In the last year or so, the podcast advertising industry has turned a corner. According to the Interactive Advertising Bureau (IAB) and PwC’s 2021 U.S. Podcast Advertising Revenue Study, the next two years will see a significant spike in podcast ad revenue growth.
In 2021, U.S. podcast advertising revenues rose to $1.4 billion, surpassing the $1 billion mark for the first time, a revenue increase of 72% year over year, according to the study. IAB also forecasts that the market will exceed $2 billion in 2022 and will be over $4 billion by 2024.
Eric John, vice president, IAB Media Center, said, “The report indicates significant growth ahead, with advertisers buying podcast impressions at scale while tracking delivery, effectiveness, recall, and results. 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 audio format is growing extremely fast and is driven by three key factors, the study found. This includes the ongoing increase in podcast listeners and content as well as increased use of automated ad tech and growth of ad spending in the “Other” categories that historically had lower spend volumes (sports, religion, etc.).