A Better Way For Podcasters to Earn on Spotify.
4 powerful monetisation tools for podcasters.
UPD 13/02/2024:
Spotify has partnered with Riverside to offer new recording and editing capabilities to podcasters, sunsetting tools like “Music + Talk”.
Spotify — the pioneering Swedish streaming company led by Daniel Ek, is one of the most innovative platforms in history.
From personalised music recommendations and podcast integration to artistic collaborations, Spotify consistently evolves to attract and empower the most influential creators of this era.
The value of a company is the sum of the problems you solve. — Daniel Ek
In addition to the Merch Hub For Artists released on December 23, Spotify offers monetisation tools for podcasters to make a living from their discussions.
4 Powerful Podcaster Monetization Options.
Based on the country you are streaming from, there are tools available to finance the development of future podcast releases.
It all starts with podcasters.spotify.com. You must set up a Spotify Subscription to enable the monetisation tools.
To set up Subscriptions, your podcast needs at least 2 published episodes. You’ll need to leave at least 1 episode available for non-subscribers.
Once you’re set, you can choose amongst 4 types of monetisation.
1. Ambassador ads
= host narrating ads scripted by Spotify.
Requirements: 1000 listeners on Spotify in the past 60 days.
With this format, the host is assigned to a campaign per month and has to record the audio(visual) ad for a designated company.
2. Automated ads
= third-party sponsors running ads on behalf of the creator.
Sponsor-read ads inserted into the podcast.
The host defines when ads will be displayed in the podcast beforehand.
Similar to YouTube inserting ad breaks on videos.
This option is energy and time-savvy for podcasters who do not have to pre-record the narrated ads.
Note that Ads-related features are accessible on Invite Only for now. (cf. screenshot above)
3. Podcast subscriptions
= Offer bonus content and perks to your subscribers.
With Podcast Subscriptions, you can charge your audience for your show’s content — both on Spotify and on other listening platforms.
Requirements: 100 listeners on Spotify in the past 60 days and available in a few markets only
Launched in 2021, the return one can expect from the Spotify subscriptions feature can vary widely and is influenced by several factors:
- Audience Size and Engagement,
- Podcast Niche and Quality,
- Exclusive Content and Perks,
- Subscription Pricing.
4. Listener Support
= possibility to add a donations button.
Requirements: at least 2 published episodes and at least 100 listeners in the last 60 days. only available for US-based creators and supporters
A Business Case: “The Dairy of a CEO” by Steven Barlett.
In “The Dairy of a CEO”, Steven Barlett meets international entrepreneurs from various industries, exchanging about modern challenges while suggesting potential solutions.
The podcast’s primary objective is to influence and inspire a broad audience driven by business interests.
To fund the podcast production, the host uses a few methods (cf. podcast description):
- the promotion of Steven’s books “The Dairy Of A CEO” & “The 33 Laws of Business”
- The promotion of the interviewee’s book
- Driving traffic to his social media channels = money from ads displayed.
- Featuring Sponsors
in this episode, Steven has partnered with Zoe and Huel.
The monetisation models behind the podcast: “The Dairy of a CEO”
- Ambassador Ads: at each beginning of the podcast — a narrative read by Steven himself, selling the advantages of a certain product or service.
- Sponsorship: As mentioned earlier with Zoe and Huel, sponsors can finance the creation of the podcast via a pre-negotiated rate based on an estimated reach.
- The third (and off-Spotify-scheme) monetisation model is affiliation: the host will get a commission over purchases made via links and codes featured in the description.
in this episode, Steven gets a commission over
1. Books sold with the smart URL;
2. Purchases made on the Zoe and Huel websites with the given codes
How much does a podcaster make (in AVG)?
The earnings for podcasters enabling Ambassador Ads are calculated based on the number of impressions delivered, known as RPM (Revenue per Mille).
In 2021, the average RPM was approximately $13, offering podcasters a tangible measure of their revenue potential.
So if a podcast makes 100,000 listens, it would generate $1300 on average.
Again it depends on the listener's engagement, markets and audience’s interests.
While Spotify’s artist compensation model has faced criticism, the platform remains at the forefront of innovation, exploring new tools to generate revenue for the podcast industry.
Aside from the given monetisation schemes, affiliation and sponsorship remain one of the most profitable ways to finance and sustain the production of a podcast.
