CPM isn’t the only way
I wasted an entire Friday morning arguing with a prominent podcaster on one of the many social networks where you can engage with such people.
One of us was trying to present an alternate perspective. And the other seemingly thought that every response was a vitriol-filled answer designed to bring shame upon them and their family.
I don’t blame this person for initially assuming our social media discourse was negative, perhaps even combative, in nature. A lot social media discourse is. I fully admit that maybe I didn’t come off as intended in the initial comment (though I tried).
The problem is that I did my best to not escalate the argument, and instead simply try to offer an alternative viewpoint for those podcasters who had not risen to prominence. However, another problem revealed itself quickly:
This podcaster thinks their experience is the only truly correct one. That CPM1 is the only possible way to measure how a podcast can make money. They even went so far as to say that any advertiser who isn’t looking for performance-based metrics is merely giving the creator a “donation.”
It’s an extremely narrow way to view a vast industry. And it’s not just this podcaster who thinks so.
Others I’ve spoken to in the industry have stated that it “always” comes down to CPM. And while it’s true that you can technically assign a CPM to any sponsored content2, impressions or direct sales may not be the measure of success for the advertiser.
It’s also true that if you do have a much bigger audience (say, 100 listeners vs. 1 million), you can command more money. Though I’d argue that it’s not always the case. If you have, for example, 5,000 listeners vs. 25,000, and those 5,000 are precisely aligned with the brand, you could command more money because you’re reaching a much better audience for the brand.
I mean, if it were always and exclusively a volume play, small creators would never make money from brand deals. My lived experience, and that of people in my client and student list, prove that’s not true.
So why the incredibly strong reaction at the very notion that CPM may not be at the heart of every brand deal?
Once I realized this was essentially a one-way argument, I decided to end the conversation, so I didn’t ask. I knew they’d need to have the last word. So I made my point and closed the social media app for the rest of the day.
But it still got me thinking…why so ardently defend a system that doesn’t benefit most podcasters/creators, to the point that you won’t even consider there are other ways?
The vast majority of podcasters would make virtually no money on the industry standard CPM model.
Case-in-point: My show, by the accounts I can find, is in the top 2% of active podcasts. But let’s just say top 5% for some wiggle room.
My episodes get around 5,000 downloads in the first 60 days. With an average CPM of $24, my show would make $120 per sponsor per episode.
However, most podcasts wouldn’t even come close to that — my 2 other shows included.
Some would argue, “Well, that’s how business works. Not everyone deserves to make money.” And while true, that sentiment is wildly misguided.
It basically says, “There’s only one way to provide value.”
There’s a big problem with the “my lived experience is the only correct one,” especially when other people look to you for guidance. While I understand that not everyone wants to be a teacher, being so closed-minded that you ardently defend a single perspective is detrimental to everyone in the space.
Oh — and I make nearly triple that per sponsor per episode, consistent, because I’ve found appropriate brands for the type of sponsorship I can offer.
3 Types of Campaigns
My friend Justin Moore outlines 3 types of campaigns:
- Conversions (the whole CPM thing)
- Repurposing, where a brand will basically pay you to create content they can reuse
- Awareness, where a brand basically just wants you to talk about them
Most of my campaigns fall into the Awareness bucket. I’m a respected voice in my space, and my small but mighty audience cares about what I have to say.
Plus, since my strength is in long-form, not short-form, content, most of my content is a slow burn. In other words, it performs better over time.
Understanding this allows me to craft my campaigns for brands in such a way that highlights longevity over virality.
Here’s an example from an actual campaign I did last year:
- 6 month mid-roll sponsorship of How I Built It
- 1 Dedicated Episode on How I Built It on about a topic important to the brand
- A YouTube video demoing the product
- “Work in Public” Live Stream talking about the niche, presented by the brand
- Dedicated Newsletter covering top features/use case
- 1 featured section of the newsletter per month for 6 months
I got over $10,000 for this campaign…and we never once measured CPM.
The key is knowing your strengths, understanding the brand’s goals, and creating an offer that is a win-win.
Which brings me back to an earlier point: why is there such a strong reaction to the notion that CPM isn’t the only way creators can sell sponsorships?
The only answer I could come up with on my own is not a very charitable characterization, so I’m going to keep it to myself until I can verify.
Instead, I will end with these thoughts:
- Any way we can help podcasters and creators make more money is a net win for the entire space.
- Just like there’s more than one way to cook and sell a hamburger (including, these days, completely removing organic meat from the equation), there’s more than one way to make money through brand deals.
- The idea that “ROI” and “CPM” are the only fathomable ways to measure campaign success is a detrimental one. It will deter creators from charging what they’re worth, or worse, trying to get brand deals at all.
If you’re trying to make money as a creator and want to pursue brand deals, remember this: it’s not easy, but there’s also not one right way.