The annual PwC and IAB podcast revenue numbers are in and they did not disappoint. As we have said numerous times before, the podcast market is in the first inning of a double header game. We will see innovation within this space we can’t even think of today. Just like search advertising completely changed the advertising landscape, podcast monetization and audio will do the same.
According to a study published on Monday (June 3) by the Interactive Advertising Bureau (IAB) and PwC, self-reported podcast advertising revenues (“revenues”) by 22 reporting companies in the United States totaled $344.7 million for the full year (“FY”) of 2018, in a market estimated to total $479.1 million.
Year-over-year growth from 2016 to 2018 was significant for both
self-reported revenues and the total market estimate.
In 2018, self-reported podcast advertising revenues grew, increasing 49%
between Q4 2017 and Q4 2018, and yielding a 15% compound quarterly
Dynamically Inserted Ads increased from 41.7% to 48.8%; Edited-in / Baked-in ads still represent the majority of podcast ads delivered in 2018.
Brand Awareness and Branded Content campaigns continue to make up a larger part of how advertisers choose to reach their audience.
Host-Reads Ads continue to be the preferred Ad Type, representing a little less than two-thirds of Ad Types in 2018. Announcer-Read / Pre-Produced Ads make up most of the other one-third.
The majority of ads are purchased / sold on a quarterly basis. Programmatic activity is increasing.
Cost per thousand continues to be the dominant pricing method in 2018. Cost per acquisition is no longer significant.
60 second advertising spots were the most popular spot length in 2018. 90 second advertising spots were not far behind.
Of the 14 program genres measured, the top five constituted more than 65% of advertising revenue captured.
Of the 13 business categories measured, the top five represented nearly 75% of advertising revenue captured, with Direct-to-Consumer Retail serving as the category leader.