Podcast sponsorships represent one of the most common avenues for monetization in the podcasting realm. Essentially, it involves partnering with a third-party brand or company who agrees to sponsor your show in exchange for promotional opportunities. These promotions typically manifest as advertisements inserted into your episodes, either at the beginning, middle, or end. Today we will cover Everything you need to know on how to get podcast sponsors in a nutshell, presented by soundorp. Here’s what most of the podcasters fail to understand. And that is
Securing podcast sponsorships is the most established way to generate a financial return from the hours you spend creating, producing, and editing your show. That being said, saturating episodes with sales pitches is a mistake, as it’ll only result in disconnect, annoyance, disrupted episodes, and listener drop off.
This podcast mistake is easily avoidable, though. But you typically don’t need to worry about it if you stick to industry norms. Don’t over-do it, basically. Listeners actually pay attention to podcast ads, more than in other areas. In 2023, Acast discovered that 60% of listeners paid attention to the advertising that were included, and 25% listened intently to every ad in their preferred podcast. When you collaborate with sponsors, your show gains credibility.
Listeners trust their favorite shows to select reputable advertisers. In the UK, 48% of listeners trust podcast hosts more than hosts of other traditional media, such as radio or TV broadcasts. Sixty-two percent of these listeners have contemplated using a product or service after learning about it on a podcast. 72% of listeners visited an advertiser’s website after hearing a podcast ad. So keeping these in mind we will start our research.
Ensure these at the Beginning
Build Your Audience: The Foundation of Sponsorship
Before diving headfirst into sponsorships stuffs, it’s crucial to build a solid foundation: your audience. Therefore, focus on refining your podcasting skills, finding your rhythm, and steadily growing your audience over time.
Determine Your Sponsorship Readiness
Wondering when to start seeking sponsorships? A general rule of thumb is to aim for around 1000 downloads per episode before actively pursuing sponsorship deals. While earnings at this stage may be modest, it’s an excellent opportunity to dip your toes into the sponsorship waters and establish relationships with niche companies relevant to your audience.
things to know before you get podcast sponsors
Any expert advertiser will have certain questions for you before they begin writing cheques. It’s critical to have these responses prepared since this is what sponsors want to know:
1. advertising rate
Even if the possibility of making any money from your podcast excites you, you should not undervalue it. Remember that podcast sponsorship and advertising provide a fantastic opportunity for businesses, and you’ve already done the tough labor of building an audience. What you’re offering is quite valuable. If you want to attract sponsors for podcast episodes, they must know how much they will have to spend.
Rates are often computed using a CPM. That rate is often influenced by the size of your audience or who they are, making step 2 even more significant.
If you can prove that you have an audience of 500 CEOs, that’s a valuable proposition that you can successfully monetize. But just 500 nondescript listeners won’t cut it.
2. What are the demographics of your audience?
Who is your podcast’s audience? Is your target group made up of stay-at-home parents in their late forties or college-educated Chicagoans who enjoy basketball? Is it single women making more than $80,000 a year, or teenagers living at home? Knowing this is really useful in determining how to secure sponsors for your podcast.
Of course, depending on the material you provide, you may get a good notion of who your target audience is. However, podcast analytics provide valuable data. Your podcast hosting platform will offer basic information, However, we recommend reviewing your Spotify statistics dashboard for somewhat more comprehensive demographics, or doing a listener poll (maybe with a giveaway as an incentive) to have a better sense of who your listeners truly are.
3. Work on the pitch
Simply put, why would a brand advertise with you? A media kit can assist answer all of their frequent inquiries while also promoting podcast advertising in general. Some companies will be familiar with podcast ads, while others will not. As you begin to understand the places of friction, you may change your media kit accordingly.
A podcast trailer is an excellent method to present your podcast to both advertising and listeners, and you could even create a second, unlisted version just for advertisers to personalize your pitch.
Also, A well-rounded proposal comprises several key components that showcase your podcast’s value proposition and audience appeal. These include:
- Podcast name and cover art: Captivating visuals that represent your brand.
- About Me section: Introduce your podcast, hosts, season, and subject matter.
- Audience demographic: Provide insights into your listeners’ age, location, and gender.
- Social proof: Incorporate reviews, testimonials, or positive feedback from your audience.
- Contact information: Make it easy for sponsors to reach out to you or your team.
4. What’s in the inventory?
Podcast commercials are frequently divided into pre-roll, mid-roll, and post-roll segments. It’s a familiar format. The mid-roll is the most beneficial since listeners are already invested in the podcast at that time, whereas the post-roll is frequently less valuable because fewer people will listen all the way to the finish, and those who do can simply switch off the episode once the end-roll advertising begin. Pre-roll adverts are frequently the shortest, in order to keep listeners engaged. Native advertising is when you collaborate more closely with an advertiser to blend their brand with your brand of content. This often refers to host-read advertisements, but could also be a business podcast that interviews the founder of one of their sponsors as an episode.
How do Sponsorship Models work
While The industry standard is often revolving around CPM (Cost Per Mille) models, explore alternative payment structures based on the value you bring. There are various sponsorship models to consider. Each offers unique advantages and revenue potential.
Brands are realizing that ads are extremely effective on podcasts. In fact, a poll of highly engaged podcast listeners conducted by Edison Research found that not only do these listeners not mind hearing ads in their podcasts, but:
- 70% evaluated a new product or service after hearing a podcast ad.
- 44% had a more positive attitude toward firms that advertise on podcasts they regularly listen to.
- 37% believe podcasts are the greatest method for advertisers to contact them.
- 44% said they pay more attention to advertising on podcasts than other media.
So it seems to reason that podcast advertising would appeal to a wide range of companies. This puts you and your podcast in a terrific position; if you can demonstrate that you have a large enough audience, sponsors will likely view your program as a worthwhile investment.
Podcast sponsorship options include affiliate, cost per mille (CPM), and value-based sponsorships. We’ll look at each payment method separately below.
Affiliate Podcast Sponsorship
You are compensated under an affiliate model according to how many new consumers you bring in for that company. A percentage of every sale made by one of your listeners goes to you. Brands typically provide you with a promo code or unique URL to put in your advertisement so they can monitor which customers were sent to them by your show.
Affiliate commissions are often more than the CPM model since podcast hosts are only compensated after they bring in money for the business. Furthermore, you are not constrained by a certain ad schedule or mention threshold. You may talk about the product as much as suits your audience and style, as you get to choose when and how to promote it.
When it comes to affiliate programs, one thing to watch out for is whether your commissions are paid in cash or “store credit.” In order to approve you as an affiliate, the affiliate program can also have requirements related to the quantity of subscribers, website traffic, or social media followers you have. Make sure you do your homework to see whether the program’s requirements and payment structure will be a suitable fit before you take the time to pitch these programs.
The finest podcast hosts are those with highly engaged audiences or those whose listeners would heed your suggestions when making purchases.
CPM Model
Typically, companies negotiate based on a CPM model, offering a set amount per 1000 downloads per episode. That is, Advertisers pay based on every 1000 listens the ad receives, making it a straightforward metric for gauging ad performance.
For the CPM model, the industry-standard rate of compensation ranges from $18 to $25 for every thousand downloads. For instance, if your podcast sponsorship agreement is for $20 CPM and your episode is downloaded 15,000 times, you will receive $300 in total for that episode.
The download counts from your prior episodes will likely determine your starting CPM rate; however, you may always renegotiate the price the next time your advertising contract is due for renewal. In general, your chances of receiving a higher rate increase with the number of members you have.
You may also provide many ad slots for the same product in one episode of your program, or promote multiple products in each episode, if you want to optimize your earnings.
Value-Based Sponsorship
Occasionally, small to medium programs can instead negotiate a value-based sponsorship, which works similarly to the CPM model but pays a fixed amount instead of relying on the quantity of downloads. Regardless of download numbers, this kind of podcast sponsorship highlights the value the show brings to the sponsor.
Therefore, rather than getting paid $20 for every thousand downloads as in the previous example, you would bargain for a flat rate of $300 for the episode. The sponsor will probably agree to the flat rate regardless of the size of your audience if they think their confidence in you will generate a high return on investment.
Tips to Secure Podcast Sponsorships
In podcasting, monetization is crucial aspect and many content creators should aim to master it. One of the most sought-after avenues is securing sponsorships. We will talk about some valuable hacks on how to get sponsors for your podcast.
Research and Reach potential sponsors
The initial step in monetizing your podcast through sponsorships is to identify potential sponsors that resonate with your audience. Here are two effective approaches:
- Market Research: One easy way to find sponsors is to listen to other podcasts in your niche and approach the companies who sponsor them. Explore other podcasts within your niche to identify brands sponsoring similar shows. They may be open to your suggestion because they are currently spending money to attract that particular listening group. In the event that those businesses decline your offer to advertise, at least you’ll know more about the sorts of businesses you should target. Let’s take the scenario where you are the host of a personal finance podcast. Take a listen to a rival podcast and find out who funds it. You may try using a different budgeting tool if they’re supported by one, for example. You would want to mention in your proposal (more on this in a moment) that the possible sponsor’s rival sponsors podcasts, therefore they ought should as well.
- Leverage Existing Connections: Utilize your network and reach out to contacts who either own businesses or have marketing budgets. Establishing personal connections can significantly enhance sponsorship chances.
- Examine the adverts on blogs or websites in your niche.
- Look at businesses that place ads in trade publications.
- Examine companies that buy sponsored advertisements on social media.
- Keep an eye out for brand ambassadors that make posts in your virtual community or group.
- Look up popular terms in your field on Google and take a look at the sponsored listings.
- Find out what sorts of things your listeners enjoy and frequently purchase.
Leverage podcast ad marketplaces like Podbean
Integration: Integration with hosting platforms like Podbean simplifies the verification of statistics and facilitates sponsor management. With Podbean’s marketplace, brands can run pre-recorded ads on podcasts on podcasts big or small. Ads only play on podcasts hosted with Podbean.
Cast a Wide Net
Let me advice you a thing: cast your net wide. Don’t limit yourself to just a handful of high-profile guests. Instead, reach out to a diverse range of individuals, even if they’re not as well-known. Remember, it’s a numbers game. The more invitations you send out, the higher your chances of securing impactful guests for your podcast.
- Diversified Opportunities: Reach out to a large pool of potential guests, you increase your chances of getting positive responses.
- Surprising Outcomes: Sometimes, the guests who seem unattainable might respond positively when approached in the right way, as seen in the case of Grant Cardone.
Timing Is Everything
Keep an eye out for key moments in their professional lives, such as book launches, events, or projects. When you spot an opportunity to align your podcast’s theme with their stuffs, seize it. Your chances of getting a positive response are significantly higher when your request get attached with their priorities.
- Relevance: Timing your invitation to coincide with significant events in the guest’s life shows that you’re genuinely interested in their work and message.
- Increased Availability: During busy periods, high-profile guests might be more inclined to accept podcast invitations that align with their ongoing projects.
Scale Up: Increase Revenue Through Sponsorships
As your podcast gains traction and surpasses the 5000 downloads per episode mark, you’ll find yourself attracting more sponsors and generating more substantial revenue streams. At 10,000 downloads per episode, consistent income from sponsorships becomes a realistic possibility, opening the door to a more financially rewarding podcast.
Optimize Sponsorship Contracts
Congrats if you’ve managed to secure a sponsor. That’s the first obstacle you have overcome. Delivering a sponsored read that your listeners find interesting and enjoyable, in addition to being loved by the advertiser, is all that’s left to do.
Even if you are working with established brands or emerging companies, ensure clarity in contractual terms. Maintaining balance may be challenging, particularly when you’re initially starting out. But you get better the more you practice. Here are the
Tips for podcasters when delivering a sponsorship read
- Be yourself: When a brand sponsors your podcast they are investing in you as a host, just as much as the show itself. You might have to convey some key messages in a sponsorship read for an advertiser but make sure you do so in your own language, using your own tone of voice – after all, those are what listeners come to expect and why they clicked play on your podcast.
- Keep it personal: Storytelling is the lifeblood of podcasting, it’s what every great podcast episode has at the heart of it. It’s also what every great sponsorship read has within it. Don’t just talk about a product or service, illustrate your points with some personal tales.
- Get ready: The same planning that goes into making an episode before recording it should also go into recording a sponsored read. Before pressing record, consider what you want to say, make a strategy, make sure all the important points are covered, and even rehearse. Brands are more willing to regularly sponsor your podcast if your readings sound better.
- Contract Essentials: Contracts should outline payment terms, deliverables, and sponsorship duration.
- Short-Term Agreements: Initial contracts often span three to four episodes to allow sponsors to evaluate the effectiveness of the partnership.
- Long-Term Relationships: Successful partnerships can evolve into longer-term agreements, typically lasting six to twelve months, based on mutual satisfaction and performance.
Effective Promotion Strategies
Maximizing the impact of sponsorships involves strategic integration within your podcast episodes. Explore various promotional methods to effectively endorse products or services to your audience.
- Pre-roll Ads: Introduce sponsors at the beginning of episodes to capture listeners’ attention from the outset.
- Mid-roll Ads: Integrate sponsor mentions seamlessly within the episode, enhancing brand visibility without disrupting the listener experience.
- Integrated Content: Incorporate sponsors organically into podcast types and topics, making them an integral part of the narrative rather than standalone advertisements.
- Don’t exceed 10% ad time per episode: It might backfire to read advertisements for more than ten percent of the duration of your podcast episodes. Try to incorporate 30- to 60-second advertisements for goods and services that will benefit your audience.
FAQ
How can I find podcast sponsors?
Joining podcast networks, contacting corporations directly, leveraging podcast ad marketplaces, and collaborating with affiliate programs are some ways to get sponsorships.
How many listeners do you need to get sponsors on a podcast?
Depending on the company you’re selling to or the advertising marketplace you participate in, sponsorship requirements may change with regard to listeners or episode downloads. At Acast, we’ve discovered that advertisers usually seek for podcasts with a minimum of 10,000 monthly listeners.
How much are sponsors of podcasts paid?
Ad location frequently determines this. The most profitable ad position, mid-roll advertisements, may cost up to $25 CPM, while pre-roll ads typically cost about $18 CPM. Because there is typically less interaction after the audio episode ends, post-roll advertising are typically less expensive.
How many downloads are necessary for podcast sponsors?
Depending on the network, marketplace, or brand’s chosen ad model, different download requirements apply. Seeking a sponsorship arrangement, however, is not financially advantageous unless you routinely receive 200 downloads or more per episode.
Conclusion
With the insights and strategies outlined in this guide, you’re well-equipped to navigate the podcast sponsorships and unlock new avenues of revenue for your show. Remember to prioritize audience engagement, authenticity, and strategic partnerships. Now, go forth and monetize your podcast like a pro!
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