The Interactive Advertising Bureau (IAB) predicts that ad revenues for podcasts are set to double by 2020, from an estimated $314 million in 2017 to a projected $659 million in 2020.
Over the last decade, the popularity of podcasts has boomed, becoming a mainstay of the media landscape. While the popularity of podcasts is no longer ‘new’, what is new is the anticipated influx of advertising revenue over the next few years.
The Interactive Advertising Bureau (IAB) predicts that ad revenues for podcasts are set to double by 2020, from an estimated $314 million in 2017 to a projected $659 million in 2020. The most common podcast ad-type is ‘baked-in’ advertising, ads read by the presenter.
This influx of new advertising revenue comes as advertisers respond to a combination of the increasing popularity of podcasts alongside the unique opportunities provided by such ads. IAB’s executive vice president of industry initiatives, Anna Bager, noted to CNBC:
‘When you listen to something, it’s much harder to block it out than when you’re looking at a number of different things. Your brain kind of picks it up quicker’
Podcasts also offer advertisers new audience opportunities in our complicated media era, reaching younger and more difficult to reach populations now accustomed to on-demand ad-free media. Such audiences find the ‘baked-in’ ads of podcasts more palatable than traditional ads, seeming more like an organic extension of the show.
The ability for podcasts to reach more targeted self-selected audiences can also increase audience engagement with advertising. As explained by the Squarespace founder and CEO Anthony Casalena:
‘It’s content that’s niche-focused, so you can’t get (it) anywhere else. Hosts establish a relationship with their audience. You know there’s a real kind of connection and feeling there.’
The popularity of podcasts shows no signs of tapering off, and we can expect this anticipated uptick of ad revenue to continue if podcast growth trends persist.
Jasmyne Cannick: Dylann Roof and Gangs