After launching a podcast, one of the top questions I receive is: how can I monetize it? Beyond podcasting being a hobby for many; numerous people are utilizing it to generate revenue. Soliciting advertisers is an excellent way to collaborate with other brands and connect with your listeners. Podcast advertising exceeded 500 million in 2019 (!) However, before most advertisers will entertain giving you money, you must show a benefit. One main benefit is the conversion rate for podcast advertising versus digital ads in general.
My theory of why podcast ads achieve a higher conversion rate is simple. Due to the large number of podcasts that exist (nearly 800,000 and counting), there is something for everyone. This means that podcasters can, and should, niche down there topic area. When you attract active listeners, they are looking for ultra specific content. A podcast should not be generic. Actually, the podcasts that perform the best are the ones with a “cult” following. This results in loyal listeners who have a certain level of trust for the content and host(s).
This high level of trust earned by the podcaster results in a stronger knit community – leading to an easier sell of any product or service. Let’s call it an aftershock of the “Oprah Effect”. At its’ peak, almost any promotion on The Oprah Winfrey Show resulted in an item instantly selling out on the shelves. Why? Because the viewing audience believed that Ms. Winfrey would not promote anything that was harmful. If she said it was good; it was good.
The cycle is as follows:
Be authentic and true to the theme of your podcast
Build a loyal listening community
Go after advertisers that want to sell to your specific audience
Insert ads that your audience needs or wants
Watch the conversion rate skyrocket!
So, it’s simple. The reason that podcast ads our outperforming general digital ads is due to the the niche communities that are built in the podcast world. It all starts with your WHY you started a podcast and WHO you started it for. Once you are clear on these 2 elements, you will have the tools to build your audience and attract advertisers.