U.S. Podcast Advertising Revenue Is Expected To Hit $2 Billion By The End of 2022
Source: IAB
U.S. podcast advertising revenue is expected to hit $2 billion this year. According to the Interactive Advertising Bureau (IAB)’s sixth annual U.S. Podcast Advertising Revenue study, podcast ad revenue topped $1 billion for the first time in 2021 and is projected to reach $2 billion by the end of 2022 and more than $4 billion by 2024.
The study also reports that podcasts are the fastest-growing advertising channel. The podcast advertising market grew two times faster than the overall internet advertising market in 2021, increasing 72%. This growth is primarily due to increased podcast listeners and diverse content, more adoption of automated ad technology like Dynamic Ad Insertion (DAI), and increased advertising spending by existing and new advertisers.
DAI ads, which are inserted into a podcast episode after it has been recorded rather than edited-in or baked-in ads that are part of the recording of the episode, generated a significant amount of ad revenue. The majority of these ads, which tend to be host or announcer read, accounted for 84% of ad revenue, a significant increase from its 48% market share in 2019.
According to the study, host-read (55%) and announcer-read (40%) ads are the most popular ad formats, mid-roll ads (64%) are the most common ad placements, and more than half of the ad inventory sold is between 16 and 30 seconds long.
Podcasts are experiencing explosive growth, and they are likely to continue to do so as more advancements are made in brand safety tools, audience targeting, and measurement. As more influencers turn to podcasts to reach new audiences, advertisers will have more shows to choose from, which will make podcast advertising more accessible to brands of all sizes and verticals.
Currently, brands rely heavily on Instagram, TikTok, and YouTube for their influencer marketing campaigns, but I expect to see more brands incorporate podcasts into their campaigns, especially since there is a demand for more influencer-hosted shows. Partnering with podcasters on ad-reads, branded segments, or even full episode sponsorship can help brands reach an engaged audience that is fairly open to learning about the products or services their favorite podcasters endorse.
