The Numbers Are In: Podcast Ad Revenues To Exceed $2 Billion By 2023
Podcast ad revenues have skyrocketed over the last five years, and 2020 was no exception. The latest IAB report shows a 19% increase YoY from 2019 to 2020. Advertising revenues from this channel are expected to reach $1 billion in 2021, and exceed $2 billion by the year 2023.
IAB named podcast advertising as “one of the bright spots in media spending,” and there are countless reasons why brands are flocking to podcast advertising. Over the 2019 to 2020 period, the COVID-19 pandemic caused a huge increase in podcast listenership, expanding the potential market for advertisers. In the midst of a shrinking economy, podcast advertising was one of the only industries that saw this level of growth throughout 2020.
The IAB report also sites investments in high quality content, partnerships, and ad tech from leading audio platforms as drivers of podcast ad revenue growth last year. As the tracking and attribution gets more accurate and technology becomes more sophisticated, podcast ad revenues are not expected to slow down any time soon.
There were a few key areas within the podcast industry that saw the most growth. These are the metrics to watch moving forward, both for creators and brands interested in investing in this rapidly growing market.
- Direct-to-consumer advertising remained the top market share at 19%
- Health and wellness was the top category within DTC podcast advertising
- Pharmaceuticals more than doubled in share YoY
- 90% of podcast ad revenues were based on CPM buys
Types of Ad Space
- Dynamically-inserted ads increased share of revenues by nearly 20%
- Mid-roll placements accounted for three fourths of revenues
- Pre-produced ads (created by brands) increased share by 11%
- News continues to be the top genre, accounting for 22% of podcast listenership
- Science quadrupled its share in listenership
- Video-enabled podcasts accounted for less than 10% of revenues, underscoring the inherent value of audio
- Investments shifted from longer commitment annual sponsorship to remnant/scattered buys
If your brand is interested in exploring podcast advertising and empowering women’s voices in this rapidly growing space, explore the Ossa network by booking a call with one of our Account Executives here.