Podcast Ad Revenue Up 53% in 2018! – The Buyer’s Journey 68

Podcast ad revenue grew 53% in 2018 totaling $478 million last year. But is advertising on podcasts right for your business? We discuss!

On The Up and Up

New research by IAB and PwC shows that podcast ad revenue has grown significantly in 2018. Here are some quick hit numbers:

  • U.S. advertisers spent an all-time high of $479 million on podcast ads in 2018. That’s a growth of 53% from $314 million in 2017.
  • Direct response ads are down by over 20% for podcasts, from 73% in 2016 to 51.6% in 2018.
  • The report also predicts that domestic podcast marketplace revenues will double to over $1 billion by 2021.
  • D2C retailers (22%), financial service providers (21%) and B2B (14%) ad buyers accounted for over half of the ad revenue.
  • Baked-in ads were the majority (51.2%) of podcast ads delivered in 2018. 
  • Dynamically inserted ads grew 7.5% to 48.8%.
  • Almost two-thirds of ad types are host-read ads, being much more popular than pre-produced and supplied ads. In today’s episode I mention why they are so popular. (Hint: Sometimes you get more time than you paid for.)

Podcast Ad Revenue Growth From 2015 to 2018 with predictions for 2019 - 2021

As Len and I discuss in today’s episode, advertising on podcasts has yet to show its full potential. Don’t get us wrong: for the right product, podcast ads can be a fantastic awareness play. After all, you’re hitting a direct audience with what is, effectively, influencer marketing. Especially if you’re using host-read ads, which are the most popular and often most effective. However, it shouldn’t be a majority of your marketing spend. Typically we suggestion a 40-40-20 split, with 40 each going to Google and Facebook. The final 20 can be divided as is appropriate. Experimenting with podcast advertising might be one such angle.

We’re going to be keeping an eye on podcast ad revenue going forward and we’ll report back with any new info.

Check out our next episode where we’ll discuss a news article covering the Awareness stage of The Buyer’s Journey.

Tune into more of The Buyer’s Journey by checking out our YouTube and Soundcloud, and take us on the go on the iTunes, TuneIn, Google Play Music, and Stitcher.

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