More than 1/4 of Digital Audio Ad Spending will be on Podcasts

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According to eMarketer, US podcast advertising revenue will exceed $2 billion next year and $3 billion by 2026. Podcasts will account for more than a third of digital audio services ad spending by 2026, up from less than a quarter in 2022.

Spending on podcast advertising in the United States from 2019 to 2024 (millions, % change, and % of digital audio services ad spending):

Podcasts, which were once limited to experimental budgets, are now a critical component of multimedia ad campaigns. For the time being, most digital audio monetization will come from recorded music. Still, podcasts’ market share has multiplied—and will continue to grow—that marketers cannot ignore them.

According to a poll of 255 US marketers done by Advertiser Perceptions in August 2021, more than half of advertisers said they planned to boost their podcast ad budgets in 2022. Only 1% expected to cut podcast ad expenditure, while over half (46%) planned to maintain their budgets. Advertisers’ expectations for their digital audio budgets were met with these results.

According to the report, advertisers most commonly drew their podcast ad spending from overall digital budgets.

According to US Agency/Marketer Professionals, in August 2021, budgets were used to fund podcast ad spending:

The majority of advertisers lacked a specific podcast budget. Approximately half of the companies used their digital audio budgets to support podcast campaigns. Expect more marketers to break out podcast-specific budgets as podcast ad spending grows and accounts for a more significant part of total audio ad dollars. For advertisers committed to podcasts in the long haul, having dedicated funding could assist in centralizing campaign planning and measurement.

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About Author

Barb has worked within the digital advertising and marketing space for over 20 years. Over the years, she found it difficult to find information on the simplest of subjects tied to the digital marketing space, so she decided to embark on a journey to create a space that others may appreciate.

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