Podcast Advertising Growth Slowed in 2023, 2024 Rebound Expected

After a few years of double-digit progress, U.S. podcasting promoting income progress slowed down in 2023. However there’s hope forward.

Per a brand new Interactive Promoting Bureau examine, launched Thursday and ready by PricewaterhouseCoopers, podcast promoting income within the U.S. elevated 5 % to $1.9 billion in 2023, as a result of an total difficult advert market that additionally impacted different sectors of media and leisure. This was in comparison with a soar of 26 % the prior yr, and 72 % earlier than that. In gentle of the slowdown, podcasting promoting income was outpaced by total digital promoting, which was up 7.3 %, in a reversal from prior years.

Just a few podcasting corporations have been in a position to preserve the prior progress charge, however losses from mid-tier corporations dragged the sector down total. Amid the downturn, corporations equivalent to Spotify and Audacy performed layoffs and made cuts to programming.

Throughout the podcasting sector, comedy podcasts took the most important share of U.S. advert income for the yr, with 17 % of the whole, up from 14 % within the prior yr. Comedy podcasts have been probably the most listened to podcast style, in line with the examine, and the sector gained 268 new advertisers within the fourth quarter of 2023. That is the second straight yr that comedy and sports activities have led the pack, outranking information in third place, by way of listenership. 

The sector additionally noticed a rise in advert shopping for from client packaged items associated corporations, in addition to retail manufacturers, that are up 4 and 5 share factors, respectively, since 2021. 

Nonetheless, consultants are projecting the sector will bounce again considerably in 2024, because the promoting income within the podcasting sector is predicted to develop by 12 % in 2024, to greater than $2 billion in income, after which by 10 % and eight % within the following years. By the tip of 2026, the sector is projected to achieve near $2.6 billion in income. It’s value noting nevertheless, that in 2022, earlier than the advert slowdown of 2023, the IAB examine predicted podcasting would attain near $4 billion in 2025.

The idea within the continued progress is bolstered by enhancements in advert measurement analytics and leaning extra into programmatic shopping for, in addition to further income tied to the manufacturing of video podcasts and internet hosting dwell occasions. 

Chatting with The Hollywood Reporter on the finish of 2023, Wondery CEO Jen Sargent and Conal Byrne, CEO of the iHeartMedia Digital Audio Group, were also optimistic about trajectory going into 2024, pointing to the rise in each day podcast listening, in addition to a continued momentum from nationwide manufacturers. 

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