Podcast advertising in the US is expected to grow considerably in the next 4 years, with its market size doubling between 2019 and 2023 to reach $1.4 billion. This forecast appears to be on-trend, as both the percentage of advertisers discussing the potential of podcast advertising, as well as those who are already advertising in podcasts, has been increasing steadily over the past few years, per data from Advertiser Perceptions commissioned by Cumulus Media / Westwood One.
The data shows that three-quarters (75%) of the agencies and advertisers surveyed say they have discussed podcast advertising for potential media investment with their colleagues. This percentage has climbed considerably over the past 5 years, as just 41% of advertisers said they discussed potential investment in podcast advertising back in 2014.
The percentage of advertisers who are currently advertising in podcasts has also gradually risen over the same time period. In late 2015 a mere 15% of advertisers were advertising in podcasts. That percentage more than doubled by 2018 (32%), and as of this latest survey (fielded in May 2019) about two-fifths (39%) of those surveyed reported advertising in podcasts.
Other research has illuminated the advantages of podcast advertising. More than half of Americans (ages 12 years and older) say they listen to podcasts on either a monthly (32%) or weekly (22%) basis. Nearly 7 in 10 podcast listeners (68%) also say that they don’t mind listening to a couple of extra ads per show so that their favorite podcast can continue, with more than half (53%) saying they find most of the ads on podcasts to be engaging.
Westwood One also found that fewer podcast listeners skip advertising on podcasts than in other ad formats. Additionally, Adobe research reveals that three-fifths of podcast listeners say they have looked up products or services from an ad they had heard during a podcast, while about one-quarter say they’ve purchased the product or service they heard about.
About the Data: The results are based on a May 2019 survey of 302 advertisers and agencies.