Why so many Creators have podcasts

(1 min read) Why does every Creator seem to be launching a podcast? Money…

Was this email forwarded to you? Subscribe

Why does every Creator seem to be launching a podcast?

It’s because the economics of podcasts are really good.

Let’s get into it!

.Breakdown.

Here are the ad benchmarks for podcasts:

  • Average CPM - $20 (pre- and post-rolls are cheaper, mid-rolls more expensive)

  • Ad load - 4-6 ads per 30 minute episode. Longer shows = more ads. Let’s assume 5 ads.

  • Sales fees - Podcast networks take 30% on average, Creators get 70%

  • $20 × 50% = $70

  • RPM - $70 per thousand downloads or views for a mid-sized podcast

And here are the ad benchmarks for YouTube AdSense:

  • Average CPM - $14 (average over 2023 in the US)

  • Ad load - Most Creators show just one (1) ad

  • Sales fees - YouTube takes 45%, Creators get 55%

  • $14  x  55% = $7.70

  • RPM - $7.70 per thousand downloads or views

For a YouTuber to make the same amount of money as a podcaster with 100,000 views and downloads per episode, they’d need a little over 900,000 views.

Now do you see why everyone’s got a podcast?

There are some caveats:

  • You need to partner with a podcast network to have ads sold into your podcast

  • Most podcast advertisers won’t buy on a show unless it has an audience of at least 50,000

  • Podcast ads are host-read, making them very similar to brand integrations for YouTubers, while AdSense is totally separate from the content of the video.

  • Not all Creators are a good fit for podcasting. You’ve got to have something to say for 30+ minutes, and an audience that cares.

Still, for many Creators looking to monetize large audiences in a relatively low-cost way, podcasts are often worth a shot.

And that’s why you hear about so many Creators launching podcasts!

Poll

Are you going to podcast?

Login or Subscribe to participate in polls.

Thanks for reading!

My mission is to enable a million people to find freedom in the Creator Economy.

This was an extended version of a previous LinkedIn post! Follow me on LinkedIn for more actionable insights on the business of Creators. 

My firm, Partner with Creators, is a fractional go-to-market team for the Creator Economy. If you’re struggling to work with Creators, get in touch here.

For anything else, reach out anytime - [email protected].

If you’re not already subscribed, please do - it’s free:

See you next week!

Like what you see? Subscribe Now or Partner With Us

Written by Avi Gandhi, edited by Melody Song,
powered by TheFutureParty

Join the conversation

or to participate.