Podcasts have become a unique new avenue for advertisers who are looking to target certain consumers that are harder to reach. This has lead to a massive increase in ad spends on podcasts, going from $842 million in 2020 to over $2.2 billion by 2023. The rate of growth is showing no signs of going into the negatives, with the increase for the rest of the year expected to be somewhere in the region of 43% or so.
With all of that having been said and now out of the way, it is important to note that the growth rate of advertising dollars that are spent on podcasts is slowing down to an extent. 2020 saw a 72% growth in podcast ad spendings, but in spite of the fact that this is the case, the growth rate has remained more or less consistent ever since then.
Apart from a sudden uptick in 2023 when the growth in ad spends reached 43%, each year has seen increases that are somewhere in the mid twenties. 2021 saw ad spends on podcasts increasing by 26%, followed by 25% in 2022. Projected growth for 2024 also hovers at around 23%, although it remains to be seen if this comes to past.
Based on these figures, the Interactive Advertising Bureau estimates that ad spends on podcasts will touch a whopping $4 billion by 2025. One thing that might make this data somewhat less accurate than might have been the case otherwise is that it is based on self reported statistics. There has been no transparency on how the data was used to compile these percentage increases, so it will be interesting to see if growth matches these predictions.
Read next: Ease of Use Reigns: Consumers Prefer Apps Based on User-Friendliness
With all of that having been said and now out of the way, it is important to note that the growth rate of advertising dollars that are spent on podcasts is slowing down to an extent. 2020 saw a 72% growth in podcast ad spendings, but in spite of the fact that this is the case, the growth rate has remained more or less consistent ever since then.
Apart from a sudden uptick in 2023 when the growth in ad spends reached 43%, each year has seen increases that are somewhere in the mid twenties. 2021 saw ad spends on podcasts increasing by 26%, followed by 25% in 2022. Projected growth for 2024 also hovers at around 23%, although it remains to be seen if this comes to past.
Based on these figures, the Interactive Advertising Bureau estimates that ad spends on podcasts will touch a whopping $4 billion by 2025. One thing that might make this data somewhat less accurate than might have been the case otherwise is that it is based on self reported statistics. There has been no transparency on how the data was used to compile these percentage increases, so it will be interesting to see if growth matches these predictions.
- Also read: Search Marketing is Experiencing a Massive Change, With 20% of CMOs Decreasing Investments in SEO
Read next: Ease of Use Reigns: Consumers Prefer Apps Based on User-Friendliness
