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.
[4 minute read]