This agreement benefits both parties and is a great way to generate income for your podcast.
When you first set out to create your podcast, you may not have had generating income in mind as your goal. However, with the amount of time and effort you put into your show, you may now be considering monetising it. There are numerous methods to earn money from your podcast, yet one of the most effective approaches is to find podcast sponsorship.
By collaborating with brand partners to agree on a podcast sponsorship agreement, you can generate a steady stream of income for your podcast, while the brand benefits from the podcast advertising directly to your dedicated and engaged audience.
If you're planning to get podcast sponsors, it's essential to have a good understanding of the various ways you can collaborate with brands for a podcast sponsorship deal. Familiarising yourself with different pricing models, ad placements, and advertising styles can be immensely helpful when negotiating a sponsorship agreement with brand partners.
When podcasters team up with brands who wish to advertise on their podcast show, it is often using one of the following pricing models:
1. Cost per mille (CPM): This stands for cost per thousand impressions/listens. This option is for when your podcast has gained a large following and its listenership and podcast episode downloads are in the thousands. You can easily find how many downloads your podcast episodes are getting through podcast apps such as Spotify, Apple Podcasts and Google Podcasts.
2. Cost per Acquisition (CPA): This payment model is based on how many of your podcast listeners actually purchase the brand’s product or service. Tracking this can be done by using a discount code or affiliate links. If you have an engaged audience who will take your advice on purchasing goods or services, then this is a great choice for you.
3. Value-based flat rate: The other option is to establish a fixed fee that satisfies both you and your podcast sponsor. Even if your podcast doesn't have a substantial listener base yet, you can still offer potential podcast sponsors immense value by promoting their product or service to your devoted and targeted audience. Podcast listeners are highly engaged and therefore a valuable asset to brands. You can pitch the advantages of collaborating with your podcast to potential sponsors by showing them how your audience is perfect for the brand’s niche or how dedicated your listeners are to your show.
In general, the size of your audience will be the decisive factor in determining your approach to pricing when getting podcast sponsors.
Potential sponsors can be presented with three different podcast advertising placement options to choose from: pre-roll, mid-roll, and post-roll.
1. Pre-roll ads: These are advertisements at the start of the show. They are the briefest to help keep the audience tuned in. Lengthy podcast ads at the beginning of an episode can deter listeners from listening to the rest of the episode and listeners may not be fully engaged yet at this stage of the episode which limits the effectiveness of the podcast ads.
2. Mid-roll ads: These types of advertisements are located in the middle of a podcast once the audience is already fully engaged. These podcast ads are considered to be the most valuable for sponsors as your audience are already listening intently. Listeners are least likely to cease listening at this stage as they are invested in hearing the rest of the podcast episode. This ad placement will earn you the most money for monetising your podcast episodes.
3. Post-roll ads: These ads are included at the end of the podcast episode. They are not seen as having as much value as other ad placements since listeners may not make it to that point in the podcast, or they may choose to end their listening experience when the content comes to an end and the advertisement begins.
Advertising a brand on a podcast usually comes in one of three styles. The podcast sponsor will usually decide themselves which style they want to use.
1. Host-read ads: With this style of podcast advertising, the podcast host shares a genuine review about the brand's product or service. They can explain how they use it and highlight the reasons why the audience should give the product/service a try. Such advertisements are seen as authentic and deemed highly credible, thus having a significant impact on the listeners, compelling them to try the brand too.
2. Radio-style ads: A pre-recorded commercial from a third party can be aired during the episode without the need for the podcast host to personally speak about the brand. This often requires the least amount of effort and planning as the brand can send their pre-existing advertising recording for you to include in your episode during the editing stage. The podcast host does not need to record anything themselves.
3. Brand Interview: Instead of running typical ads, brands have the option to participate in guest interviews on your podcast show. Doing so allows them to have more air time to share their brand's story, products, services, and achievements with your listeners. This approach can be a highly effective form of podcast advertising, as it blends air time with a natural conversation about the brand. However, the success of this approach depends on the brand being a good fit for your podcast’s themes and your audience's interests. Your listeners will not be interested in an entire episode of conversation on a topic completely unrelated to your usual content.
Now that you have an understanding of the various ways you can collaborate with podcast sponsors, you can now start to get podcast sponsors to work with.
Approaching brands and pitching to them directly may be a laborious task, but it is worth the effort and time. It is the best way to find brands whom you share a target audience with and with whom your values align. Additionally, this approach will also allow you to potentially increase your revenue from the partnership, since you won't be splitting your revenue with any third parties.
The best place to start is to identify potential brand partners you would like to collaborate with.
Now that you have a list of potential podcast sponsors you would like to collaborate with, you need to decide how you are going to pitch the sponsorship deal to them.
You need to sell the idea of the podcast sponsorship deal to them. Explain to potential partners all of the advantages of working with you and partnering with your podcast show. Make sure to be specific about what those benefits are.
When you approach brands for partnerships, you need to be prepared for possible rejection as not everyone you contact will be interested in collaborating with you. However, don't let this discourage you and keep persisting. Remember that your audience is an asset that these brands can benefit from, so there will be brands who see the value in this and will be interested in working with you.
Another method for securing podcast sponsorship work is to join a Podcast Network. This middleman service eliminates the need for approaching brands directly to propose your podcast, as they will approach brands for you, saving you a lot of time and effort. Potential sponsors are exposed to your content on the Network. Consequently, brands can reach out to you to negotiate sponsorship deals.
If you are short on time, outsourcing to a podcast network can be a great solution. However, this is usually only advisable when you have a larger audience and are bringing in more money from your podcast, as the podcast network will take a portion of your revenue.
A Podcast Ad Marketplace is another great option for securing brand sponsorships for your podcast. A podcast ad marketplace is where brands that are actively seeking to advertise on a podcast can discover your podcast show. This approach saves you the hassle of cold pitching to brands that may not be interested in sponsoring a podcast, no matter how impressive your pitch is. However, note that the Ad Marketplace will charge a commission, so you should factor in this cost when considering your options.
Podcast sponsorships can be a great way to earn money for your podcast. However, it's important to keep in mind that accepting sponsorships deals involves contractual obligations that need to be fulfilled. As sponsors are paying for a service, it's crucial that you provide what they require and meet all expectations and agreements, while also keeping your audience engaged and entertained. There may be a required number of ads to include in each episode, but bear in mind that too many can frustrate your listeners. Therefore, it's important to carefully consider your choice of brand sponsors and agree upon terms in advance that work for both parties.