In this article:
- The podcast industry reached a big ad revenue milestone
- That growth is expected to continue over the next couple of years
- Better tech and a huge library of content have contributed to growth
The podcast industry continues to see its volume–its advertising volume that is– increase.
Become the best CRMer you can:
CRM Hack: Monitoring the User’s Heartbeat
What Does It Mean to Treat a Customer’s Email With Respect?
To Lock or Not to Lock Customers (into CRM Journeys)
What the Efforts to Promote Responsible Gaming Look Like Form the Inside
Ad revenue from podcasts in the U.S. grew past $1 billion for the first time ever in 2021, according to recent data from the Interactive Advertising Bureau (IAB) and consulting firm PwC. Podcast ad revenue reached $1.4 billion last year, a 72% increase year-over-year. Podcasts are reportedly an area of massive growth for advertisers, and that trend is expected to continue in the immediate future.
Revenue from podcast ads has been steadily working its way toward the $1 billion mark in recent years. Revenue increased to $842 million in 2020, up 19% from $708 million in 2019. In 2018, revenue stood at $479 million. 2021 was predicted to be the year that the market exceeded $1 billion.
The growth rate of the podcast ad market is outperforming that of the total internet advertising market, 72% to 35%. The “Other” category is growing particularly quickly, more than threefold in two years. In 2022, podcast ad revenue is expected to rise past $2 billion. By 2024, revenue is projected to triple to $4 billion.
There are a few reasons why podcasts have become such a big source of revenue for advertisers. Audio as an industry has been expanding, with more and more content and listeners willing to consume it. As of 2022, there’s an estimated 2.2 to 3 million podcasts. And listening time is forecasted to grow 15.1% this year.
Additionally, the advertising technology for podcasts has been improving. Better technology has allowed advertisers to target audiences better and make the most of their ad spots. Plus, platforms like Spotify are banking heavily on podcasts. Spotify is experimenting with call-to-action cards and more interactive advertising experiences during podcast episodes. The streamer has also acquired two firms to enhance its analytics and measurement.
Podcasts are an ideal format for advertisers, according to IAB vice president Eric John. “Consumers love listening and will integrate it into their lives wherever it fits. Advertisers love the flexibility to adjust their messaging on the fly,” said John.
The push towards podcasts could mean a greater variety of ads for listeners. Stay tuned to learn more marketing trends.