What is a Podcast?
Learn what a podcast is, how it works, and how creators earn money.
How Do Podcasts Make Money?
Advertising and CPM (Cost Per Thousand)
Many podcasts include ads. Sometimes the host reads the ad. Other times it’s pre-recorded by the advertiser.
Advertisers often pay based on CPM, which stands for Cost Per Mille — meaning the cost per 1,000 downloads.
Here’s how it works:
If a podcast has:
A $25 CPM
10,000 downloads
That equals 10 groups of 1,000 downloads.
10 × $25 = $250 paid for that ad placement.
And that’s for each episode. Four episodes at $250 is a $1,000! And there are usually multiple adds per episode. All of that can add up quickly.
The larger the audience, the more a podcast can potentially earn from ads. However, smaller shows often earn very little from advertising alone.
Video Monetization and AdSense
On YouTube, creators can earn money through AdSense, which automatically places ads before, during, or after videos. The platform shares a portion of ad revenue with the creator.
Earnings depend on:
Number of views
Watch time
Type of advertiser
Audience demographics and location
Revenue can vary significantly from creator to creator.
