US podcast revenue to reach $2bn by 2023

The rise and rise of the podcast shows no sign of slowing, with the Interactive Advertising Bureau (IAB) forecasting that advertising revenue will amount to $2bn by 2023.

Why it matters

The figure comes from the IAB’s U.S. Podcast Advertising Revenue Study, and, if proved correct, will mean ad revenue for the format will have climbed over the next two years by as much as it did over the previous decade.

Key findings

• Revenues in 2020 were up 19%, from $708m to $842m, driven by especially strong revenue in the final quarter – up 37% year on year.
• The IAB predicts podcasting will bring in $1bn in ad revenue this year, doubling by 2023 to $2bn.
• Dynamically inserted ads, which allow ads to be placed at the point the listener downloads, increased their share of podcast ad revenue to 67% from 48% the year before; mid-roll spot placements continue to make up three-quarters (76%) of all ad
• Half of podcast ads are longer than 30 seconds because, says the IAB, longer ads allow for more compelling storytelling.
• Brand advertising, which was 45% of revenue in 2020, is growing compared to direct response ads (51% last year).

Soundbite

“Podcast listeners have shown that, even when working from home, podcasts are a preferred medium. Advertisers are benefiting from new technologies developed to serve these marketplaces, to make podcast advertising more dynamic and measurable than ever before” – Eric John, Vice President, IAB Media Center.

Sourced from IAB