MEASURING PODCAST ROI
Marketing-savvy podcasters know that the big payoff of producing a show can be seen in the return-on-investment, or ROI, but how do you measure it?
The first step to determining the ROI of any podcast is to establish key performance indicators (KPIs) to be used for measurement. While it’s easy to look at number of downloads, you can go a little deeper by determining who is actively listening to your content. Depending on the relationships you’ve established with your audience, you may receive emails, tweets and reviews on a regular basis – these can all be considered KPIs. Looking to these KPIs each week can give you a sense of how your podcast is performing.
Another way to determine your ROI is to look at your ad revenue (assuming your podcast generates a profit). Your bottom line will always be a way to gauge the overall success of your podcast, if your primary goal is to monetize your efforts. Consider the following formula: revenue generated (minus) expenses (divided) by production hours. This can be used to determine the hourly ROI of any podcast.
However, this might not be an option for all podcasters – hobbyists may not have advertisers. They might not even have a large enough audience to gauge engagement via KPIs, such as emails or tweets. How can you measure your ROI if you fall into this boat?
In these instances, it might be a good idea to look to the statistics available through your publisher. Whether you use Libsyn, Podbean, or another podcast host, these platforms often offer statistics beyond weekly download totals (although some may charge a fee for more detailed data). Don’t rule out establishing your own KPIs to gauge your success over time, such as monthly download totals, to measure ROI in the form of growth.