IAB/PwC Study: Podcast Revenue Hit $314 Million In 2017

Revenue Report

The INTERACTIVE ADVERTISING BUREAU and PwC have released their IAB/PwC Podcast Advertising Revenue Study for full-year 2017, and it shows U.S. podcast advertising reaching $314 million in revenue in 2017, up 86% from the previous year.  The study projects revenue to reach $659 million by 2020, a 110% increase from 2017.

Among other findings, host-read ads made up over two-thirds of ads in 2017; most campaigns were direct response ads sold on a cost per thousand basis, followed by brand awareness ads (29%). Native ads integrated or edited into content represented 58% of podcast ads.

The top four of fourteen podcast content genres generated over half of podcast advertising revenue -- Arts /Entertainment (17%), Technology (15%), News/Politics/Current Events (13%), and Business (11%),  As for the advertisers, financial services were 18% of that group, with direct-to-consumer retailers accounting for 16% and arts and entertainment at 13%.

“These strong numbers speak to advertisers’ increasing recognition that podcasts provide a powerful platform for reaching and engaging audiences,” said IAB EVP, Industry Initiatives ANNA BAGER. “Advertisers that range from traditional financial services to direct brand retailers are tapping into the medium’s highly engaged audience. IAB has long been at the forefront of promoting the podcast marketplace and we look forward to another action-packed IAB Podcast Upfront in the autumn, continuing to fuel the growth of this dynamic channel.”

“The growing trend toward ‘anywhere and everywhere’ media engagement has created tremendous opportunity for digital media, of which podcasting is a significant component,” said PwC US Partner DAVID SILVERMAN. “Whether at home on a smart speaker, at work on a PC, or somewhere in between on a mobile device, more and more Americans are listening while they live, providing a robust podcast platform where advertisers can connect with today’s consumers.”

The study was underwritten by AUDIOBOOM, AUTHENTIC, ESPN RADIO, GIMLET MEDIA, HOW STUFF WORKS, MARKET ENGINUITY, MIDROLL MEDIA, NATIONAL PUBLIC MEDIA, PANOPLY, PODCAST ONE, PMM, TURNER PODCAST NETWORK, WESTWOOD ONE, WNYC STUDIOS, and WONDERY.

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