How Podcast Sponsors Work

Podcast sponsorships provide a lucrative opportunity for creators to monetize their content and generate income. Understanding how podcast sponsors work is essential for podcasters seeking to attract sponsors and establish successful partnerships. This article explores different sponsorship models, types of advertisements, ad placement, and methods of finding sponsors.

Sponsorship Models

There are various models for podcast sponsorships, each with its own approach to compensation and metrics. These models include affiliate sponsorships, cost per mille (CPM) sponsorships, and value-based sponsorships.

Affiliate Sponsorship

In the affiliate sponsorship model, podcasters earn income based on the number of new customers they generate for the sponsor. This is typically accomplished by providing listeners with a promo code or special URL, allowing the sponsor to track the sales originating from the podcast. Podcasters receive a portion of each sale made by their listeners using the provided promotional tools.

CPM Sponsorship

CPM sponsorship is based on the number of downloads a podcast episode receives. Podcasters are paid a predetermined amount per thousand downloads. The industry-standard rate for CPM sponsorships typically falls within the range of $18-25 per thousand downloads. Advertisers value the reach and influence of podcasts, making CPM sponsorships an attractive option for both parties.

Value-Based Sponsorship

Value-based sponsorships allow podcasts to negotiate a flat rate with sponsors, regardless of download metrics. This type of sponsorship focuses on the value that the podcast creates for the sponsor, such as brand alignment, audience engagement, and the specific benefits the podcast offers. Value-based sponsorships are often tailored to the unique strengths and characteristics of the podcast and its audience.

Types of Advertisements

Podcast sponsorships typically involve two primary types of advertisements: host-read ads and dynamically inserted ads.

Host-Read Ads

Host-read ads are scripted advertisements that are read by the podcast host during the episode. These ads are seamlessly integrated into the content and delivered in the host’s own voice, creating a more authentic and engaging experience for the listener. Host-read ads are often well-received by audiences and can be highly effective in driving conversions.

Dynamically Inserted Ads

Dynamically inserted ads are advertisements that can be dynamically switched out based on the listener’s location or the time they listen to the episode. These ads can be tailored to specific demographics or targeted based on the listener’s preferences. Dynamically inserted ads provide flexibility and allow sponsors to customize their ad placements to maximize their reach and impact.

Ad Placement

Podcast ads can be placed at three different points within an episode: pre-roll, mid-roll, and post-roll.

Pre-Roll Ads

Pre-roll ads are placed at the beginning of an episode, before the main content starts. These ads capture the listener’s attention right from the start but may face some resistance as listeners are eager to get to the core content. Pre-roll ads are typically priced based on their prime position and the anticipation of the audience.

Mid-Roll Ads



Mid-roll ads are inserted during the main content of the episode, often at a natural break or transition point. These ads benefit from the listener’s engagement with the episode and are less likely to be skipped. Mid-roll ads are considered highly effective and are generally priced at a premium due to their optimal placement.

Post-Roll Ads

Post-roll ads are placed at the end of an episode, after the main content concludes. While these ads may have a smaller audience reach compared to pre-roll and mid-roll ads, they are typically priced lower. Post-roll ads may be a suitable option for advertisers with budget constraints or for podcasters seeking to provide additional exposure to sponsors.

Finding Sponsors

Podcasters have several avenues to find sponsors and establish partnerships.

Podcast Networks

Joining podcast networks can connect podcasters with potential sponsors. These networks act as intermediaries, matching podcasts with sponsors based on their target audience and niche. Podcast networks often have established relationships with advertisers and can provide valuable opportunities for podcasters to secure sponsorships.

Direct Outreach



Podcasters can reach out directly to potential sponsors who align with their content and target audience. This approach requires research and understanding of the sponsor’s products or services to create a compelling pitch tailored to their needs. Personalized outreach can be effective in building direct relationships with sponsors and negotiating mutually beneficial agreements.

Online Platforms

Platforms like Acast provide a marketplace for podcasters to make themselves available to sponsors. These platforms allow podcasters to showcase their content, audience demographics, and sponsorship opportunities. Sponsors can browse through the platform and connect with podcasters who align with their marketing objectivesand target audience.

FAQs

How Podcast Sponsors Work

What are the different models for podcast sponsorships?

There are three main models for podcast sponsorships: affiliate sponsorships, CPM sponsorships, and value-based sponsorships.

How do affiliate sponsorships work?

In an affiliate sponsorship model, podcasters are paid based on the number of new customers they generate for the sponsor. Podcasters earn a portion of each sale made by their listeners using a promo code or special URL provided by the sponsor.

What is a CPM sponsorship?



CPM stands for “cost per mille” or cost per thousand downloads. In a CPM sponsorship model, podcasters are paid based on the number of downloads their episodes receive. The industry-standard rate for CPM sponsorships is typically between $18-25 per thousand downloads.

What is a value-based sponsorship?

A value-based sponsorship is a type of sponsorship where podcasters negotiate a flat rate with sponsors, regardless of download metrics. This type of sponsorship focuses on the value the podcast creates for the sponsor, such as brand alignment and audience engagement.

What types of advertisements are commonly used in podcast sponsorships?



Podcast sponsorships usually involve host-read ads, where the podcast host reads a scripted ad during the episode. There are also dynamically inserted ads that can be switched out based on the listener’s location or when they listen to the episode.

Where can ads be placed within a podcast episode?

Ads can be placed in three portions of the episode: pre-roll (at the beginning), mid-roll (in the middle), and post-roll (at the end). The rates for each type of ad placement may vary.

How can podcasters find sponsors?

Podcasters can find sponsors by joining podcast networks, reaching out to potential sponsors directly, or using online platforms that connect podcasters with sponsors.

What are the benefits of joining a podcast network?

Joining a podcast network can provide podcasters with access to a network of potential sponsors, as well as support and guidance in securing sponsorships. Networks often have established relationships with advertisers, making it easier for podcasters to find suitable sponsors.