What’s the Average Podcast Sponsorship Cost?

Dear future/ up and coming podcasters, now that your podcast is receiving a few thousand listens every month, or you have created a niched podcast that has a few hundred passionate listeners, then it is finally time for you to get sponsored. But, how much can you expect to earn?

So, what’s the average cost of sponsorship for podcasts?

The average cost of a sponsorship for a podcast depends on how many listens your receive or how niched your podcast is. Of course, the budget of the company that is sponsoring also plays a role in this. Typically, the CPM ( cost per thousand listens) ranges between twenty and twenty-five dollars (20- 25 dollars).

To know exactly how much you can expect to earn if you are receiving 4 thousand listens per episode per month, and you are interested in learning about the different pricing models that are often used in the podcasting world, then continue reading this blog post.

What’s the average podcast sponsorship cost?

To understand how the cost of sponsorships is calculated, we have to learn about the pricing models that are often used in the podcasting world. So, what are these pricing models that I am referring to?

What's the Average Podcast Sponsorship Cost- money

Three of the pricing models that are commonly used for podcast sponsorship are the following:

  1. Negotiating a price with the sponsor
  2. Cost per Mille (CPM)
  3. Cost per acquisition (CPA)

Pricing model number one: Negotiating a price with the sponsor

This is a great pricing model for new podcasters who run niched podcasts that have a passionate and highly engaged audience, even if they are only five hundred people!

Why?

The two other pricing models that I will be discussing in a minute, cost per mille (CPM) and cost per acquisition (CPA), are usually great for podcasts that receive many thousands of listens, especially the cost per mille (CPM) model.

Without the thousands of listens, the podcaster would not be able to make much money. That is why negotiating a flat fee of two hundred dollars(200 dollars), for example, is a much better deal for them.

So, if you run a niched podcast and you have a few hundred people who are always engaging with your content, go for this pricing model.

Pricing model number two: Cost per Mille (CPM)

The cost per mille (CPM) model means that the podcaster gets paid a specific amount of money that is set by the sponsor for every one thousand mille or one thousand listen the sponsored episode gets during the first thirty days of its publication date. 

Pricing model number three: Cost per Acquisition (CPA)

The cost per acquisition (CPA) model means that the podcast gets paid a specific amount of money or a specific percentage that is set by the sponsor for every acquired customer. A great example of this pricing model would be affiliate links and affiliate sponsorships. 

How much can you expect to make from your podcast with sponsorships?

Another thing that plays a role in how much a sponsorship cost is where the ad is placed. Ads can be placed in three different slots during the episode.

It can be played at the beginning of an episode, at the end of an episode, or somewhere in between.

What's the Average Podcast Sponsorship Cost- podcast audio recording

Thus, we can conclude that the three ad slots in podcast sponsorships are:

  1. Pre-Roll:
  2. Post-Roll
  3. Mid-Roll 

The Pre-roll ad slot

From its name, the pre-roll ad slot is the slot that takes place at the beginning of an episode. It is considered to be the most popular ad slot in the podcasting world.

The Post-roll ad slot

From its name, the post-roll ad slot is the slot that takes place at the end of an episode.

This ad slot has a duration that ranges between fifteen and thirty seconds ( 15- 30 seconds). Usually, it is utilized as the last call to action. Because it is the least preferred ad slot, it is the cheapest one.

The Mid-roll ad slot

From its name, the mid-roll ad slot is the slot that takes place sometime during the episode. This is considered to be the most effective ad slot, mostly because of flexibility. This flexibility allows the podcaster to incorporate the ad into the episode more organically.

This makes the mid-roll ad slot the most desired one, and thus the most expensive ad slot.

What is the industry standard cost for podcast sponsorships?

Currently, the Industry Standard costs for podcast sponsorships is a package that consists of the pre-roll ad slot; as well as, the mid-roll ad slot.

What's the Average Podcast Sponsorship Cost- Industry standards

The pre-roll ad slot is usually fifteen seconds long ( 15 sec), while the mid-roll ad slot is about sixty seconds long ( 60 sec). 

Here are the payment rates according to the Industry Standard for Podcast Sponsorships:

  • On average, a fifteen-second ( 15 sec) pre-roll usually has a cost per thousand mille or cost per thousand (CPM) of eighteen dollars (18 dollars).
  • On average, a thirty-second ( 30 sec) post-roll usually has a cost per thousand mille or cost per thousand (CPM) of ten dollars (10 dollars).
  • On average, a sixty-second mid-roll usually has a cost per thousand mille or cost per thousand (CPM) of twenty-five dollars (25 dollars).

To calculate the cost of a podcast sponsorship, let us assume that your podcast gets about three thousand (6K) listens per episode within the first thirty days of its publication.

This means that you will be making around two hundred and fifty-eight dollars ( 258 dollars) per episode according to the Industry Standard fora podcast sponsorship package.

Here is the breakdown of that sponsorship cost:

18 x 6 (because you are getting six thousand “6K” listens): So, you will get one hundred and eight dollars “108 dollars” for the pre-roll ad slot.

25 x6 (because you are getting six thousand “6K” listens): So, you will get one hundred and fifty dollars “150 dollars” for the mid-roll ad slot.

If you get two sponsors for your podcast, then you will easily be able to double your revenue for each sponsored episode you upload. If you can manage to do that, you will be able to earn about five hundred and sixteen dollars “516 dollars” per episode.

This is not the amount of money that you could quit your nine to five four, but it is considered to be a decent part-time job. Besides, the more you upload, and the more your audience grows, the more money you will be able to make.

Do you want to double or quadruple your monthly revenue? If your answer is yes, then just upload more episodes every month. However, do not let the number of episodes needed for a better revenue affect your podcast’s content and production quality.

Assuming that you are getting two different sponsors for every episode, let us see how much money you can make if you upload two or four episodes per month instead of just three.

  • If you can upload two episodes per month, then you can make about one thousand and thirty-two dollars (1032 dollars).
  • If you can make four episodes per month, then you can earn a total of two thousand and sixty-four dollars (2064 dollars).

Kindly note that these cost per mille or cost per thousand (CPM) numbers are just the Industry Standard for podcast sponsorships, which means that some podcasters have a higher or lower cost per mille (CPMS).

P.S: Some of the big podcasters have a cost per mille or cost per thousand (CPM) of one hundred dollars ($100)!!

Other questions related to What’s the average cost of sponsorship for a podcast

How Do Podcasts Make Money?

Podcasters can make money in multiple ways. Five ways that you can use to monetize your podcast include the following:

  1. Selling merch
  2. Starting a Patreon page
  3. Getting their podcast sponsored
  4. Using Affiliate links
  5. Selling your own services or products

To read about the five different ways that you can use to monetize your podcast, make sure you read myHow Do Podcasts Make Money blog post.

What platforms can I use to diversify my podcast’s revenue?

A few popular platforms that you can use to diversify your podcast’s revenue include the following:

  1. YouTube
  2. Patreon
  3. Stitcher
  4. Spreaker
  5. Spotify

How can I monetize my podcast?

There are a variety of ways to monetize a podcast, and the most popular one is by getting sponsored. Two of the major models are the cost per mille (CPM), which means cost per millie or thousand listens, and cost per acquisition (CPA).

What’s the average CPM of a podcast vs. a YouTube channel?

The average cost per mille or cost per thousand listens (CPM ) of podcasts ranges between eighteen and twenty-five dollars ( $18-$25). The average cost per mille or cost per thousand monetized views (CPM) of a YouTube channel ranges between twenty-five cents and four dollars ($0.25-$4).

That’s it for today’s post. You should now know how much you can expect to make from a sponsorship. If you have any questions related to how much you can expect to make from a sponsorship, feel free to email me at podcastingdiaries@gmail.com.

Which company was the first to sponsor your podcast? Do you remember how much money you made from it? If you want to share your answers with us, email me at podcastingdiaries@gmail.com, and I will mention your response in one of my upcoming blog posts.

My Sources

Till next time,

Ayah

Ayah Assem

I am a creator and a consumer of many forms of artistic content. With podcasting leaving its mark and declaring its significance in the current content world, I have decided to learn everything related to how to create a podcast. Who knows, maybe in the near future I will start uploading and sharing my creative work in the audio format. Join me on my journey of understanding the podcasting world, as I will be sharing with you all of the information that I am going to learn. Feel free to share with me your podcasting journey at podcastingdiaries@gmail.com and keep an eye on all of the music, books, podcasts, movies, tv shows, and YouTube channels that I always reference.

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