Tuesday, 17 May 2022

The Podcast Advertising Market Tops $1 Billion for the First Time

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The explosive revenue growth of podcast advertising reached a new high in 2021, racing well past the $1 billion mark to $1.4 billion, as it continues to be one of the fastest growing channels in digital media.

Podcast advertising grew two times faster in 2021 than the total internet ad market according to the sixth annual IAB US Podcast Advertising Revenue study, prepared for IAB by PwC.

“Everything right now is aligned to drive growth. There’s more engaging and diverse podcast content than ever, and that is translating into larger, more attractive audiences,” said Chris Bruderle, VP, Research & Insights, IAB. “But more than anything, podcasting has proven that it can deliver beyond direct-to-consumer advertising to support brand-building and drive business outcomes.”

The phenomena isn’t stopping there with significant further growth ahead. Revenues are expected to almost triple by 2024 to over $4 billion.

“Advertisers are buying podcast impressions at scale while tracking delivery, effectiveness, recall and results,” said Eric John, VP, IAB Media Center. “Buyers will expect advanced brand safety solutions, audience targeting, and measurement, and we look forward to working across the ecosystem to create standards that serve creators, listeners, publishers and brands.”

Podcasting’s explosive revenue growth in 2021 was fueled by continually expanding user base consuming a growing library of engaging and diverse content.

There’s also an increased use of automated ad tech. The share of ad revenue served via Dynamic Ad Insertion (DAI) has almost doubled in two years to 84% as now both host-read and announcer-read ads are largely being served with this functionality, the report finds.

“As the amount of content and number of users grow, along with advertiser demand, the podcasting industry will evolve with greater implementation of brand safety/suitability tools, advanced, data-driven audience targeting, and ad effectiveness solutions.”

 


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