CommPro.biz Editorial Staff
U.S. podcast advertising revenues are expected to rise to more than $220 million in 2017. According to the first-ever IAB Podcast Advertising Revenue Study. This means an uptick of 85 percent over the $119 million recorded in 2016. The research, which covers 2015, 2016, and offers estimates for 2017, uses direct, first-party data on podcast ad revenues, and provides valuable insights into podcasting’s momentum, showing that revenues have grown 73 percent between 2015 and 2016.
Previous years showed that marketers preferred ads read live by hosts, instead of pre produced commercials. In 2016, this shifted to more revenue being generated by dynamically inserted ads. Direct response campaigns continue to be the most prevalent campaign type, with brand awareness and branded content campaigns increasing from 2015 to 2016.
This study draws on historical data compiled directly from 20 of the industry’s largest players and encompasses all forms of podcast advertising to provide a reasonable measurement of podcast advertising growth. This research comes on the heels of the full year 2016 IAB Internet Advertising Revenue Report, which included the first market sizing of the digital audio space. That report showed digital audio ad formats brought in revenues of $1.1 billion, which did not include the 2016 revenues from the podcast advertising market.
“The IAB Podcast Advertising Revenue Study proves two things—the whole world is listening, and brands are taking notice,” said Randall Rothenberg, President and CEO, IAB. “From the remarkable growth of podcast ad revenue, we’re seeing an ancient axiom being proved yet again: great rewards go to those who surprise and delight their fellow humans.”
“This study is the first to directly survey the podcast industry’s significant revenue generators—which means it’s the most accurate view of the medium’s largest players compiled to date,” said Chris Kuist, Senior Vice President, Research and Impact, IAB. “We partnered with PwC US for this study to build upon our longstanding relationship in producing the IAB Internet Advertising Revenue Report, which is widely considered ‘the gold standard.’ This research carries on that tradition, with a laser focus on what is clearly one of the industry’s most dynamic areas.”
“These findings confirm that podcasting is experiencing impressive year-over-year growth, and we can expect even more gains on the horizon,” said David Silverman, a Partner at PwC US. “The study also identifies key trends that should be on marketers’ radar screens.”
The IAB Podcast Advertising Revenue Study was underwritten by IAB member companies Acast, Authentic (a Podtrac company), Gimlet Media, HowStuffWorks, Market Enginuity, Midroll Media, Panoply Media, Public Media Marketing (PMM), and Wondery.
Please click here to download the study.