Podcast advertising spending is continuing to grow, with spending in the US expected to eclipse $1 billion this year and $2 billion by 2023. Per a report from eMarketer, these numbers are an upgrade from previous estimates.
These updated figures are based on the surprising recovery podcast advertising spending made in H2 2020, as well as the fact that audience numbers continue to increase.
Podcast advertising was estimated to grow by 10.4% in 2020, but far exceeded expectations. In fact, actual advertising growth soared to more than three times original estimates with 36.8% growth, per eMarketer. Updated predictions show an increase of 38.7% in podcast advertising this year, to reach $1.33 billion. And, in two years, podcast ad spend is expected to reach $2.17 billion, a result of year-over-year growth of 24.5%.
About 4 in 10 (41% of) Americans listen to podcasts monthly and that number is rising every year. Additionally, podcasts have a diverse audience. While non-white adults represent just about one-third of the population, they make up about two-fifths (41%) of total monthly podcast listeners.
Even though only 18% of digital audio advertisers say podcasts are the best type of media for delivering sales, 31% say podcasts are the best form of media for improving brand awareness/recall. This could be contributing to the increasing popularity of podcast advertising.
Per eMarketer, as podcast advertising grows, the market remains fragmented. For example, while iHeartMedia brought in the most revenue from podcast ads, that revenue accounted for only 10% of total spending, with the remaining 90% being distributed across various creators, publishers, and platforms.
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