Podcast advertising revenues in the U.S. are projected to reach more than $220 million in 2017 -- an increase of 85% over the $119 million logged in 2016, according to the Interactive Advertising Bureau’s first forecast of podcast ad revenue.
The research, undertaken by the IAB and PwC US, is informed by first-party data on podcast ad revenues, and shows that revenues have grown 73% between 2015 and 2016. Notably, marketers prefer ads read by podcast hosts to those that pre-produced in both years. In addition, 2016 saw more revenue generated by dynamically inserted ads. Direct-response campaigns remain the most prevalent campaign type, with brand awareness and branded content campaigns increasing from 2015 to 2016.
The IAB said the new study draws on historical data compiled directly from 20 of the industry’s largest players and encompasses all forms of podcast advertising. It comes on the heels of the full-year 2016 IAB Internet Advertising Revenue Report, which assessed the size of the digital audio space to show that digital audio ad formats brought in revenues of $1.1 billion. That report 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,” stated Randall Rothenberg, president and CEO, IAB.