What podcasters get wrong about advertising

While there’s lots of innovation in technology, there’s not much innovation in how businesses make money.

Regardless of whether you’re running a podcast, a newspaper, or a YouTube channel, there are really only two revenue models:

  1. Sell advertising to sponsors who want to sell to your audience
  2. Sell a product / service to your audience

If you want to sell ads, this history is instructive:

The decline of newspaper advertising and what it means for podcasts

This is from Thomas Baekdal’s article, and it’s worth a read. Specifically his distinction between “high purchase intent advertising” (Google) and “low intent advertising” (newspapers and Facebook).

The challenge for podcasters:

Even Alex Blaumberg, of Gimlet, is feeling this squeeze:

There’s one more problem with advertising, and it’s a business problem. I’m not sure the money will keep flowing. Right now advertising rates are high. But historically they’ve fluctuated quite a bit. The companies lining up to advertise on our shows right now might evaporate. Or, decide they’re willing to pay us, just a lot less. You need to diversify your revenue base.

Given this environment, it’s going to get increasingly difficult for small indie shows to make a living through advertising.

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Published on September 24, 2016