Understanding CPM: How you earn money with Ads by Anchor

Please note: Monetization is only available to U.S. creators. Only those with a U.S. Social Security Number or Business Identification Number will be able to cash out their earnings. 

Our Ads by Anchor tooling lets you monetize your podcast with advertising. Each tool has different set CPMs (“Cost Per Mille”), which determines how much money you can make based on your podcast plays. Here’s how CPM works, and how this whole thing breaks down.

Understanding CPM

CPM is called “Cost Per Mille” because it refers to the cost a brand is willing to pay per thousand impressions. In the case of podcast advertising, it means the cost per thousand plays of each ad. And specifically for different Ads by Anchor tools, it means the cost per thousand plays of that ad across any episode where you have activated an ad slot.

Let’s say you have 1 published episode of your podcast so far, and you’ve activated your Ambassador ad. Then, you publish a new episode. Your new episode gets 1,500 plays in its first week, while your older episode gets 500 plays in that same week — that’s 2,000 impressions a week (and that number will only go up as you publish more episodes to expand your back catalog).

If your CPM was set at $20, and you have garnered 2,000 impressions, that would make your total earnings (before fees) as $40. Anchor takes a 30% share of Ambassador ads facilitated through the platform which is how we keep our platform free. By helping podcasters monetize their work and sharing in the revenue at a rate that heavily favors the creator, we’re able to build a sustainable business model that benefits everyone. (You can learn more about fees and cashing out here.)

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