The podcast advertising model is broken

After digging into the topic in a previous article I found that the podcast advertising model is broken. In the previous article I talked about podcast advertising, how it works and untraditional ways that podcasters are using the medium to promote their own businesses. (You can read that previous article to get a sense of how everything works now.)

In this article I want to dissect a major problem in the way podcast advertising works. This broken model also applies to other forms of on-demand media (Netflix, Hulu, etc) but for the purpose of this article I’ll stick to podcasting alone.

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Podcast advertising model – how it works and alternatives to traditional ads

While doing research on podcasting in the last few months I started digging into the podcast advertising model. In this article I explain how advertisers choose a podcast, how much they pay, what metrics they expect in return and how successful podcast advertising really is. Because this is such a hot topic there is a lot of information available and what I’ve found is that traditional forms of advertising might not be the best way to monetize your podcast.

How podcast advertising works

If you listen to podcasts you’ll be familiar with the types of ads you hear during the shows. Usually there are three or four ads throughout shows. One during the intro, one or two during the show and one at the outro. Usually podcast advertisements are endorsements from the show host but in some rare cases I’ve heard an ad similar to what you would hear on the radio (a prerecorded advertisement or an ad “jingle”).

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