Brands See Increasing Value in Podcasts

Podcast Ad Revenue Sees More Double-Digit Growth

Booming audience growth, increased visibility into its effectiveness, and unshaken by a global pandemic, podcasting continues to grab the attention of advertisers, with no foreseeable end in sight.

The 2019 Podcast Ad Revenue Study, released annually by the IAB and PwC, reveals that the podcast space is evolving (and growing!) in spite of moments of major disruption in the world at large. 

In 2019, ad revenue increased by 48% to $708 million. This year, the IAB is projecting 14.7% growth, and that is just ad revenue that has been reported as part of this study. The industry is well on its way to hit the $1 billion mark in 2021.

While DTC companies have been long-time supporters of podcasts (direct response campaigns still represent around half of revenue), mainstream brands are embracing the medium too in the form of greater investment. Brand awareness campaigns increased 10.5% from 38% in 2018 to 42% in 2019. Since 2016, brand awareness campaigns have grown almost 70%.

CPG advertising spend tripled while beverage and restaurant advertisers doubled, and telco ad spend also saw a slight increase. While new categories are emerging to compete in the space, podcasting is not getting commoditized. Brands are using the authenticity of the platform as host reads remain the preferred ad vehicle with 66% of revenue share.

Host reads have secured their favor with advertisers because they perform – even for campaigns without promo codes. A recent Nielsen brand lift study for a CPG product generated a 47% increase in purchase intent and a 28% increase in recommendation intent when listeners were exposed to the host-read ad. The podcast ads even outperformed social in recall as well.

If you’re getting FOMO right about now, it’s not too late to get started and even become a leader in the space. 

  1. INVEST IN THE TOP SHOWS
    Niche shows can deliver on hyper-engagement, but the talent behind top shows can get your message out to millions
     
  2. COMMIT TO SPENDING + CONSISTENCY
    The most recognizable podcast advertisers (think Casper and Squarespace) have had a steady, long-term presence in the space
     
  3. INVEST IN PREMIUM ADS
    Host reads remain the gold standard of ads by tapping into the unique DNA of the podcast environment
     
  4. USE THE ‘PODFLUENCER’
    Engaging the audience beyond the podcast with the host’s social can reinforce messaging
     
  5. FIND THE BEST FIT FOR CUSTOM OPPORTUNITIES
    Hosts will personalize their reads for their audience, but additional opportunities like custom segments may work for specific titles

You can get the full IAB study here

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