Forecasted to Exceed $2B in 2022 and Over $4B by 2024
NEW YORK, May 9, 2022 /PRNewswire/ — The explosive revenue growth of podcast advertising reached a new high in 2021, racing well past the $1B mark to $1.4B.
Podcast advertising grew 2X faster in 2021 (+72%) than the total internet ad market according to the sixth annual IAB US Podcast Advertising Revenue study, prepared for IAB by PricewaterhouseCoopers LLP (“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, Vice President, 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.”
According to the report, there are three key factors helping to drive podcast ad revenue growth:
- More listeners and more content
- A continually expanding user base that is consuming a growing library of engaging and diverse content.
- 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 (84% and 85%, respectively).
- Growing investment across more ad categories
- The share of ad revenue generated within categories with lower spend volumes has more than tripled in just two years from 8% to 28%.
What’s ahead for podcasting
“The report indicates significant growth ahead, with advertisers buying podcast impressions at scale while tracking delivery, effectiveness, recall and results,” said Eric John, Vice President, 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.”
The annual IAB US Podcast Advertising Revenue study helps ad buyers gain insights into the latest opportunities available for podcast ad investment and sponsorships. For publishers, it helps to benchmark revenue performance and identify monetization opportunities at the ad category, ad-type, ad-delivery, and content levels, among other areas. The study aids ad tech and data companies gain visibility into opportunities to offer improved solutions in measurement, ad delivery, and beyond.
For the IAB Full-Year 2021 US Podcast Advertising Revenue, click here.
As in prior years, the quantitative, online annual survey was sent to leading Podcast industry experts in March to understand 2021 Podcast advertising revenues and trends, as well as forecast revenue growth for the next 3 years. This coincided with a Podcast advertising market-sizing to deliver an estimate of the market in the United Statesincluding non-survey participating companies.
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.
As business, accounting, and tax advisors to many of the world’s leading technology, media, and telecommunications (TMT) companies, PwC (www.pwc.com/us/tmt) has an insider’s view of trends and developments driving the industry. With approximately 1,200 practitioners serving TMT clients in the United States, PwC is deeply committed to providing clients with industry experience and resources. In recent years, our work in TMT has included helping our clients to develop strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across all geographies and segments, including broadband, wireless, film, television, music, publishing, advertising, gaming, sports, theme parks, computers and networking, software and technology services. With thousands of practitioners around the world, we’re always close at hand to provide deep industry knowledge and resources.
SOURCE Interactive Advertising Bureau (IAB)