Your idea of selling 15- or 30-second ad spots for a series of episodes is quite promising. I have implemented this model utilizing dynamic content. But ads can be baked in. The great thing about this is it is the Wild West of selling podcast space, and it is really up to you to set the parameters that work best for your listeners first and then your sponsors.
First, I would say to look into dynamic content as you could sell these episodes, but looking farther into the long tail, you could resell them later, especially if the information is evergreen. Another valuable option is geolocating your advertisements and sponsorships for regions or chapters. Local sponsors might like this.
One of our association partner's podcasts sold a season of sponsorships to five different sponsors. They were all mentioned in the pre-roll (beginning) and post-roll(end), and they took turns being the midroll sponsor in two episodes throughout the year. The midroll is in the episode itself and deemed most valuable. I thought it was creative at the time, as they were paid upfront for the season's episode preparations, production, and promotion. Plus non-dues revenue. But after two years of this, they moved to a model like you are thinking.
One of my podcast friends, Geralyn Warfield, and her team have been really creative in selling a "series" of three podcasts. They usually post them all at once. They also sell regular sponsorship and use podcasting for CE credits. She and I had a nice talk about your question this morning, which led to a nice brainstorming session. (she is a member of this community)
I have another partner that would sell a sponsor package of two ad spots in consecutive episodes, and then on the very next episode(third), the sponsor would be on the podcast as a segment or guest. This episode is NOT an infomercial, and they must bring value to the audience.
One thing that is developing is data and metrics on the actual episodes that your sponsors will want to see. Remember that your audience is niche, and those ears are important to your sponsors.
What I've gathered from all their experiences is that it's essential to emphasize the value of consistency and long-term exposure to potential sponsors. Also having flexibility in pricing and ad creation was important to accommodate various sponsor needs. You might want to explore different marketing channels to attract sponsors to this model. It's an interesting avenue to pursue, and I hope you find more examples than these! Please share them.
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Michael McAllen
Podcasting4Associations
Oakland CA
mike@podcasting4associations.com------------------------------
Original Message:
Sent: Nov 03, 2023 02:20 PM
From: Rachael Bell, CAE
Subject: Choosing the Right Pricing Model for Podcast Sponsorships!
This is something that I've had on my wish list for a while. We have managed to have a few sponsored episodes, where the sponsor provided the subject-matter expert for the episode. But I'm interested in exploring additional options. As an avid podcast listener myself, I've certainly listened to my fair share of commercials – either pre-recorded or read by the host. The model I was thinking would work for us – but I haven't been able to find examples out there to model after – is selling 15- or 30-second ad spots to a sponsor for a series of episodes at a set price. For example, a 15-second ad in 2 months of episodes (our episodes are weekly) for $xxx. Has anyone done something like that?
RACHAEL BELL, CAE
CONTENT & COMMUNICATIONS DIRECTOR
Direct: 862-702-5620 | Main: 973-226-4494
105 EISENHOWER PARKWAY, SUITE 300
ROSELAND, NJ 07068
Original Message:
Sent: 11/1/2023 5:13:00 PM
From: Michael McAllen
Subject: Choosing the Right Pricing Model for Podcast Sponsorships!
Today, I'd like to discuss something on my mind lately - the various pricing models for podcast sponsorships and how associations can tap into non-dues revenue through podcast sponsorship.
One of the critical decisions associations need to make when monetizing their podcasts is choosing the right pricing model. The three most common options are CPM (Cost Per Mille), CPA (Cost Per Acquisition), and Market Valuation. Each of them has its own advantages and considerations, and I'd love to hear your thoughts on them.
CPM (Cost Per Mille): This model calculates the cost per thousand downloads or impressions. CPM is an excellent choice if you want to attach a tangible dollar value to your podcast's audience. For instance, if you have 1,000 to 9,999 listeners per episode, you could charge $25 for a minute-long ad. But, it's not just limited to downloads; you can apply CPM to other podcast-related opportunities like social media impressions or video views.
CPA (Cost Per Acquisition): This pricing model focuses on how much it costs for a sponsor to acquire new customers or listeners through your podcast. If a sponsor pays you $5,000 and gains 10,000 new customers, it's a win-win situation. However, if they spend $10,000 and only get 5,000 new customers, the CPA might be too high, and the sponsor may feel disappointed. CPA is an excellent model to showcase the sponsor's ROI.
Market Valuation: This approach involves evaluating the value of each of your podcast assets one by one. It's especially useful when dealing with a wide range of sponsorship opportunities. I recommend this method for all of my sponsorship seekers, although it might not be as common in social media or influencer sponsorship. It is wonderful for association podcasts as they are the most niche in the industry. They want the ears of your members! It's essential to base your asset values on market data, competitor pricing, and a thorough analysis of your unique assets. However, be cautious about directly copying numbers, as this may not always represent the true value of your assets. I got into podcasting while producing association events and seeing what the exhibitors will pay to get three days in a booth for the annual conference. They see the value in getting the focused ears of your members on a regular basis.
Now, let's get into the conversation:
Have any of you used one of these pricing models for podcast sponsorships, and if so, how did it work out for you?
What other strategies or models have you found success with in generating non-dues revenue from your podcast or podcast sponsorships within your associations?
Do you have any unique experiences or insights to share on the topic of pricing models for podcast sponsorships?
I'm excited to hear your thoughts and experiences on this subject, and I'm sure we can learn from each other's successes and challenges. Please feel free to share your expertise and any tips you have for fellow association members.
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Michael McAllen
Podcasting4Associations
Oakland CA
mike@podcasting4associations.com
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