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Podcast Revenue Moving On Up – Digital Gabe
Digital Gabe
Cutting Edge Commentary On All Things Media

Podcast Revenue Moving On Up

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Yesterday the IAB and PwC jointly released a report showing the growth of podcasting revenue in the US.  The numbers speak for themselves.  YoY podcasting is up 86% from $169M to $314M.  While that’s impressive, the IAB is forecasting an even faster growth rate over the next few years.  As you can see in the image below podcasting rev is expected to surge to $659M by 2020, which is an annualized growth rate of 111%.

Beyond these gaudy stats it’s interesting to understand how podcasters are making their money.  The two main ad types of a podcast are sponsoring ads, which are usually host read commercials baked into the podcast itself, and your typical prerecorded audio ads inserted during podcast breaks.  As podcasting grows you’d expect more different clients to advertise in a given episode, which would mean more of the latter inserted ads.  However, that’s not the case.  In 2016 ad insertion made up 56% of US podcasting rev, but in 2017 that percentage dropped to 42%.  Conversely baked in sponsoring ads represented 58% of 2017 revenue, up from 44% in 2016.  So it appears podcasters are finding more traction with the endemic sponsoring ads than they are with run of the mill audio ads.

Regardless of how they’re making their money, it’s obvious podcasting has hit its revenue stride and is poised to keep charging ahead during the foreseeable future.  Keep an eye on this one.


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