Knowing how to monetize a podcast is the key to creating profitable projects in the AV industry. In this episode of AV123, brought to you by Voice123, Kavan Braun, Director of Podcasts at Backyard Ventures, shares his expert insights on how do podcasts make money and the key trends in podcast monetization!
Listen to the full episode here:
What is podcast monetization?
Podcast monetization involves creating revenue from a podcast through sponsorships, ads, listener support, or other creative means. As the podcast industry becomes a powerful alternative to traditional radio, it’s even more important for podcasters to understand how to monetize a podcast. As Kavan explained, “Monetization is about turning a hobby into something you can earn revenue from. It’s about taking what you’re passionate about and making it sustainable.”
How do podcasts make money?
1. Host-read ads
Host-read ads remain the gold standard for podcast monetization. These ads feel personal and authentic, leveraging the trust hosts build with their audiences. “The bread and butter of podcasting is that host connection with the audience,” Kavan noted. “Host-read ads are the key in how to monetize a podcast because they’re personal and trusted.”
2. Affiliate marketing
Affiliate marketing is a practical entry point for smaller or niche podcasts. Podcasters promote products or services they love and earn a commission for each sale. For instance, Kavan described how a coffee podcast could partner with a similar brand to drive sales: “Reach out to brands you’re passionate about. It’s a way for smaller shows to monetize effectively.”
3. Subscription models
Subscription platforms like Patreon or Supercast allow podcasters to offer bonus content, ad-free episodes, or exclusive perks to loyal listeners. Once you’ve built a loyal podcast following, you can offer bonus content through subscription models.
How much money do podcasts make?
The earnings potential for podcasts varies based on audience size, the type of podcast, and your monetization strategy. Smaller shows often start with affiliate programs or listener donations, while larger shows can earn significant revenue from high-value sponsorships.
Kavan explained a few industry-standard rates: “The average CPM for host-read ads is around $23-$25, while programmatic ads are lower, at $15-$18.” Success in how to monetize a podcast depends more on engagement than listener numbers. “It’s not about impressions but building trust with your audience,” says Kavan.
When should you start podcast monetization?
Timing is everything in how to monetize a podcast. Monetizing too early can distract your audience, so focus on building an engaged community first. Braun advised, “Consistency is key. If you’re not consistently posting or engaging with your audience, it’s hard to monetize.” Monitor your engagement metrics like comments, reviews, and social media interactions.
Kavan also recommends testing the waters: “Start with one ad or an affiliate program to gauge your audience’s reaction. Make sure engagement levels remain stable before diving deeper into monetization.”
Final thoughts on how do podcasts make money
How to monetize a podcast is a unique strategy that blends engagement, advertising, and marketing to create a sustainable podcast strategy. When it comes to podcast advertising, you can enhance your production value with professional voice actors from Voice123 or use Voice123 Enterprise to manage your projects.
And don’t forget to subscribe to AV123 on your favorite podcast platform for the latest AV insights!
FAQs
A small audience can generate income through affiliate marketing or listener-supported platforms, and if you have at least 5,000 downloads per episode, you can get larger sponsorship deals from brands.
Smaller shows may earn a few hundred dollars monthly, and popular podcasts with larger audiences can earn even more through sponsorships and ads.
Podcasts can be monetized through sponsorships, host-read ads, affiliate marketing, listener-supported platforms like Patreon, and selling merchandise.
Spotify doesn’t pay podcasters directly for publishing content but offers monetization tools like ads and subscriptions through platforms like Spotify for Podcasters.