Digital Transformation IAB Podcast

US podcast ad revenue expected to nearly double this year, hitting $220m


By Lisa Lacy | n/a

June 26, 2017 | 3 min read

US podcast advertising revenue is expected to hit more than $220m in 2017, marking an uptick of 85% over $119m in 2016, according to the IAB Podcast Advertising Revenue Study.

The IAB said US podcast advertising revenue will grow 85% this year.

The IAB said US podcast advertising revenue will grow 85% this year.

The IAB said the study draws on historical data compiled from 20 of the industry’s largest players and includes all forms of podcast advertising to provide a reasonable measurement of podcast advertising growth.

It found revenue grew 73% between 2015 and 2016 – and 2016 saw more revenue generated by dynamically inserted ads for the first time.

What’s more, findings from 2015 and 2016 show marketers prefer ads read by podcast hosts to those that are pre-produced.

Nevertheless, the IAB said direct response campaigns continue to be the most prevalent campaign type with brand awareness and branded content campaigns increasing from 2015 to 2016 as well.

The IAB said the 2017 estimate is top line and therefore cannot be broken down.

This research comes after the IAB released its 2016 Internet Advertising Revenue Report, which included the first market sizing of the digital audio space and showed digital audio ad formats brought in revenue of $1.1bn.

"The IAB Podcast Advertising Revenue Study proves two things — the whole world is listening and brands are taking notice,” said Randall Rothenberg, president and chief executive of the IAB, in a statement. “From the remarkable growth of podcast ad revenue, we're seeing an ancient axiom being proved yet again: great rewards go to those who surprise and delight their fellow humans."

David Silverman, a partner at PwC US, which conducted the research, added, “These findings confirm that podcasting is experiencing impressive year-over-year growth and we can expect even more gains on the horizon.”

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