Apr 6, 2019
Ep.15 - And Now... A Word from Our Sponsor
Tim and Kyle explore the thinking behind Luminary's non-Tweet
about podcast ads by exposing the realities behind an
advertising-based monetization strategy.
Episode at a Glance:
- Tim and Kyle questioning the reasons behind why Luminary
tweeted: "Podcasts don’t need ads" and then apologized and deleted
- This leads to a conversation that begins with, "Well, is
Luminary technically correct? The best kind of correct?"
- We then weigh the pros and cons of having skip buttons in apps
and if listeners are actually skipping most podcast ads.
- Tim talks about how a podcast ad led him to buy a new product
based on the host's recommendation -- and how it worked out
What did we learn?
- Both Kyle and Tim agree that we are not against podcast ads, we
just want better ads that take your audience into
- Practice moderation. Too many ads -- no matter if they are host
read or not -- is still too many ads.
- If the advertising message or product matches the host AND the
host's audience, then the ad actually works up to 25-percent of the
- Host read ads appear to fit the content better because the host
can personally connect the ad to the podcast.
- However, automated ad placement is still tone-deaf by creating
a jarring listening experience created by poor placement and
content alignment (SNL even made fun of this fact).
- The data shows that loyal followers will both trust a sponsor
AND buy their product if they advertise with their favorite
- Sponsors are still the best way to monetize a podcast, even if
you only sponsor yourself.
- Sorry, Luminary. Ads or no ads, paywalls for podcasting are
still a bad idea (like we told you back in Episode
- "The #2 radio advertiser in 2017 is now also the #2 podcast
advertiser, according to data from Magellan’s podcast ad report for
January. Magellan details all 110 ads the company found in the US
top 2,000 Apple Podcasts trending chart. The top three: #3 Indeed,
#2 Geico, and #1 ZipRecruiter. While this does show that US radio’s
$15.9bn annual revenue is beginning to come to podcasting (which
stands at a more meager $314m), none of radio’s other big
advertisers are yet visible in the podcast top 15."
- [A Sponsor] HAS to fit my audience. [That's why I charge
$90 an episode]. How did I come up with this? I felt $50 wasn't
work the extra effort and paperwork involved. $70 didn't seem
enough as I have a niche audience. $120 I was worried that they may
not get their money back. I settled at $90. I'm thinking in the
future I might charge $100 as I can do that and still sleep, and
look at myself in the mirror"
― Dave Jackson, School of Podcasting
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