Podcast Ad Market Forecasted to Surpass $1 Billion By 2021
NEW YORK–(BUSINESS WIRE)–In 2018, marketers spent $479 million to advertise on podcasts in the
U.S., an uptick of 53 percent from $314 million in 2017, according to
the latest IAB/PwC Podcast Advertising Revenue Study. The report,
conducted by IAB and PwC US, forecasts that U.S. podcast marketplace
revenues will double by 2021, surging to over $1 billion. Self-reported
revenues by leading podcast companies show a similar trajectory,
reaching $345 million, a rise of 34 percent over $257 million in 2017.
Direct-to-consumer Retailers and Financial Services spent more on
podcast advertising than other industry categories. Overall, five
business categories represented nearly three-quarters of all advertising
revenue captured:
- Direct-to-Consumer Retailers (22%)
- Financial Services (21%)
- Business-to-Business (14%)
- Arts and Entertainment (10%)
- Telecommunications (7%)
Host-read ads continued to be the preferred ad type, constituting nearly
two-thirds of all podcast advertising. Direct response campaigns were
still the most popular ad type, but are decreasing in popularity, as
brand awareness and branded content ad types rose in use.
Cost-per-thousand was by far the most dominant pricing method.
“Today’s technology has created an audio-first environment where audio
is the preferred interaction—and consumers have put podcasts
front-and-center,” said Anna Bager, Executive Vice President, Industry
Initiatives, IAB. “Podcast storytelling is deeply engaging and provides
marketers with a brand safe environment that enhances the appeal to
advertisers. IAB has been a strong supporter of the podcast marketplace,
and we look forward to spotlighting the medium’s latest at this fall’s
IAB Podcast Upfront.”
“The steady climb in revenues for the podcast ad market underscores the
value of the platform’s flexibility and reach,” said David Silverman, a
Partner at PwC US. “Consumers are listening to podcasts wherever and
whenever—from their morning workout to their evening commute—making it
appealing to brands that want to reach today’s audiences.”
ABC Radio, Adswizz, AudioBoom, Authentic, ESPN, Gimlet, iHeartMedia,
Market Enginuity, National Public Media, Megaphone LLC, Podcast One,
Inc., PMM, Inc., Rawvoice, Stitcher, WarnerMedia, Westwood One, and
Wondery sponsored the IAB/PwC Podcast Advertising Revenue Study.
To review the complete report, please go to www.iab.com/podcaststudy2019.
Methodology
The reporting methodology includes compiling a
database of the largest podcast advertising revenue generators which are
believed to make up a significant portion of the overall market,
followed by a quantitative mailing survey with leading industry players,
including podcast publishers and ad networks. Specific data items are
requested and compiled, including quarterly net commissionable
advertising revenue by delivery mechanism, advertisement type, campaign
type, buy type, pricing model, podcast program genre, and advertising
business category. In addition, a podcast advertising market sizing is
performed to deliver a reasonable estimate of the market in the United
States, inclusive of non-survey participating companies.
About PwC US
At PwC, our purpose is to build trust in
society and solve important problems. We’re a network of firms in 158
countries with more than 236,000 people who are committed to delivering
quality in assurance, advisory and tax services. Find out more and tell
us what matters to you by visiting us at www.pwc.com.
©2019 PwC. All rights reserved. PwC refers to the PwC network and/or one
or more of its member firms, each of which is a separate legal entity.
Please see www.pwc.com/structure
for further details.
About IAB
The Interactive Advertising Bureau (IAB) empowers
the media and marketing industries to thrive in the digital economy. Its
membership is comprised of more than 650 leading media and technology
companies that are responsible for selling, delivering, and optimizing
digital advertising or marketing campaigns. The trade group fields
critical research on interactive advertising, while also educating
brands, agencies, and the wider business community on the importance of
digital marketing. In affiliation with the IAB Tech Lab, it develops
technical practices. IAB and the IAB Education Foundation are committed
to professional development and elevating the knowledge, skills,
expertise, and diversity of the workforce across the industry. Through
the work of its public policy office in Washington, D.C., IAB advocates
for its members and promotes the value of the interactive advertising
industry to legislators and policymakers. Founded in 1996, the IAB is
headquartered in New York City and has a San Francisco office.
Contacts
IAB Media
Laura Goldberg
347.683.1859
[email protected]
PwC Media
Natasha Mahapatro
425.217.7808
[email protected]
