You’ve probably heard the moment a hundred times. You’re halfway through a podcast when the host says something like:
“Before we continue, I want to tell you about today’s sponsor.”
Then you hear a short story about a meal-delivery service, mattress company, website builder, financial app, or whatever else happens to be sponsoring the episode.
That’s podcast advertising.
At its simplest, a company pays to have its product or message promoted to people listening to a podcast. But there’s quite a bit happening behind that 30- or 60-second advertisement.
Some podcast ads are personally recorded by the host. Others are professionally produced commercials. Some stay inside an episode permanently, while others can be replaced automatically depending on when or where someone listens.
If you’re a podcaster trying to make money—or a business wondering whether podcast ads are worth buying—it helps to understand how the system works.
Here’s what you need to know.
What Is Podcast Advertising?
Podcast advertising is the practice of promoting a company, product, service, or offer through a podcast.
The advertiser pays for access to the podcast’s audience, while the podcaster or publisher receives revenue in exchange for carrying the advertisement.
That’s the basic arrangement.
What makes podcasts a little different from many other advertising channels is the relationship between listeners and hosts.
People can spend hours listening to the same host every week. Over time, that voice becomes familiar.
This is one reason host-read advertising has become such a recognizable part of podcasting.
Instead of hearing a completely unrelated commercial, listeners hear the person they came to listen to explain the product. But host-read ads aren’t the only option.
Host-Read vs. Pre-Recorded Podcast Ads
There are two common creative approaches you’ll encounter. The first is the host-read ad. Here, the podcast host delivers the advertising message.
The advertiser might provide a complete script, or it might provide talking points and allow the host to explain the product naturally.
The second option is a pre-recorded or produced ad.
This is closer to the kind of commercial you’d hear on traditional radio. The brand or advertiser creates the audio, and that finished advertisement is placed inside the podcast.
Both approaches have their place. Host-read advertising can feel more connected to the show because the listener already knows the person speaking.
Produced ads give the advertiser greater control over exactly how the brand sounds.
The IAB’s podcast advertising guidance recognizes both host/announcer-read and pre-recorded creative, along with more elaborate options such as custom segments, branded series, endorsements, and presenting sponsorships.
Pre-Roll, Mid-Roll, and Post-Roll Ads
Podcast advertisements can also be described according to where they appear in an episode.
A pre-roll appears near the beginning.
A mid-roll appears somewhere in the middle.
A post-roll appears toward the end.
You’ll sometimes see these terms when buying or selling sponsorships.
Mid-roll advertising is particularly common because the listener is already engaged with the episode by the time the advertisement appears.
But placement shouldn’t be completely mechanical. Imagine listening to an emotional interview. The guest says:
“That was the moment I realized my entire company was going to fail.”
Then suddenly:
“THIS EPISODE IS BROUGHT TO YOU BY…”
That’s not a great transition. Good podcast editing looks for natural places where the conversation can pause before an advertisement.
What Are Baked-In Podcast Ads?
A baked-in advertisement becomes part of the episode’s audio. Suppose you record:
“Today’s episode is sponsored by Company X.”
You include that recording in the final audio file and publish it. Anyone downloading that version of the episode receives the same ad.
If somebody discovers the episode three years later, they may still hear the advertisement. That’s useful for long-term brand exposure, but it creates an obvious limitation.
What if Company X only paid for a four-week campaign?
What if its offer expires?
What if the company no longer exists? The advertisement is still sitting inside your old episode unless you edit or replace the file. That’s one reason dynamic advertising became so important.
What Is Dynamic Ad Insertion?
Dynamic ad insertion, usually shortened to DAI, works differently.
Instead of permanently attaching one advertisement to an episode, the podcast contains designated advertising opportunities.
An ad server can then determine which advertisement to deliver when the podcast file is requested. That creates much more flexibility.
Imagine you published an episode two years ago and it still gets 5,000 downloads every month. With baked-in advertising, the episode might still be promoting the original sponsor. With dynamic insertion, those old downloads can potentially serve current campaigns.
The IAB describes dynamic podcast advertising as allowing ads to be inserted when the podcast is requested, which can enable more precise scheduling, targeting, and reporting.
For publishers with large back catalogs, that’s incredibly useful. Your old episodes don’t necessarily stop earning advertising revenue simply because they’re old.
How Much Do Podcast Ads Cost?
Podcast advertising is often priced using CPM. CPM means cost per thousand impressions. The “M” comes from mille, meaning one thousand.
Suppose an advertiser agrees to a $25 CPM and the campaign delivers 20,000 qualifying impressions. The basic calculation would be:
20 × $25 = $500
So the advertising cost would be $500.
That’s a simplified example.
Real campaigns can be priced differently depending on the podcast, audience, placement, creative format, targeting, campaign length, exclusivity, and other factors.
Some sponsorships are sold for a flat fee instead. Others may be based partly or entirely on performance. Don’t assume there’s one universal “podcast advertising rate.”
There isn’t.
What Is CPA Advertising?
Another model is CPA, or cost per acquisition/action. Instead of paying mainly for exposure, the advertiser pays based on a desired result. For example, a podcast host might say:
“Go to example.com/podcast and use code JOHN for 20% off.”
That special URL or discount code helps the company track customers coming from the show.
If 100 people buy, the podcaster may earn money based on those sales.
This can work well when the podcast has a smaller but highly engaged audience. However, it also shifts more risk toward the creator.
With a fixed sponsorship, you’re paid for delivering the agreed advertising inventory. With performance-based compensation, your income depends much more heavily on whether listeners take action.
Understand the deal before agreeing to it.
You Don’t Need Millions of Listeners
Small podcasters often assume advertisers won’t care about them. That’s not always true.
Consider a podcast with 2,000 listeners made specifically for professional wedding photographers.
Now imagine a company selling $3,000 camera lenses. That audience could be valuable.
Compare it with a general entertainment podcast reaching 20,000 people who have no particular interest in photography.
The bigger podcast has ten times the audience. That doesn’t automatically make it ten times more valuable to that advertiser.
Niche matters.
Advertisers care about reaching the right people, not simply the largest possible number of people.
When pitching sponsors, explain who your listeners are. Don’t just say how many you have.
How Do Podcasters Find Advertisers?
There are several routes. You can approach companies directly. You can work with a podcast advertising network or marketplace. Larger podcasts may have sales teams handling advertising on their behalf.
Hosting and monetization platforms may also connect eligible shows with advertisers or dynamically served campaigns.
For a small independent show, direct outreach can be surprisingly effective. Make a list of companies that already sell products your audience might genuinely want.
Then prepare a simple pitch.
Explain what your podcast is about, who listens, how many downloads your typical episode receives, what advertising options you’re offering, and why the company’s product fits the audience.
Don’t send the same generic message to 500 brands. A smaller number of thoughtful pitches usually makes a much better impression.
Create a Podcast Media Kit
Once you’re serious about selling ads, create a media kit. It doesn’t need to be 30 pages long.
Include the podcast name, a short description, your audience profile, download or reach information, notable guests or achievements where relevant, available advertising formats, and contact information.
You can also include examples of previous partnerships if you have them.
Keep the numbers accurate. Don’t tell a sponsor your podcast gets 50,000 downloads because one episode went viral once.
If a typical episode gets 8,000 downloads, say that. Long-term advertiser relationships are more valuable than making one sale using inflated statistics.
How Do Advertisers Measure Podcast Ads?
Measurement can be more complicated than simply counting clicks.
Podcast campaigns may look at impressions or downloads, promo-code use, unique URLs, website activity, conversions, brand-lift studies, surveys, and other attribution methods.
Which metrics matter depends on the campaign. A direct-to-consumer company may care heavily about purchases.
A major brand launching a new product may care more about awareness and recall. This is why advertisers and podcasters should agree on expectations before the campaign starts.
- What does success mean?
- How will it be measured?
- How many impressions are expected?
- Where will the ad appear?
- How long will the campaign run?
The IAB’s buyer-seller guidance specifically recommends clarifying things such as placement, creative type, dynamic versus embedded delivery, CPM, expected impressions, campaign dates, and measurement arrangements before a campaign begins.
Don’t Promote Products You Don’t Trust
This matters more than squeezing another sponsor into an episode. Listeners trust podcast hosts.
If you constantly recommend terrible products because someone offered you money, that trust starts disappearing.
Be selective.
You don’t necessarily need to personally use every product you advertise, but you should understand what you’re promoting and avoid making claims you can’t support.
And if an ad is sponsored, make that relationship clear. Your listeners shouldn’t have to guess whether you’re giving an independent recommendation or delivering a paid advertisement.
The goal is to make advertising sustainable.
- A sponsor gets exposure.
- You get paid.
- Your audience hears about something that may actually be useful.
- Everyone wins.
How Many Ads Should a Podcast Have?
There’s no perfect number.
A 15-minute episode and a three-hour episode obviously shouldn’t have the same advertising load. Think about the listening experience.
You might be able to earn more money in the short term by stuffing an episode with advertisements.
But if listeners start skipping huge sections—or stop listening entirely—you’ve damaged the thing that made the advertising valuable in the first place.
Your audience comes first. Without listeners, there is nothing to monetize.
Final Thoughts
Podcast advertising can be one of the most natural ways to make money from a podcast.
You can sell host-read sponsorships, run professionally produced commercials, use baked-in ads, or take advantage of dynamic ad insertion. Deals might be based on CPM, performance, or a flat sponsorship fee.
There’s no single approach that works for every podcast. A huge entertainment show may rely heavily on dynamically served advertising.
A small business podcast might make more money from a handful of carefully selected direct sponsors.
What matters is understanding your audience and finding advertisers that make sense for them. Don’t chase every company willing to send you a check.
Build advertising into the podcast in a way that doesn’t destroy the reason people listen in the first place.
The best podcast ad doesn’t feel like someone interrupted the show to sell you something. It feels like a relevant message that happens to pay for the show you’re already enjoying.
The IAB’s podcast guidance distinguishes between host/announcer-read and pre-recorded creative, as well as baked-in and dynamically inserted delivery. Its buyer-seller checklist also recommends agreeing on placement, campaign dates, CPM where applicable, expected impressions, and measurement before a campaign begins