In less than 15 years, on-demand podcasts have become a key part of the media landscape that is luring advertisers to a market that is worth tens of millions of dollars and growing, reports phys.org
According to Edison Research, 124 million Americans listen to audio podcasts including 73 million on a monthly basis.
"Podcasts are now getting to the point where they sit alongside other forms of premium media like video and books and television and music," said Matt Lieber, a co-founder of Gimlet Media, a major podcast producer.
Podcast ad revenues doubled in 2017 to $313 million, according to a study by PricewaterhouseCoopers (PwC) with the Interactive Advertising Bureau (IAB).
That is far less than the estimated $14 billion in radio ad revenues for 2016, but podcasting is showing strong growth—likely to double again by 2020 according to the PwC/IAB report.
"Podcast sponsorship revenue is growing just like the audience is growing," said Neal Carruth, general manager of podcasts for National Public Radio, a key player in podcasting.
"Large brand advertisers have become more interested in recent years. They're very attracted to the age of the podcast audience, to the engagement of the podcast audience, to the intelligence, the education and the professional accomplishments of the podcast audience. It's a very desirable audience."
NPR, one of the earliest entrants in podcasting more than a decade ago, has some 17 million listeners to its podcasts such as "Planet Money," "Fresh Air" and "Ted Radio Hour," far more than any rivals.
While the majority of the estimated 500,000 podcasts produce little or no revenue, some top podcasts can generate "millions of dollars" annually, according to Diehn.
Podcasting is particularly suited to the smartphone generation and is likely to grow with increased use of connected devices.
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