Wide Variety of Advertisers and Diverse Voices Drive Growth
New York – May 11, 2023 – Podcasting continues to be one of the fastest growing digital channels, growing two times faster than digital advertising overall, according to IAB’s U.S. Podcast Advertising 2022 Revenue & 2023-2025 Growth Projections study, released on May 11 during IAB’s Podcast Upfront.
The seventh annual IAB U.S. Podcast Advertising Revenue study, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2025.
Sports, Society & Culture, and Comedy are Now the Top Revenue-Generating Content Genres
Sports (15%), Society & Culture (14%), and Comedy (14%) are now the top revenue-generating content genres, taking the lead frome News and political opinion content (down from 19% to 12%).
“In-person sports, lifestyle events, and in-store shopping have come back in a big way, taking the lead from news which held the top revenue genre spot since 2018,” said Eric John, Vice President, Media Center, IAB. “Podcasting revenue naturally reflects that shift in consumer behavior and it will be interesting to watch how the balance changes going forward.”
Category Diversification and the Democratization of Podcast Advertising
Podcasting continues to evolve as an ideal medium for niche audiences, attracting advertisers in a wide range of categories including Advocacy, Education, Home Improvement, and beyond. These smaller categories, collectively, are driving 28% of all revenues.
“Both mass and niche advertisers like the audiences, targeting, and ROI along with the brand-safe and suitable environments that podcasting offers,” added John.
The low cost of podcast production has led to an ever-widening array of diverse voices providing authentic content that niche audiences crave.
“It’s clear now that the growth of podcasting was not just a temporary shift in behavior,” said David Cohen, CEO, IAB. “The diversity of voices and content — often targeting underserved audiences — is driving more listenership and more time spent, and that is attracting more advertisers.”
IAB’s Podcast Report Part II to Be Released Later this Year
During IAB’s Audio Leadership Gathering in the fall, IAB will release its 2023 Podcast Report Part II, that will examine the drivers, strategies, and tactics related to 2022 revenues as well as, for the first time ever, reveal insights from the current year’s (2023) performance.
A quantitative, online survey was sent to leading podcast industry experts in February to understand 2022 podcast advertising revenues, revenues by industry category and content genre, as well as forecast revenue growth for the next 3 years. As in prior years, this coincided with a podcast advertising market-sizing to deliver an estimate of the market in the United States, inclusive of non-survey participating companies.
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.
As business, accounting, and tax advisors to many of the world’s leading technology, media, and telecommunications (TMT) companies, PwC (www.pwc.com/us/tmt) has an insider’s view of trends and developments driving the industry. With approximately 1,200 practitioners serving TMT clients in the United States, PwC is deeply committed to providing clients with industry experience and resources. In recent years, our work in TMT has included helping our clients to develop strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across all geographies and segments, including broadband, wireless, film, television, music, publishing, advertising, gaming, sports, theme parks, computers and networking, software and technology services. With thousands of practitioners around the world, we’re always close at hand to provide deep industry knowledge and resources.