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f you’re considering monetizing your podcast, it’s critical that you understand what advertisers are actually looking for, here’s how. 

Pitching with Data

Enthusiasm alone can’t sell ads. What advertisers really want is data—clear, quantifiable metrics. We want to think they place ads because they see something in our content or our audience, this is partially true, but it’s the numbers that will close the deal. 

So when you’re pitching advertisers, pitch your data. Share your average downloads per episode, engagement rates, and social media reach. Go to them and say, “The post will get this many likes, comments, and impressions, and this is how many signups we can expect.”

Successful pitches hinge on demonstrating ROI. Advertisers want assurance that their dollars are reaching the right audience and will have tangible impact.

Key metrics to include in your pitch:

• Download statistics: Average downloads per episode over the first 30 days.
• Audience demographics: Age, gender, location, and interests.
• Engagement rates: Listener retention, click-through rates, and social media interactions.
• Social media reach: Followers, impressions, and average likes/comments on relevant posts.

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Remember Your Podcast is a Limited Resource

The growing popularity of podcasts has transformed them into premium, digital real-estate. Like all real-estate, its value is in its scarcity. Present your podcast as a finite, high-value resource for advertisers looking to reach your audience.

‍Strategies for managing ad placements:

1. Cap the number of ads per episode: Aim for one or two ads to maintain listener engagement.
2. Prioritize relevance: Only work with advertisers whose products or services align with your audience’s interests.
3. Highlight exclusivity: Emphasize that your podcast is selective, making ad spots more desirable.

‍Pro Tip: Use mid-roll ads instead of pre-roll or post-roll. Mid-roll ads are more engaging because they appear when listeners are already committed to the episode.

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Develop a Pricing Structure

Advertisers might pay based on how many listens your show gets, certain engagement metrics, or may simply offer a flat fee. Exactly how much they pay for each can vary widely, so it’s best that you understand how ad rates are typically calculated and when to push for each kind of pricing. 

‍How to calculate ad rates:

• CPM (Cost Per Mille): This is the standard, industry model. Advertisers charge based on every 1,000 interactions (usually downloads). Average rates range from $15-$30 CPM for pre-recorded ads to $25-$40 for host read ads. 
• Flat Rates: Most common for podcasts with smaller, niche audiences or very highly engaged communities (where CPMs might be untenable), these rates can vary widely and depend on how valuable your niche is to the potential advertiser. 

Regularly review your pricing as your audience grows, the more you understand about the audience the better you will become at pricing them. 

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Start with Small, Relevant Advertisers

While major brands like Nike or Coca-Cola may seem like the ultimate advertising partners, podcasters often find more success by starting with smaller, local companies. These partnerships not only feel more authentic, but also help you refine your approach to larger sponsors later.

‍Steps to start small:

• Research overlapping audiences: Identify businesses already catering to your listeners.
• Personalize outreach: Tailor your pitch to highlight opportunities for mutual benefit.
• Offer introductory rates: Build credibility with smaller deals before scaling.

‍Example:
A podcaster in the wellness niche might partner with a local yoga studio or organic skincare brand to create authentic, relatable ads.

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Be Strategic with Ad Placements

Balance is key when integrating ads into your podcast. Oversaturating a podcast with ads can alienate your audience, so focus on quality over quantity. Ensure the ads you choose are relevant and engaging.

‍Tips for strategic placement:

• Limit ad frequency: Stick to one ad at the beginning and one mid-roll ad.
• Segment ads clearly: Use music or sound effects to distinguish ads from regular content.
• Test placement performance: Analyze which spots drive the most engagement and conversions.

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Incorporate Ads Seamlessly

If you’ve ever listened to Joe Rogan, you’ll notice how effortlessly he weaves ads into his conversations. It doesn’t feel like an interruption—it feels like part of the experience. That’s the goal.

Instead of recording dry, standalone ads, start by integrating them into your content. Talk about products you genuinely love, share personal stories, and make your ads feel like recommendations from a friend.

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Test ROI Before Expanding

One mistake I see creators make is diving headfirst into hunting for “big ad deals” without testing the waters. Start small and analyze ROI for both you and the advertiser before scaling up ad partnerships. Test one or two partnerships and measure the results. Did your audience respond well? Was the time and effort it took you to close the deal worth it?

I’ve given up ad opportunities because after crunching the numbers, I realized that the time investment necessary to keep the sponsor happy was worth less to me than spending that same time promoting my own services. At the end of the day, you are your own most important product. That insight helped me adjust my strategy and focus on what worked best for me and my audience.

‍Key metrics to track:

• Listener feedback: Are ads resonating, or are they turning listeners away?
• Advertiser satisfaction: Did the campaign meet their goals?
• Conversion rates: How many listeners took action on the ad?

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Experiment with Pre-Launch Advertising

We have clients getting advertisers before even launching their podcasts—just pitching their value to the right partners. If you’re confident in your podcast, consider securing advertisers before launching. Present projected metrics and highlight how your content aligns with the advertiser's goals.

‍How to pitch pre-launch advertising:

• Create a media kit with projected audience metrics and detailed plans for content.
• Highlight your existing social media following or email list as proof of potential reach.
• Identify advertisers whose goals align with your podcast’s theme.

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Use Advertising as a Supplemental Income

For all its potential, ad revenue alone may not be enough to sustain your podcast business. Podcasters should treat advertising as a complementary income stream, paired with other monetization strategies like premium content, merchandise, or direct audience contributions. 

Advertisers are looking for creators who understand their value and know how to deliver results. By treating your podcast like the premium digital real estate it is, starting small, and keeping your audience’s trust at the center, you can build a monetization strategy that’s both sustainable and profitable.

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About Ryan Sullivan

Ryan is the founder of Podcast Principles and a podcast coach. In 2019, he was kicked off his company podcast because it “didn’t drive leads.” A month later, he quit and started coaching business owners on how to launch profitable podcasts. Since then, he has driven over 200,000 downloads, thousands of leads, and hundreds of episodes for B2B businesses.

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