Brand sponsorship price guide
You’re ready to monetize your podcast and you’ve decided to open your doors to ads. Now you need to know how much you’re going to charge for your brand sponsorship rates!
Podcast sponsorship packages are a great way to increase your podcast revenue. Of course, this all pivots on your ability to price your podcast packages well. If you charge too high, sponsorships will look the other way. If you price your podcast too low, you run the risk of not being able to get the most value out of your sponsorship.
In this article, we’ll help you figure out the right price for your Brand Sponsorship rates. Before you look for your first sponsor, you need to know how podcast advertising works.
Ad format
The advertisers from Podmetrics will pay you to promote their products or services on your episodes. It’s up to you to add the narrative; just make sure it sounds natural and flows well.
As we dive into the standard pricing of Podcast sponsorships, you can sell advertising and sponsorships in a podcast in three different formats. So let’s take a look!
There are three different Podcast Ads that are broken down into three parts.
Pre-roll: when the show begins
– Pre-rolls are advertising spots that lie at the start of your show as part of your introduction. Usually, podcasters would spend up to 15 to 20 seconds talking about the products or services that they’re selling. You should be looking to price these between $15-$20 per spot.
Mid-roll: somewhere in the middle of your episode
– Mid rolls are the type of ads that are a bit more in-depth. Since it’s like the prime time of your show. Podcasters will usually spend up to 60-90 seconds talking about the sponsor. Here, you should be looking to price these a little bit more, around $20-$25 per spot.
Post-roll: after the show
– Post rolls are just like pre-rolls but it’s at the end of your podcast. They could be a little bit over 15-20 seconds, lasting up to 30 seconds. You should also price these between $15-$20 per spot.
On average, advertisers will pay you between $10 – $50 per spot. [According to Hubspot.]
You can also sell your ad spots per episode, charging $30-100 for the whole episode, but the prices vary from show to show based on your audience. It might come to a point where the advertiser will want to buy all three advertising blocks at once. If you encounter this, it’s common to throw in the Post-roll for free or just give a discount to offer extra value.
CPM:
CPM ( Cost Per Mille, or cost per thousand plays) is the industry’s standard metric that is used to determine the pricing for ad spots. With Podcast advertising, you can measure your rate by computing for your CPM.
CPM, you’re paid for every 1,000 downloads or listens. Here’s a breakdown of CPM pricing.
So, the CPM formula is CPM = 1000 * cost / impressions.
An example would be:
– Your sponsor pays $10 per 1,000 listens
– Your episode gets played 100,000 times
– You earn $1,000 for that episode.
To find your CPM, there are alot of online calculators that can do this for you.
Adjusting your prices over time
When pricing your ad slots, consider your podcast demographics. If your listenership is quite high, Adjust your prices accordingly. If you’re new to the podcast advertising world, you might not know the usual prices and you might be worried that podcast ads might have different prices. But, podcast ad pricing is very transparent because of your listenership.
However, you can also do a promotion where you sell your entire episode for a fixed price. The cost of this may vary based on your current CPM.
Don’t forget about the average prices for ad slots. Use that as a guide to be able to set your own prices, but make sure it’s reasonable.
Conclusion
Understanding ad pricing is the key to be able to get advertisers who want to work with your show. Be reasonable with your pricing and the rest will follow. Podcast sponsorships will help you monetize your show and Podcast sponsorships will slowly become scalable and profitable in the long run. Podcast sponsorships are great for your show but keep in mind your audience. Too many ads might encourage your listeners to shop tuning in. So,I hope this article was able to answer your questions about ad-pricing. Good Luck!