Podcasting: Setting Up Ad Pricing Without Undervaluing The Brand

Podcasting advertisement analysis

Podcasting: Setting Up Ad Pricing Without Undervaluing The Brand

Podcasting is now known to three-quarters of all American adults aged 12 and above. More than one in three has listened to it in the last month, with one in every five doing so in the last week. That’s a significant number of frequent listeners. This advertising channel has provided excellent outcomes, such as boosting brand recognition and driving sales. More than 50% of podcast listeners believe they are more likely to purchase a product promoted on a podcast than they are on a traditional show. As shown by this statistic, podcast advertising is miles ahead of conventional types of digital advertising.

How can you set up ad pricing for your platform without undervaluing your brand?

While there are no hard and fast regulations, podcasting advertisements are usually aired at the beginning or middle or even at the end of a program. Still, since most listeners are likely to have tuned out before hearing them, they are considerably less popular with marketers. So, what about those advertising spaces that marketers would want to appear in? What’s the procedure for using them? Let’s discuss about them!

Price Of Podcast Advertising

Before going towards the price of podcasting advertisements, you should know about the duration of different types of advertisements in podcasts. Pre-roll advertisements appear at the beginning of a podcast and run for a maximum of 15 seconds. Mid-roll advertisements are aired in the middle of the program. And, are considerably longer than pre-roll ads – typically about 60 seconds.

As you would expect, mid-roll advertisements demand a greater price than those that appear at the beginning of the program. That’s because they are longer, but it is also because listeners tend to be more engaged at this stage. When the program initially begins, people may be settling into whatever activity they want to engage in while listening to the podcast, or they may choose to skip through the first few minutes to get to the show’s content.

According to podcaster John Lee Dumas, although every podcast is different and rates are nearly always negotiable, typical industry pricing for podcast advertising is as follows:

For a 15-second pre-rolls advertisement, the cost per 1000 CPMs is $18. 60-second mid-rolls costs $25 every 1000 CPMs. So, what does this imply in terms of the actual amount you’ll be required to pay?

A podcast with 10,000 subscribers will cost you the following:

  • A pre-roll advertisement costs $180.
  • A mid-roll advertisement costs $250.


How Podcasting Advertisement Is Cheaper?

You may disagree, but for some, it seems to be an absurdly low price when considering the caliber of the audience you are attempting to attract. With a Facebook or Instagram ad, you can certainly get in front of many more people for your money, but the results aren’t quite as effective. The cost per thousand impressions (CPM) of social advertising may seem remarkable, but that is all it is. Almost half of the customers admit to just skimming through social media advertisements. Marketing expenditure on social media advertising, on the other hand, has increased more than ever, with social ad spending reaching more than $84 billion in 2019.

To be clear, this doesn’t imply that social advertising is unworthy of consideration (it still offers excellent value for money). Still, the quality of those impressions will be much lower, and as a consequence, you will most likely see a lesser return on your investment.

Now $25 per 1000 listeners for mid-roll advertisements is a lucrative ad pricing. Of course, you can charge more if your podcast is very popular, but still, somewhere $20-25 per 1000 listeners for mid-roll advertisements is a really good price without undervaluing your podcast.

Most podcasts need a significant amount of time to build a following and attract sponsors. There are three main factors to determine the amount of money you make from podcast advertising.

  • The episode cost per thousand impressions
  • The number of podcast episodes created every month
  • The number of episode downloads

It would help if you experimented with selling different-length ads at various points during your podcast after you begin working with advertisers to determine the most successful combination for your podcast.

Alternatives To Podcast Advertising

There are many ways to earn money from podcasting, in fact, even if you have a small following. For instance, through affiliate marketing, crowdfunding, monetizing expertise, premium subscriptions etc. 

Affiliate Marketing

Affiliate Marketing is a kind of marketing in which affiliates are compensated for referring customers to a company’s site. There are many affiliate marketing schemes that podcasters may take advantage of. One of these schemes is providing unique URL to products, from which the audience could receive a discount. It is the podcast’s revenue share when listeners make a purchase using the code provided.

Premium Subscriptions

While some podcasts do not include ads, some do so in exchange for a subscription fee. These podcaster provide their audience with uninterrupted premium material.


Using crowdfunding sites such as Patreon allows listeners to make donations while exchanging benefits like early access to episodes.

Merchandise Sales

With an engaged audience, podcasts with a devoted following may generate additional revenue via the sale of branded goods. And, of course, the provision of tickets to live performances and events.

Monetizing Expertise

An excellent method to show your knowledge in any area is by the use of podcasting services. Profit from your expertise by giving public speeches or developing an online course. As a podcast producer, you may also make money by assisting new podcasters in their first stages of development.


Advertising may be a significant source of income for your podcast. The first stage in obtaining sponsors is to devote your efforts to growing your following.

Make sure to set reasonable expectations for yourself; building an audience, earning their confidence, and recruiting advertising all require time and work on your part. Whenever you’re ready to seek sponsorship opportunities, you may join a marketplace via an advertising network.

It’s possible to make money even if you do not have a podcast, by selling ads for other programs, either on your own or via an advertising agency.

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