NEW YORK—New IAB research reports explosive growth in podcast advertising revenue, which hit a new high in 2021 at $1.4 billion, and is expected to top $2 billion in 2022.
The study also projects that podcast advertising revenue is expected to reach $4 billion by 2024, growth that should bolster some of the investments TV news operations have made in the medium.
The IAB’s sixth annual study of U.S. podcast advertising revenue, prepared for the IAB by PricewaterhouseCoopers, also reported that podcast advertising grew 72% faster in 2021 than the overall market. Internet advertising.
“Everything is currently aligned to drive growth. There is more engaging and diverse podcast content than ever before, and that’s translating into a larger and more engaging audience,” said Chris Bruderle, vice president, research and insights. , IAB. “But more than anything, podcasting has proven it can offer more than direct-to-consumer advertising to support brand development and drive business results.”
The researchers found that growth was driven by three factors: more growth and more content; increased use of automated advertising technologies and increased investment in more ad categories.
The share of ad revenue served through dynamic ad insertion (DAI) has nearly doubled in two years to 84%, as both host-read and advertiser-read ads are now widely served with this feature ( 84% and 85%, respectively), notes the report.
Additionally, he found that the share of ad revenue generated in categories with lower spend volumes more than tripled in just two years, from 8% to 28%.
More information and the full report can be found here.