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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?
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].
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Written by Avi Gandhi, edited by Melody Song,
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