U.S. Podcast Ad Revenues Reached Landmark $314 Million in 2017 [REPORT]

U.S. podcast advertising captured $314 million in revenue in 2017, a rise of 86 percent over $169 million in 2016, according to the latest IAB/PwC Podcast Advertising Revenue Study for full-year 2017 released by the Interactive Advertising Bureau (IAB) and conducted by IAB and PwC US. The research predicts even stronger returns in the years ahead, forecasting that podcast revenue will surge to $659 million by 2020, a triple-digit 110 percent hike from 2017.

In self-reported revenues by top podcast companies, revenue continued to rise steadily, growing 94 percent between Q4 2016 and Q4 2017, yielding an 18 percent compound quarterly growth rate.

Host-read ads were cited as the preferred ad type, representing more than two-thirds of ads in 2017. Direct response ads transacted on a cost per thousand basis made up the majority of campaigns, followed by brand awareness ads (29%). In addition, ads integrated or edited into programming accounted for 58 percent of the podcast ad inventory in 2017.

Of the 14 podcast content genres measured, the top four generated more than half of the advertising revenue in 2017:

•     Arts/Entertainment (17%)
•     Technology (15%)
•     News/Politics/Current Events (13%)
•     Business (11%)

Drilling down into the category advertisers that are spending on podcasts, financial services took the top spot with an 18 percent share, followed by direct-to-consumer retailers, which accounted for 16 percent, and arts and entertainment, at 13 percent.

“These strong numbers speak to advertisers’ increasing recognition that podcasts provide a powerful platform for reaching and engaging audiences,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “Advertisers that range from traditional financial services to direct brand retailers are tapping into the medium’s highly engaged audience. IAB has long been at the forefront of promoting the podcast marketplace and we look forward to another action-packed IAB Podcast Upfront in the autumn, continuing to fuel the growth of this dynamic channel.”

“The growing trend toward ‘anywhere and everywhere’ media engagement has created tremendous opportunity for digital media, of which podcasting is a significant component,” said David Silverman, a Partner at PwC US. “Whether at home on a smart speaker, at work on a PC, or somewhere in between on a mobile device, more and more Americans are listening while they live, providing a robust podcast platform where advertisers can connect with today’s consumers.”

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