The holy grail of any advertising has been to get the right advertising in front of the right people. I don't dislike advertising; I dislike irrelevant advertising. That's the area where narrowcasters can really provide value to advertisers. Interested audiences are what advertisers are looking for. Podcasters have it.
Another point to keep in mind is that the reason CPM (per thousand download) rates are so low is because historically, only a small percentage of the audience was deemed to be interested in the product. Since advertisers knew they were paying to put their ads in front of a bunch of people who weren't going to take action, they refused to pay very much.
That's different now, but the current system is so ingrained that we're in danger of missing the boat entirely.
So sell out, sure - but do it for your listeners and for your fellow podcasters.
Via Podcasting News