The tool below has been developed to allow you to calculate the estimated podcast ad revenue easily.
Summary:
Drag the slider to calculate potential podcast earnings $0 - $0 $0 - $0 $0 - $0
How to Use the Podcast Ad Revenue Calculator
Drag the Podcast Download Count slider up or down based on expected result.
Set how many podcast ads you want to include per episode + choose if you want to include a pre-roll ad.
Set how many monthly episodes you expect to be aired.
Fill rate averages around 70%, but you can drag up or down based on your fill rate expectations.
Factors That Determine Your Podcast Earnings Potential
Host-read ads vs. dynamic ad insertion
What makes podcasts such a powerful tool to explore is that the listeners’ connection with the host can play just as important a role as their connection with the content of the show. Host-read ads generate better brand recall than podcast ads not read by the host. According to data shared by The Nielsen Company, host-read podcast ads drive a brand recall of 71%, while ads not read by the host generates only 62% brand recall. What’s more, host-read ads are also more effective at encouraging listeners to find out more about the product advertised. Also, host-read ads are more authentic. As the ad will feel as if it’s part of the actual episode there’s better continuity. In short, it feels more natural. On the other hand, dynamic insertion ads are separate from the recording of the original podcast episode. As a result, the placement of the ad can change or it can be removed at a later stage altogether. From the point of view of the podcast producer, dynamic insertion ads can be more lucrative as you’ll get more opportunities to leverage sponsorship making it easier to generate ongoing ad revenue.
Pre-roll ads vs. mid-roll ads vs. post-roll ads
Most podcasts offer three slots for ads. It can appear in the first 10% of the episode as a pre-roll ad, in the middle of the episode as a mid-roll ad, or more towards the episode’s end as a post-roll ad. Pre-roll and post-roll ads are typically about 30 seconds, while mid-roll ads are about 90 seconds. Post-roll ads are usually a bit cheaper as not all listeners will listen to the complete episode. However, a possible perk that this type of ad offers is that it will most likely be heard by the most enthusiastic listeners.
Average rates
Podcast ads are sold according to a CPM (cost per mile, in other words cost per thousand impressions) model. For example, if you agree to an $18 CPM for a 30-second ad which is the industry average, the advertiser will pay $18 for every 1,000 ad listens. For a 60-second ad, the average CPM is $25.
Sponsorships
An alternative to using the CPM model is using sponsorships. Sponsorships are sold at a fixed rate for a campaign’s duration. In short, with a sponsorship deal the podcaster will market the brand for about a week (though, it can sometimes be for an entire season too). The size of the audience is one of the main factors that will determine the rate. If you’re new to podcasting and attract fewer than 5,000 listens per episode, sponsorships can actually be something worthwhile to explore. In this case, you can look for a sponsor that would be interested in your niche.
Fill-rate
The fill-rate for your podcast can vary between 40% to 80% and will depend on factors such as your audience demographics, the season, etc. It’s calculated using the number of downloads per episode, the number of episodes aired per year, and the number of ad spots per episode. The average number of ad spots seems to be four ads per episode. However, online data suggests that some podcasters have as many as six ads per 30-minute episode or eight ads per 45-minute episode.
