At a time when advertising across many sectors is slowing down, podcast and audio investments might remain strong in the next year.
The audio business is continuing to grow on platforms, from live streams to exclusive shows, with varying success. Players from Spotify to Pandora owner SiriusXM saw ad revenue grow in the second quarter, whereas tech giants like Meta saw dips. Additionally, with Twitter and YouTube recently introducing podcast features, there are growing options for brands and creators to generate additional revenue and reach another demographic.
Experts say podcast listeners are a sticky audience, and the content offers more flexible ad formats. That might explain why the podcast advertising spend has grown from $806 million in 2018 globally to $2.6 billion this year, according to research firm WARC. In 2023, it is projected to reach nearly $2.8 billion globally, accounting for 26.8% of all online audio investments. By comparison, global ad investments in radio will drop an estimated 2.4% next year.
“Most people are running or driving or doing something while listening, and I don’t think they’re skipping through the ads,” said Nadia Gonzalez, CMO at Scibids. “Audio ads are a strong format at the moment.”
The variety in ad formats and devices to reach consumers is helping drive interest to this medium – from earbuds and speakers to smart home devices and car listening. The podcast format is effective, especially if you have an audience that likes a show or its creator, said James McDonald, director of data, intelligence and fo