Understanding CPM - How you earn money with Anchor sponsorships

Anchor Sponsorships lets you easily connect with brands who want to sponsor your podcast. Each sponsor has their own set CPM (“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 sponsor is willing to pay per thousand impressions (yeah, CPT would be easier for everyone, but “mille” means “thousand” in Latin and people who come up with acronyms like using Latin). In the case of podcast advertising, it means the cost per thousand plays of each ad. And specifically for Anchor Sponsorships, it means the cost per thousand plays of that ad across any episode where you have activated Sponsorships.

 

Let’s say you have 1 published episode of your podcast so far, and you’ve activated Sponsorships. 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). Here’s what your earnings might look like depending on the CPM of your sponsor:


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Anchor takes a 30% share of Sponsorships facilitated through the platform, this includes Anchor house campaigns, 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.)

 

There is no minimum audience size for running ads, but you’ll have more sponsors to choose from and become eligible for higher CPM sponsors as your podcast grows. If you ever have multiple Sponsorships running at once, we will always play whichever available ad has the highest CPM, to help you maximize your potential revenue.

 

Understanding Sponsorship Campaigns

 

Each Sponsorship campaign, in addition to its own CPM, will also have its own expiration date and maximum number of impressions. Since campaigns can be split among multiple podcasts, we can’t give you the exact estimates of how much you can make from each one, but we recommend recording for each new sponsor as soon as you are matched to maximize the potential number of impressions you can get from their campaign.

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