Wide Variety of Advertisers and Diverse Voices Drive Growth

Podcasting continues to be one of the fastest growing digital channels, growing two times faster than digital advertising overall, according to IAB’s “U.S. Podcast Advertising 2022 Revenue & 2023-2025 Growth Projections” study, released on May 11 during IAB’s Podcast Upfront.

The seventh annual IAB U.S. Podcast Advertising Revenue study, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2025.

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Sports, Society & Culture, and Comedy are Now the Top Revenue-Generating Content Genres

Sports (15%), Society & Culture (14%), and Comedy (14%) are now the top revenue-generating content genres, taking the lead from News and Political Opinion content (down from 19% to 12%).

“In-person sports, lifestyle events, and in-store shopping have come back in a big way, taking the lead from news which held the top revenue genre spot since 2018,” said Eric John, Vice President, Media Center, IAB. “Podcasting revenue naturally reflects that shift in consumer behavior and it will be interesting to watch how the balance changes going forward.”

Category Diversification and the Democratization of Podcast Advertising

Podcasting continues to evolve as an ideal medium for niche audiences, attracting advertisers in a wide range of categories including Advocacy, Education, Home Improvement, and beyond. These smaller categories, collectively, are driving 28% of all revenues.

“Both mass and niche advertisers like the audiences, targeting, and ROI along with the brand-safe and suitable environments that podcasting offers,” added John.

The low cost of podcast production has led to an ever-widening array of diverse voices providing authentic content that niche audiences crave.

“It’s clear now that the growth of podcasting was not just a temporary shift in behavior,” said David Cohen, CEO, IAB. “The diversity of voices and content — often targeting underserved audiences — is driving more listenership and more time spent, and that is attracting more advertisers.”

IAB’s Podcast Report Part II to Be Released Later this Year

During IAB’s Audio Leadership Gathering in the fall, IAB will release its 2023 Podcast Report Part II, that will examine the drivers, strategies, and tactics related to 2022 revenues as well as, for the first time ever, reveal insights from the current year’s (2023) performance.

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