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So we all hate ads until we make money out of the ads. So guys, we we're talking today about dynamic ad insertion, which is a bit of a mouthful. Mhm. Um I'm a little bit vague on all of it. What exactly is a dynamic ad insertion. Okay. It's an opportunity for a podcaster to be able to monetize their content. Okay.
Through ads that are inserted into their episodes. Mhm. As a result of them being with a specific host having indicated that they're available for advertising, having met a bunch of criteria. And then when you're listening to an episode and the podcaster says will be pausing for an ad break, then there's an ad and then the podcast continues.
That ad is as a result of dynamic ad insertion. Okay. So it's like YouTube when I've got a long video and then you've got ads in between at random moments. Yes. Same thing. Does it work exactly the same on Spotify and all the other platforms? It doesn't. YouTube is exact. Not exactly the same. YouTube controls the ads and just puts them into your video, essentially.
Yeah, and it's done via Google Ads. When it's a Spotify you you're you. You sign up for a hosting company, and that hosting company runs the dynamic ad insertions with you. Okay. I don't know if that makes perfect sense, but so it's kind of similar. But it's different for for Spotify. You can you have more control over your ads.
You can specify exactly when they appear. So you can do like a little build up to the ad break if you want, insert your ad and then carry on. I mean most, but it's controlled through the hosting platform and yourself. Okay, great. So now I've got a bit of a better understanding of what dynamic ad insertion is, but do we do this on our podcast?
No. Why not? You have to reach a level of downloads per episode to even qualify. Okay. And depending on which host you use, that will be a little different. Um, but sprout, which is quite a good entry level hosting option. Um, has 500 to 1000 downloads per episode as their minimum sort of entry level option.
Um, but it's important to note that you'll probably not notice any real brand value until you're hitting more like 5000 downloads per episode. So unfortunately, our little podcast isn't quite there yet. Not yet. Um, but it will any day now. Um, so yeah, I think it's really important that podcasters in the early days are working on growing their audience.
Yes. And if you can do that and focus on what you are trying to say, tell great stories. Have wonderful guests. Your audience will grow and then down the track you can monetize. Yeah. And and when it comes to that monetization. Um, so again, my limited knowledge is YouTube. YouTube handles that. And they pay you.
Now we've got a third party host. Do you negotiate the ad revenue split with that host? Not the platform? Yes. Um, I think again, depending on the host, you will have a different revenue share. I think it's 20 to 40% on Buzz Sprout. I'd need to double check that. Um, I'm not sure what YouTube's numbers are.
Um, I think they take more. I think they're about 50% right. Yeah. Um, so, you know, I think that it's, uh. It's not instant money. It's not overnight success. And it's not going to be a massive amount of money per month until such time as you have got regular, massive downloads on each episode. And again, I think that's why being consistent with your, um, output of your apps is important.
You've got to build that audience through good momentum. Um, if you can continue to maintain a good number of downloads per app, and if you're obviously producing more and more content, the monetization opportunity grows. Yeah. The nice thing about dynamic ads is that you can monetize your back catalog.
Yeah. So because if you're listening to an episode from two years ago, the ads you hear on it will still be relevant because they're being dynamically inserted. Yeah. They've changed. They've they've changed. So you can the more content you have out there, the more opportunity there is for dynamic ad insertion, which is cool, and it's just worth clarifying.
It's different to like a baked in ad. Yes. So baked in ad is just part of the episode. So if you might hear a Christmas ad in July when you know when you're listening to a podcast. So that's the main difference between dynamic ad insertion okay. And regular sort of. So it's really a volume game. Volume of audience, volume of episodes equals small gain on each add, which adds up into a revenue.
Yeah, that's the game. Maybe I can quickly look up the YouTube numbers
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just so that, you know, we have a yeah, something a benchmark YouTube. Yes. Um, okay. So for you to be eligible on YouTube. So this is different to Spotify and Apple, um, you need to have reached 500 subscribers. Um, and if I had up to three video uploads in the last 90 days. Okay. So they are concerned with the number of posts or apps.
And then one of the following are the 3000 valid public watch hours. Sure. In the last year or
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3 million shorts views in the last 90 days. Okay. So you can really see those are big, big numbers. And so in order for you to start being eligible to actually earn money from your content on YouTube specifically, you need to go and and reach those targets. And anyone can see this. It's in your YouTube studio dashboard and earn with a little dollar sign.
So also. So now I've got my podcast and I've got a host that's hosting my podcast. Yes. And I'm sending that out to multiple platforms. Yes. Does the dynamic ad insertion happen on each platform or does it happen by the host side? It happens on the host side. So you set it up with your host and you're sending it after your your podcast to five platforms.
Those ads will be on all five of those platforms, but controlled just with the host. So you're not fussing around on each platform trying to do different things. It's why working with a host makes a lot of sense as you get bigger. Um, you know, for us in our podcast, we aren't in the space yet where we've got enough followers and enough downloads.
So for us to upload our podcasts to Apple and Spotify and YouTube manually isn't such a big job. Um, we do have an RSS feed from Spotify to Apple, which means that is seamless. Okay, so basically this podcast is uploaded to two places. Um, Spotify and YouTube. And I think when we talk using a host, we're not using a host.
Correct. Because we're just not big enough. We're not we don't need the cost. Aren't yet. Yes. And and I think, you know, depending on, on your business and your model, this isn't a hard and fast rule, but for us, we will apply costs as we require them. So if we had a host now, it's not going to tremendously decrease the amount of labor, but it will increase our costs.
So for us at the moment, the choices will upload to two platforms. We're present on three, and when we get to the point where our downloads really warrant it and potentially there's some monetization on the horizon for us then. Selecting a host will make a lot of sense. Yeah. So basically what I'm hearing about is also don't get too excited until you've done the work of building the audience.
Yeah, the work is building the audience. All these other things will make sense at the right time. You have to build your brand and build your audience before you can monetize. Um,
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and you can build your brand without monetizing. You've just got to be consistent with your with your episodes. Yeah. Okay. So the the this third party, whoever it is, is doing the ad insertion. How do they decide what ads to insert into your podcast? I mean, yes, like I know with YouTube they decide based on your audience.
Yeah. And who's watching? But how does it work on the other side? Hmm. So when you upload your episode, you'll put markers so you'll be able to say, um, I'll be comfortable for an ad to be here and here, and you will also note the length of the ad placement. And then the the hosting will match that with a piece of advertising material in its catalog, but you can decide in the hosting platform, geography, time of day, devices, those sorts of things that that you are sort of looking for.
So you have a little bit more control than you would with, say, YouTube or something, where Google just decides what it puts in there. So the ads can be slightly more relevant. So the processes when a listener hits play, the system checks the geography, the device, all the things that you've specified and plays them the most relevant ad to them, to them.
Okay. And then could you say I'm doing a podcast on knitting, which I'm sure Jenna is dying to do? Um, can I restrict it to that kind of category? Okay. Yeah. All right. So it's always it's always relatable for the audience and the type of content. So, you know, from the advertisers perspective. They are looking to reach certain types of people.
So they are going to be making specifications. You know, they're going to say, right, we're looking for these kinds of people this age, this interest, this geography, and that will be sitting in the system. Then from the podcaster side again, provided you using a host, you're going to make your your preferences known.
And then the hosting company will put those two together. But this is all happening programmatically. Yeah. There's no intervention. Yeah. It's all automated. It's all automated. It's seamless. Yeah. For the the experience is seamless. It's a better listening experience for for the listener because they get more targeted ads that are more relevant and timely ads.
Yeah. And I suppose you could always ask your audience if they don't like the ads to donate, skip them just for a skip. Yeah, yeah. You know, that just takes you to that whole other debate of, you know, should you have advertising in there. You know, should a creator, you know, have to peddle their wares with advertisers?
Um, you know, content slotted into it? It is, you know, it's it's a whole other debate. That's another topic for it. It's a whole topic for another day. Um, but I think the, the thing to bear in mind is as your podcast grows, managing these kinds of things become quite challenging. Yeah. And you need to have a system through a good hosting company that will provide, um, ads into your feed without you having to manually do anything.
And, and, you know, provided you've got the downloads that can turn into, into revenue in due course or get a management company like IO to do it for you. Um, is the other option. The other option. So it looks like I'm not going to see some money for some time, but let us know if you want more details on hosts, which hosts you would like us to talk about, and if you have any questions.
See you next time.