Podcasting is poised to become a billion-dollar ad category, according to new estimates published by IPG Mediabrands' Magna unit this week. The research and marketplace intelligence unit projects U.S. podcast ad spending will reach $960 million next year and will top $1 billion in 2022.
While podcast advertising doesn't threaten to supplant conventional radio ad spending, it is growing rapidly while Magna projects radio ad growth will begin contracting next year, and for the foreseeable future.
Currently, Magna estimates podcast advertising represents a 3% share of the $16.2 billion U.S. "audio" ad marketplace, but will comprise an 8.2% share by 2022.
"CPMs are typically higher than what is seen in the linear broadcast space, due in part to the comparatively small podcast audience and growing demand as more advertisers across more sectors show interest in experimenting with podcasts," Magna writes in its just-published "The Podcasting Report," adding, "Pricing remains a challenge, as CPMs can range anywhere from $10-$25 for pre- and post-roll spots to $20-$80 for mid-roll spots to $70+ for highly sought-after shows."