US podcast ad revenues see strong growth

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 13, 2021, 3:05 AM UTC

An IAB-PwC study predicts that US podcast ad revenues will surpass $1 billion in 2021 and be $2 billion by 2023.

Upper-funnel brand-building efforts are driving the growth in podcast ad revenues in the US. IAB’s report found podcast ad revenues in the US to have grown 19% YoY in 2020. This translates to $842 million, an appreciation from $708 million in 2019.  

Despite uncertainties due to the pandemic, podcast as a communication channel attracted ad dollars given the channel’s messaging agility backed by dynamic ad insertion options. Investments from leading audio platforms and buyer-friendly ad tech were other contributing factors driving the growth.

Bigger brands are also finding out that podcast advertising can perform well across the sales funnel. Further, at 19%, Direct-To-Consumer was the top advertiser category. In terms of content, news is the top genre for podcast advertisers.

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