This year’s report finds marketers spent $479 million to advertise on podcasts in the U.S., an uptick of 53 percent from $314 million in 2017. Based on market trends and surveys returned by significant podcast companies in the US, the report projects that revenues will top $1 billion in 2021.
Driving the growth in revenues is podcast listening which continues to surge in the US, increasing 7% in one year. More than half of the 12+ population has listened. Meanwhile, podcast listeners continue to respond well to ads, scoring high marks in terms of engagement with ads as well as responsiveness.
“The tremendous growth in podcast ad spending is further evidence that podcasts continue to deliver strong results for both brand and direct response advertisers,” said Mark McCrery, CEO of Authentic and Podtrac. “Spending by content category also maps closely to the podcast categories with the largest audiences, and with more and more places to discover podcasts, the medium is on a strong growth path.”
Today’s consumer marketplace, driven by technologies like connected cars and smart speakers has created an Audio-First environment where consumers use voice commands and receive responses audibly. Whether it’s while driving a car, cooking dinner, or working out, audio is the constant companion of today’s consumer and this has created great demand for content. Podcast publishers offer enormous variety and quality that is a key driver of growth not just in audience size but also in the amount of time people spend listening.
“Because of the strong growth trends, some of the biggest brand marketers in the country have really embraced podcast advertising and made it a regular component of their overall media mix,” says Ken Lagana, Head of Sales and Marketing, Megaphone.
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