Nieman Lab: Podcast revenue growing fast enough for everyone
Nick Quah, producer of the popular podcasting newsletter “Hot Pod” released his weekly article where he details the new Interactive Advertising Bureaus second annual podcast revenue study which showed some staggering metric increases and dollar figures for the podcasting industry.
Some of the major takeaways from the study include:
- The American podcast industry brought in an estimated $314 million in advertising revenue in 2017, up 86 percent from the $169 million reported the year before. It beat projections established in the previous revenue study, which predicted that the ad business would grow to around $220 million in 2017.
- That’s a pretty huge jump for podcast advertising relative to itself, but let’s not lose sight of the bigger picture: it’s still peanuts compared to other (far older and more consolidated) media industries. Commercial radio brought in $17.6 billion in advertising last year. That’s billion with a “b” and three more digits.
- In any case, the study further predicts that podcast advertising will hit $659 million by 2020, which will still be a fraction of what commercial radio enjoyed in 2017.
Some other interesting takeaways were the categories that generated most of that revenue:
- Arts/Entertainment (17%)
- Technology (15%)
- News/Politics/Current Events (13%)
- Business (11%)
The study also showed that the largest category for advertising spend was financial services, who took the top spot with an 18 percent share. Direct-to-consumer retailers followed at 16 percent, and arts and entertainment finished third at 13 percent.
“These strong numbers speak to advertisers’ increasing recognition that podcasts provide a powerful platform for reaching and engaging audiences,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “Advertisers that range from traditional financial services to direct brand retailers are tapping into the medium’s highly engaged audience. IAB has long been at the forefront of promoting the podcast marketplace and we look forward to another action-packed IAB Podcast Upfront in the autumn, continuing to fuel the growth of this dynamic channel.”
“The growing trend toward ‘anywhere and everywhere’ media engagement has created tremendous opportunity for digital media, of which podcasting is a significant component,” said David Silverman, a Partner at PwC US. “Whether at home on a smart speaker, at work on a PC, or somewhere in between on a mobile device, more and more Americans are listening while they live, providing a robust podcast platform where advertisers can connect with today’s consumers.”
You can find the entire report by clicking HERE.