Podcast advertising is growing like a weed.
According to the sixth annual IAB U.S. Podcast Advertising Revenue Study, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), podcast advertising revenue grew 2X faster in 2021 (+72%) than the total internet ad market.
This explosive growth has led to a new high of $1.4B in revenue, which is almost double the previous high of $836M in 2017.
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%.
The study also found that while podcasts are still primarily consumed on smartphones (57%), they're also growing rapidly on connected speakers (42%) and TV screens (3%).
While podcasts have been around since the early 2000s, they haven't been a mainstream form of entertainment until recently, when they started showing up on smartphones and smart speakers.
What's driving this growth? People are spending more time listening to podcasts than ever before—and advertisers want to reach those listeners!
Podcasts are a way to reach listeners in their cars, at the gym, and while they're doing chores around the house.
They're also easy to access on any device with a speaker or headphones—so it's no surprise that podcasts have become so popular.
It's no wonder that advertisers are taking notice: podcast listeners are more engaged than your average TV or radio viewer, and they tend to be younger than other media consumers as well.