From Mystery To Clarity: The ROI Of Podcasting

I was today years old when I learned that Japan has a ratio of one vending machine for every 30 people. Almost none of them are vandalized or non-functional.

In today’s newsletter:

• Monetization: Let’s explore the two main avenues of podcast monetization.

• Writer Ads: Get inspired for your next paid ad.

• Ban: Half of Americans are in favor of a TikTok ban, Descript acquired SquadCast, and more.

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What is the ROI of podcasting?

It's the main question the businesses I work with want to know.

Unfortunately, because the ROI isn't clearly defined, it's challenging to give a straightforward answer.

I'm going to do my best to break down the two main ways to view the return on investment for your podcast:

Direct Monetization

These are avenues with a direct monetary value.

Here are a few examples of direct monetization:

• Advertising and Sponsorships: Once a podcast establishes a consistent listener base, it can attract advertisers. CPM (Cost Per Thousand listeners) rates vary, but they can be lucrative for popular podcasts.

• Affiliate Sales: Podcasts can earn commissions by recommending products or services.

• Crowdfunding/Premium Subscriptions: Platforms like Patreon allow listeners to directly support their favorite shows.

• Products/Services: Having your product or service act as the sponsor and main advertisement on your show (similar to what I do with Digital Podcaster).

Indirect Monetization

While direct monetization is more straightforward to track, indirect monetization can be equally valuable.

Here are a few examples of indirect monetization:

• Authority and Thought Leadership: Consistently publishing content on your chosen topic positions you as an expert in your field (refer to the Halo effect).

• Networking: While your podcast is available for listeners, it also allows you to connect with other professionals in your field, leading to collaborations, speaking engagements, and other opportunities.

• Lead Generation: Podcasts are often used at the top of a marketing funnel to attract clients, but they can also serve mid-funnel to nurture leads continuously.

• Brand Awareness: Regular episodes ensure your brand remains top-of-mind for your audience.

We can start to see why it’s so difficult for many to measure the direct ROI of a podcast.

One more thing to note in this breakdown is that the obvious next challenge is time.

If the goal is to see a return on investment, it will take time.

Podcasting isn't a "get rich quick" scheme, but rather a long-term strategy that I recommend as the focal point of your marketing strategy.

Next Tuesday, I'm taking this concept further with a visualization that I believe you’ll find useful.

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