Podcast audiences continue to expand in the US, and as podcast listening goes more mainstream, adults of all ages are tuning in, with a particularly affluent audience profile. Recognizing this opportunity, advertising are pouring more dollars into podcast ads, with recent eMarketer data indicating that podcast ad spend surged by 55.1% year-over-year in 2021.
Podcast ad spend growth is expected to be cut in half this year, but is still projected to rise by a considerable 28.6% while sustaining a similar increase in 2023 (27.2%). eMarketer forecasts slower growth in 2024, but nonetheless a 16.4% increase.
The result of all this growth is that podcast advertising will this year account for more than one-quarter (28.6%) of all digital audio services ad spending, per the report, before increasing to more than one-third (34.2%) of all digital audio services ad spending by 2024. Digital audio services ad spending includes digital advertising revenues for local and national broadcast radio stations, satellite radio services, purely online radio stations and streaming music services.
By the end of 2024, eMarketer expects podcast advertising to be an almost $2.6 billion market, about double the $1.34 billion size it was estimated to be by the end of last year.
This is a much more bullish forecast than one offered last year by PwC, which predicted that the podcast ad market would reach $1.6 billion by 2025. It may be that after last year’s outlier in growth rate as noted by eMarketer, this year’s PwC report will adjust its forecast to a higher market size in coming years.
The broader digital audio services advertising market is predicted to have a greater role in overall digital audio spending in the years to come, according to an earlier eMarketer forecast. That prediction called for ad spending to comprise 37.9% share of the total US digital audio market in 2025, up from 36.1% share this year. The remainder will be held by subscription revenues, which include revenues from paid audio subscriptions and limited tier paid audio subscriptions.