## The Architecture of Podcast Revenue
Podcasting is one of the most lucrative creator mediums because the audience is incredibly captive. Unlike YouTube where users skip ads immediately, a podcast listener in their car or at the gym will often listen to a 60-second host-read advertisement. Therefore, advertisers pay a massive premium (CPM).
### FAQ
**Q: What is Cost Per Mille (CPM)?**
A: CPM means 'Cost Per Thousand'. If a sponsor agrees to a $25 CPM for a mid-roll ad, it means they pay you $25 for every 1,000 times your episode is downloaded. If your episode gets 25,000 downloads, that single ad slot generates $625. If you run 3 ads an episode, and release 4 episodes a month, a seemingly 'small' 25k audience can easily generate six figures a year in income.