How Much Do Podcasts Make From Ads?

Many people want to know the amount of money they can make on a podcast each month or even each week. This article will demystify the process of making money with this format and help you figure out how much you can make with it. Read further for details.

Economic Statistics

Podcasting is big business as long as you treat it as such. Gone are the days in 2005 when this medium was only for niche internet users focused on music and computer-related topics. Now, everyone is interested in podcasts, and not just for news. They include fictional stories and real true crime events.

This medium has been growing rapidly over the past five years. In 2015, ad revenue was estimated at $105.7 million for podcasters. Last year, this number grew to $678.7 million and it's expected to keep growing. It seems that the only way for ad revenue to go with this format is up, and it's best to catch on to this trend as early as possible.

IAB FY 2018 Podcast Ad Revenue Study: A Detailed Analysis of the US Podcast Advertising Industry. Prepared by PwC

It's easy to understand that millennials make up the biggest category for podcast listeners. They are the ones that use the latest technology, and this medium is no exception. In fact, one-third of millennials listen to audio podcasts on a regular basis. Even more in this category listen to them at least once a month.

With all that being said, know that you won't see any of this money by just posting your show and seeing what happens. Success requires continuous effort and investment in your work. It's an uphill battle because most podcasts don't make any money. Try not to be the average statistic.

Finding the Money

AdSense makes money because advertisers are willing to pay Google for every ad that is clicked on. Google, in turn, pays its advertisers. Advertisers can buy space on a podcast or in the sidebar or at the top of the page. This can be done with the website you host the podcast on and the  AdSense rates ‌  will apply based on your amount of visitors, which can be increased by application the International SEO best practices to your podcast website.

The podcasts themselves choose what ads to display on their pages and they don't have to share their information with Google. The amount of money that advertisers pay for a podcast depends on what kind of ads they want to use. There are ads for news, entertainment, and even music.

There are also ads for sponsors who want their brand to be associated with a podcast. Sponsorships cost money and the advertisers pay them. The sponsors of the podcasts then sell the ads to people and brands willing to display them.

Sponsors and advertisers both have to take into consideration that some podcast listeners may not want to hear the ads. This is just something you can't get around because you can't please everyone, especially when you're running an online business.

More Business Tips

When getting started, experts recommend that you look for advertisers and sponsors separately and see how much of their advertising budget they allocate to your podcast. That way, you can compare the amount they spend for each podcast to the amount you spend on your podcast.

Podcasts that discuss politics and religion often use very large-sized ads, while educational podcasts may only have one or two ads at a time. If you are looking at how much do podcasts make from ads, then you should compare the size of the ads with the size of the podcast.

Ads come in many shapes and sizes. Some advertisers only pay for the size of the ad, others pay by percentage, and still, others will only pay by views. It's up to you to determine what exactly you want for your show.

Some podcasts offer ads that are only for a specific time frame that allows viewers to view the ad before it disappears and some podcasts allow the ads to run forever. Advertisers pay a fixed fee per ad, but many podcasts do charge the advertisers by the minute or per hour or per day. This gives you an idea of how much do podcasts make from ads if you are only interested in the length of the ad.

In Conclusion

When you have a look at how much do podcasts make from ads, don't forget to compare the number of advertising expenses to the amount of time that the ads are shown.

With experience, you can get a better idea of what the best deal you can get to make the most money with your podcast, and go to the top of How Much Do You Get Paid for a Podcast after optimizing your sources of income.

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