Podcast advertising revenue in the U.S. grew at a substantial rate in 2017, hitting $314 million, according to the latest Podcast Advertising Revenue Study, released by the Interactive Advertising Bureau and PwC.
That figure is up 86% from 2016, when the study found that podcast advertising captured $169 million in revenue. The study projects that by 2020, podcast revenue will top $650 million.
Significant findings included:
- US podcast advertising revenue is expected to grow more than 110% by 2020, to $659.0 million.
- Reported revenues by surveyed companies increased 275% from 2015, the first year surveyed, to 2017.
- Host-read ads were cited as the preferred ad type, representing more than two-thirds of ads in 2017.
- Direct response ads transacted on a cost per thousand basis made up the majority of campaigns, followed by brand awareness ads (29%).
- Ads integrated or edited into programming accounted for 58 percent of the podcast ad inventory in 2017.
- A spending analysis by ad category included in the report found that financial services took the top spot with an 18 percent share, followed by direct-to-consumer retailers, which accounted for 16 percent, and arts and entertainment, at 13 percent.
- Arts/Entertainment (17%)
- Technology (15%)
- News/Politics/Current Events (13%)
- Business (11%)