In the U.S., ad revenues from podcasting are expected to reach $2B by 2023, as per the Interactive Advertising Bureau's (IAB) Podcast Advertising Revenue Study. IAB released the results of this study at Podcast Upfront 2021, the online event for media agencies and brands in podcasting.
- Podcast ad revenues were at $842M at the end of last year, driven by "a particularly strong fourth quarter." This indicates a 19% growth in ad revenues, as compared to 2019.
- The percentage of dynamically inserted ads grew in comparison to baked-in ads when compared to last year. Currently, 67% of ads are dynamically inserted as compared to 33% being baked-in.
- Definition: A dynamically inserted ad is recorded separately and "stitched into the podcast episode," at the time of download. A baked-in ad is recorded alongside the episode itself.
- Dynamic Ad Insertion (DAI) allows brands to target a household based on parameters including location and demographics.
- Over half of podcast ads laster longer than 30 seconds. Ads in the mid-roll placement, i.e. around halfway through the issue, accounted for three-fourths of the revenue made across all podcast ads.
- Direct-To-Consumer brands maintained the top advertiser category market share at 19%.
- The complete PDF is available for viewing here, after creating a free IAB account.