancers and assistants to work on their show.
In the end, podcast sponsorship is just a variation on the age-old marketing strategy of having someone gather a crowd and then advertising a product or service to that crowd.
Some top high paying examples of Podcasts Sponsorship
Podcast sponsorships can range in price depending on a variety of factors, such as the size and engagement of the podcast’s audience, the length and frequency of the sponsorship, and the type of advertisement being used. Some of the highest paid podcast sponsorships include:
- “The Joe Rogan Experience”: Joe Rogan’s podcast is one of the most popular in the world, and he has secured high-paying sponsorships from companies such as Cash App, ExpressVPN, and Squarespace.
- “My Favorite Murder”: This true crime podcast has a large and devoted fan base, and has secured sponsorships from companies such as Madison Reed, Care/of, and Audible.
- “The Tim Ferriss Show”: Tim Ferriss’ podcast is focused on self-improvement and has secured sponsorships from companies such as Four Sigmatic, LinkedIn, and MasterClass.
- “Radiolab”: This science and culture podcast has secured sponsorships from companies such as Audible, Blue Apron, and Squarespace.
- “Serial”: This investigative journalism podcast has secured sponsorships from companies such as Mailchimp, Squarespace, and SimpliSafe.
It’s worth noting that while these are some of the highest paid podcast sponsorships, there are many other podcasts with smaller audiences that can also secure lucrative sponsorships. Ultimately, the price of a podcast sponsorship will depend on the specific circumstances of the podcast and the advertiser.
How Does Sponsorship in Podcasts Work?
The advertiser pays to have their product or service promoted on one or more podcast episodes at the most basic level. Ads are typically delivered in one of two ways on podcasts.
Ads in the “Radio Style”
Advertisements can also be created by a third party. This way, all the podcaster has to do is include them in their episodes. This is ineffective because the audience is listening to hear the presenter’s thoughts and opinions.
It can be jarring and even annoying to have a random Voice-Over interrupt the content to quickly give you a sales pitch. Listeners can fast-forward as soon as the cadence or background sound changes.
Advertisement Placement
An advertisement may appear at the start of an episode, at the end of an episode, or somewhere in between. These slots are referred to as:
- Before the content begins, there is a pre-roll.
- During the main content of the episode, there is a mid-roll.
- After the content has finished, there is a post-roll.
The most desired position is in the middle of the roll (and thus, the most expensive). This content is less likely to be skipped by listeners. The least ideal position for an ad is post-roll, but it is also the cheapest.
Ads that are ‘Read by the Host’
The most efficient method is for the host to discuss the product or service. They’ll usually explain why they recommend it, giving examples of how they use it, how they benefit from it, and why the listener would benefit from it as well.
A well-done and legit host-read ad can sound like an extension of the episode’s content rather than an interruption.
Conclusion based on How to Make Money from Podcasts Through Sponsorship
In conclusion, podcast sponsorships are a powerful way for content creators to monetize their work and for businesses to reach engaged and targeted audiences. By building a loyal and engaged listenership, podcasters can attract a variety of sponsors and advertisers, and develop ongoing relationships that benefit both parties.
However, it’s important to approach sponsorships strategically and thoughtfully, in order to maintain the trust and interest of your audience while also delivering value to your sponsors. Whether you’re a podcaster looking to monetize your show or a business looking to invest in the medium, there’s no doubt that podcast sponsorships are a powerful tool for building brand awareness and achieving business goals.
As the podcast industry continues to grow and evolve, there are more opportunities than ever to make money through sponsorship, and to create compelling content that resonates with audiences around the world.
Download the first chapter of The Storytelling Series: Beginners’ Guide for Small Businesses & Content Creators by Obehi Ewanfoh.
