Acquired: $500k for a podcast ad read

A rare Sunday post

The Acquired podcast is a beast of a business. They’ll publish *eight* episodes all of next year with >$60M in revenue through ad reads alone.¹

They’ve already sold all of their sponsor slots for this year, and if you’re looking to book one of the few remaining slots for 2027 it’ll cost you ~$2M total for a four-episode minimum. As far as I can tell: their only full-time employee is their research editor, they have no video team because they rarely do high-production video episodes, and since they run ad sales themselves with no agency middleman to give a cut to, it’s an absurdly high gross margin product. It’s truly a ridiculous two-man operation.

“If someone told me that two guys with no literary background were going to create a four hour podcast about a single company, and people were going to be mesmerized by it and want more…I’d say that doesn’t sound very promising” - Michael Lewis on Acquired’s 10 year anniversary episode.

It turns out that these episodes, lovingly referred to by the hosts as “conversational audiobooks”, are, in fact, quite promising. Founder myths feel like one of the final bastions of monoculture—Mark Zuckerberg, for example, inspires the same strong feelings of love or hate that a politician might have twenty years ago. So it makes sense to find success with a podcast that treats founders and companies as protagonists in “cinematic spectacles.”

There’s a lot to learn from their product, but today I’m more interested in exploring their business. Pay Attention is, at its core, about two questions: how new media forms take shape, and how people get paid for them. Through that lens, Acquired is a near-perfect case study: they’ve somehow rebranded the standard podcast into a “conversational audiobook,” and they’ve assembled a listener archetype valuable enough to charge >10x the industry standard CPMs for a midroll ad. I suspect I’ll be dissecting them again and again.

I. Counter-positioning everywhere

Podcast clips and nonexistent attention spans make it feel like volume is the only way to win in the media business right now. I’m somewhat guilty of the same with my publishing cadence here. Acquired, however, consciously counter-positions their show through the lens of the legendary businesses they podcast about: in a landscape of competitors trying to be the MLB with hundreds of games a year, they’re actively trying to “become the NFL,” with a few major spectacles culminating in their very own Superbowl.

This year they’re going to release a total of eight episodes, each of which will likely be over four hours long. Contrast that against Joe Rogan, who has already published six episodes eleven days into the year. Acquired has no consistent video product, and only one interview episode a season. In their 10 year anniversary episode, Ben Gilbert says, “If CNBC’s product is 2% relevant in 5 days, then our product should be 80% relevant in 5 years.”

They then bring the same philosophy to the monetization of their product, and believe that “the commercial side of the business should have no separation from the editorial side of the business.” Their commercial relationships sit inside the same world as their editorial stories (enterprise SaaS, B2B infrastructure companies), so they lean into that alignment instead of pretending it doesn’t exist. They don’t use agencies, they run ad sales themselves, and don’t use dynamic insertion on their back catalogue.

When you’re selling ad inventory through dynamic ad insertion or via a podcast ad agency, you’re charging on a cost per impression basis that is, by definition, infinitely replaceable. 1000 impressions on your podcast are priced in the same range as 1000 impressions on another podcast. Acquired, however, has consciously crafted an ad product that is not at all fungible. Which reminds us that…

II. All ad inventory is not made equal

Acquired’s ad product is not the size of their audience. Acquired’s ad product is the archetype of listeners in their audience. When your listener reviews include the likes of Jamie Dimon (CEO and Chairman, JPMorgan Chase), Jensen Huang (CEO, Nvidia), and Tony Xu (Co-founder and CEO, Doordash), it would obviously be ridiculous to try to monetize the business by shilling a standard podcast mattress ad.

All things considered, it’s actually not that big of an audience at ~1 million listeners a month. But 35% of their audience is C-level or VP-level executives, 14% are active CEOs, and 21% work in an investment or corp. dev role, so they’re able to offer something most podcasts can’t: access to decision makers. It’s kind of ridiculous to imagine 350,000 captive C-level executives in a room listening to your sponsor pitch. Some choice quotes from the hosts on their ad business:

“Most businesses operate on a CPM basis, so you’re incentivized to make as many episodes as possible with as many ad reads as possible. Our business is structurally different.”

“We deal with B2B products with high LTV. A single customer should be worth several million dollars a year [to our sponsors]. We want to feel like we can deliver and actually move the needle on one or two of those.”

“If you want to market your B2B software to founders or executive decision makers, we’re the guys.”

“Many of our sponsors have been ROI positive on signing just one customer”

The deal size and alignment required for these deals then unlocks some other interesting parts of the business. First, each ad read is designed as a “2 minute analysis of your business,” almost like a mini episode of Acquired. It’s obviously still an ad read, but it lends the sponsors the same narrative lens that Acquired uses on its flagship case studies. It’s a premium product that at least feels somewhat additive to the episode. Next, they further demonstrate their alignment with the sponsor by showing up IRL: “We’ll do events with most of our big sponsors. Customer dinners, speaking at an annual customer conference, going to sporting events with big customers, or fireside chat with the CEO.” The deal sizes are large enough that they’re actually trying to build long term relationships with long term businesses. And lastly, they’ll try to invest in some of these long term sponsors. They believe that access to hot deals is often more important than real diligence at the growth stage, and they trust that their reach will be able to move the needle on the businesses they work with.

When I was selling Shopify Plus back in ~2017, the company’s $24,000/year “enterprise” product, we often joked that our main competitor was Shopify Advanced, its own $2,000/year product. There was some truth there: Shopify Plus at the time didn’t really have any meaningful feature differentiation aside from a dedicated account manager and some light automation tools. But the story we sold was enchanting enough to unlock real pricing power. Shopify Advanced was for “mom-and-pop shops,” while Shopify Plus was for “high-growth merchants who were ready to become entrepreneurs.” We sold the hell out of the product roadmap, as any good salesperson will, but the reality was that people were justifying the 10x difference in price because of how we made them feel about their future.

Acquired has done a fantastic job of breaking out of the rat race of CPM-based podcast ads, and to be clear, I don’t think they’re in the same boat as my outdated memories of Shopify Plus vs Shopify Advanced. As far as I can tell, they’re actually delivering results for their sponsors. But it’s also clear that this is downstream of some very conscious storytelling on their part. It’s an interesting thought experiment: how might a particular media business reframe its audience to 10x the value of its ad inventory?

1. Just some rough math from their sponsor document: 8 episodes next year, 4 sponsors each, ~$2M per sponsor.